Ecotrust Forest Management (EFM), a Portland, Oregon-based forest investment and management firm, has announced a strategic joint venture with Tokyo, Japan-based Sojitz Corporation, a global trading and investment company, through its U.S. subsidiary, Sojitz Corporation of America. The partnership involves the launch of a dedicated forestry investment fund, aiming to generate high-integrity carbon credits and advance climate-smart forest stewardship across the U.S. The newly formed entity, dubbed EFM Sojitz Management, will oversee the fund, with a target capital raise of approximately $200 million. Initial commitments are expected from Sojitz, Fuyo General Lease and other global investors.
This collaboration harnesses EFM’s track record in managing 200,000-plus acres of forestland and creating positive climate, community and biodiversity outcomes, accelerating the deployment of nature-based solutions to combat climate change. The strategy involves a focus on acquiring and managing climate-resilient forestlands within the U.S., generating returns for investors through sustainable timber production and the development of forest-based carbon credits.
EFM CEO Bettina von Hagen stated, “EFM’s mission is to create financial value from investments in forests alongside positive environmental and social impact. Partnering with Sojitz allows us to expand our climate-smart forestry model, mobilize capital at scale – including in key growth markets like Japan – and provide investors with access to high-quality carbon credits that also support biodiversity, water resources, and rural jobs.”
EFM takes a multi-pronged approach to forest investing, comprising carbon credits and conservation easements alongside traditional timber revenues. This approach to forest management not only revitalizes timber resources and boosts the output of valuable wood products but also yields lasting climate, community and ecological advantages, including the restoration of salmon habitats, increased recreational access, the sustainable harvesting of non-timber forest products, the preservation of tribal cultural practices and enhanced carbon sequestration.
EFM’s history of innovation within the forest carbon market, marked by the implementation of sophisticated Improved Forest Management (IFM) projects that generate high-integrity carbon credits, positions it as a compelling investment opportunity. This new fund will allow investors to leverage EFM’s climate-smart strategy and directly participate in the value created by carbon credits from sustainably managed forestlands.
For Sojitz, where decarbonization is a central management priority, evidenced by the establishment of its Energy Transformation Division, this joint venture with EFM signifies a strategic commitment to furthering global climate objectives through collaborative investments in nature-based solutions.
Sojitz General Manager of Energy Transformation Department Koji Aonuma said, “We are excited to work with EFM, whose deep industry knowledge and impact-driven approach align closely with our vision for a sustainable, low-carbon future. By combining EFM’s extensive knowledge and experience with Sojitz’s domestic and international business networks, built through its existing businesses, we aim to form a large-scale fund and create value in collaboration with a diverse range of investors, primarily Japanese companies.”
Working alongside Sojitz, EFM has set its sights on attracting a diverse base of investors, notably from Japan and other international arenas. This initiative aims to channel fresh capital into climate-smart forestry, spur advancements in natural climate solutions and deliver a meaningful impact to global sustainability goals.
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