Sequestrated Carbon in Forests as an Investment in the Future: views on the future of carbon markets
Kontinen, Nella (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023060220925
https://urn.fi/URN:NBN:fi:amk-2023060220925
Tiivistelmä
This paper introduces views on investing in carbon markets from the forestry point of view. Carbon markets are firmly related to climate change and sustainable choices, that makes it is also an intriguing topic to study. Forest has been a steady asset throughout history, as the value of a forest does not follow economic shifts during inflation or deflation. The value of forests as carbon sinks could add value to forests in the future through carbon markets.
The research was made to find out what the current state of carbon markets is and what it will be in the future. The paper aims to think about the topic from a forestry perspective and see what kind of possibilities forest carbon possess considering carbon markets. Research data was collected through interviews to gather qualitative results.
There is pressure coming from society to make carbon markets effective globally. In addition, forest owners could be incentivized to conserve their forests if sequestrating carbon provided return on capital as an alternative to getting revenue from logging trees. From forest owners’ perspective, the key issue to engaging investors in carbon markets is that in many countries forest carbon is owned by governments, regardless of who owns the forest. However, investors are optimistic that sooner or later the carbon markets will become attractive in the areas where they are not yet considered potential.
The research was made to find out what the current state of carbon markets is and what it will be in the future. The paper aims to think about the topic from a forestry perspective and see what kind of possibilities forest carbon possess considering carbon markets. Research data was collected through interviews to gather qualitative results.
There is pressure coming from society to make carbon markets effective globally. In addition, forest owners could be incentivized to conserve their forests if sequestrating carbon provided return on capital as an alternative to getting revenue from logging trees. From forest owners’ perspective, the key issue to engaging investors in carbon markets is that in many countries forest carbon is owned by governments, regardless of who owns the forest. However, investors are optimistic that sooner or later the carbon markets will become attractive in the areas where they are not yet considered potential.