WORLD FORESTRY CONGRESS

FAO INVESTMENT AND FINANCING FORUM

Roberto S. Waack roberto@amatabrasil.com.br

MARKET

Solid Wood

Energy

Fibers

Other:Pharmaceutical

CosmeticsFood Industry

Carbon Credits

FORESTS

Natural Forests

Planted Forests

OUR BUSINESS

Other:Non-Timber

Products

EnvironmentalServices

OUR BUSINESS

M³

CERTIFIEDWOOD

US$ 25 up to

US$ 25,000 / m³

BRA-034

CONTINUUM PRINCIPLE

Environmental Services

Non Timber Solid WoodMechanically Processed

WoodFibersEnergy

Source: FSC PWG 2006, adapted by R. Waack

PERMANENTPRESERVATION

LOW IMPACTMANAGEMENT

HIGH IMPACTMANAGEMENT

NO

N U

SA

BLE

AR

EA

S

Increasing conservation value

Increasing environmental m

anagement needs

VALUE CHAIN

CLASSIC INVESTORS IN FORESTRY

Strategic

Institutional

Hedge Funds

Private Equity

TIMOs

Development Banks

Family Offices

Individuals

FORESTS

Natural Forests

Planted Forests

RECENT INVESTORS IN FORESTRY

Strategic

Institutional

Hedge Funds

Private Equity

TIMOs

Development Banks

Family Offices

Individuals

FORESTS

Natural Forests

Planted Forests

1

23

1- If very big, 2 – speculative, 3 – rarely

WHAT WE SEE NEXT INVESTORS IN FORESTRY

Strategic

Institutional

Hedge Funds

Private Equity

TIMOs

Development Banks

Family Offices

Individuals

FORESTS

Natural Forests

Planted Forests

RISK & RETURN

RE

TUR

N

RISK +

+

--

Adding value:ES, NTP, biomass

ES – Environmental services, NTP – Non timber products

Traditional Plantation

IE: Eucalyptus, Pines, Acacia

Natural Tropical Forest Management

OtherPlantations

IE: Teak, Paricá, Guanandi, etc

ContinuumPrinciple

RISK & RETURN

RE

TUR

N

RISK +

+

--

Adding value:ES, NTP, biomass

ES – Environmental services, NTP – Non timber products

Traditional Plantation

IE: Eucalyptus, Pines, Acacia

Natural Tropical Forest Management

OtherPlantations

IE: Teak, Paricá, Guanandi, etc

ContinuumPrinciple

Demand for leadership

•Bureaucratic decisions•Low risk tolerance

•Comfort zone of analysts

•Mainstream economy

RISK & RETURN

RE

TUR

N

RISK +

+

--

Adding value:ES, NTP, biomass

ES – Environmental services, NTP – Non timber products

Traditional Plantation

IE: Eucalyptus, Pines, Acacia

Natural Tropical Forest Management

OtherPlantations

IE: Teak, Paricá, Guanandi, etc

ContinuumPrinciple

Demand for leadership

•Reputation•Environmental

liabilities•New green

economy•High volatility

RISK & RETURN

RE

TUR

N

RISK +

+

--

Adding value:ES, NTP, biomass

ES – Environmental services, NTP – Non timber products

Traditional Plantation

IE: Eucalyptus, Pines, Acacia

Natural Tropical Forest Management

OtherPlantations

IE: Teak, Paricá, Guanandi, etc

ContinuumPrinciple

Demand for leadership

•Leadership•Changing agents•Entrepreneurship•New green deal

economy•Win analysts

blockage•???Role of

development banks???

THANK YOU!

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