November 24, 2024

By Gerelyn Terzo, Global AgInvesting Media

The timber investment management arm of BTG Pactual has reached a key milestone toward its goal of restoring degraded land and promoting sustainable forestry in Latin America. BTG Pactual Timberland Investment Group (TIG) has secured $500 million for its Latin American Reforestation Strategy, marking the halfway point of its goal to catalyze $1 billion for the fund.

With support from nonprofit organization Conservation International as impact adviser, BTG Pactual TIG has set its sights on large-scale restoration, conservation and sustainable land management in Latin America to produce environmental, social and economic benefits. Earlier this year, BTG Pactual’s core Latin America timberland strategy managed to exceed its target size after securing $1.24 billion.

BTG Pactual TIG’s Latin American reforestation strategy takes a two-pronged approach, targeting projects that are dedicated to sustainable commercial tree farms on one side and the protection and restoration of native ecosystems on the other. Through its reforestation strategy, TIG targets the delivery of commercial revenue while protecting and restoring critical habitats. So far, this fund strategy has planted more than 8 million seedlings and started the restoration of more than 3,200 hectares (7,907 acres) of degraded land.

In recent months, the U.K. government and Dutch development bank FMO earmarked $55 million for BTG Pactual TIG’s Latin American reforestation strategy. That investment came on the heels of $50 million investments apiece from The World Bank’s International Finance Corporation (IFC) and the U.S. International Development Finance Corporation (DFC). The IFC’s investment targets the production of carbon credits through nature-based solutions, lowering emissions and strengthening sustainable forest management in Brazil.

Reforestation offers the highest potential for slashing carbon emissions but has historically been too capital intensive to achieve at-scale. By purchasing previously degraded land in target regions of Brazil, Uruguay and Chile, TIG sets out to reforest those lands through a combination of planted timberland and native cover restoration.

Of the latest investor milestone, Gerrity Lansing, who is at the helm of BTG Pactual TIG, stated, “Raising $500 million for our Latin American Reforestation Strategy is a testament to our shared belief with Conservation International in the positive outcomes that the thoughtful connection of commercial production and conservation can achieve. We are now over halfway to our goal, and we can already begin to see the impacts of this strategy; as we continue this journey, our dedication to aligning economic returns with climate, community and biodiversity benefits remains stronger than ever.”

BTG Pactual TIG Chief Sustainability Officer Mark Wishnie said, “Our Latin American Reforestation Strategy demonstrates the role public and private investment can play in driving large-scale, positive environmental outcomes. Working alongside Conservation International and other key collaborators and partners, we’re demonstrating that sustainable forestry can be a powerful force for restoration and climate action, while also benefiting communities and aiming to deliver value for investors.”

BTG Pactual TIG oversees $7.2 billion in assets under management across 2.7 million acres under management.

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