Green capital

Many investors don’t know what restoration is or realize the extent of its potential. A new report by World Resources Institute (WRI) and The Nature Conservancy (TNC) reveals that businesses around the world are making money by planting trees, unleashing a growth opportunity for venture capital, private equity and impact investors. The research indicates the restoration economy is at a tipping point.

The report, The Business of Planting Trees: A Growing Investment Opportunity, shows that restoring degraded and deforested lands is not only a boon for the environment, but a lucrative opportunity for investors and entrepreneurs. WRI and TNC looked at hundreds of companies – tech startups, consumer goods companies, timber producers, etc. – and selected 14 enterprises to highlight from around the world. The publication finds that the sector is growing rapidly, with some businesses poised to grow revenues up to 10 times per year.

“The long-term growth outlook is positive as technology lowers the costs of tree-planting, consumers reward companies who restore forests, governments make large commitments to rehabilitate their land, and business model innovation continues,” says Sofia Faruqi, manager at WRI and report co-author. “The confluence of these factors signals that now’s the time to invest in restoration.”

The report identifies four emerging themes in the restoration economy: technology, consumer products, project management and commercial forestry.

April Mendez, co-founder of Fresh Coast Capital (a company profiled in the report) says, “We’re offering investors the opportunity to earn a return from urban green spaces. Private investment can accelerate cutting-edge green infrastructure that improves air quality, health and community cohesion, while providing cost-effective stormwater management for cities.”

www.wri.org/publication/business-of-planting-trees