copy of eke nyenrode 091109

1

ENHANCING BIODIVERSITY AND RETURNS THROUGH

REFORESTATION WITH MIXED, NATIVE AND EXOTIC

SPECIES

2

Presented by Andreas EkeDirector Futuro Forestal

www.futuroforestal.com

3

Content

1. Short History2. Unique positioninga) Located in regionb) Parallel Management Structurec) Native and exotic species mixed

stands

4

Futuro Forestal

• Since 1994 in Central America• Pioneers in mixed native species

reforestation• FSC certified since beginning• First ever B2B carbon transaction from

reforestation• First native species only big scale

investment project • 15 years of field experience, scientific

research and institutional cooperation

5

From small scale to uniquely positioned TIMO

Locating, structuring, set up, maintenance and exit of forest investments

Locating, structuring, set up, maintenance and exit of forest investments

6

Our unique approach

1. Located in the region2. Parallel Management Structure3. Set of techniques to manage

native with exotic species

Enablers for high biodiversity

7

1. Located in region

• HQ in Panama• Mostly local teams• Wide network of foresters, researchers and NGOs • Company culture toward field success

• HQ in Panama• Mostly local teams• Wide network of foresters, researchers and NGOs • Company culture toward field success

8

Local Teams

9

2. Parallel Management Structure

Production Management Structure

Production Management Structure

Foundation for community involvement, social benefits and scientific research

10

Environmental training in Nicaragua

In cooperation with University of

Leon and the German

Development Bank

In cooperation with University of

Leon and the German

Development Bank

11

Reforestation Program with schools

12

3. Mixed Native and Exotic Species Approach

Solution for enhanced biodiversity, optimized growth performance and higher yield.

13

Forest Investments

Forest Lands is a growing tangible asset class of investment portfolios

Forest investment ≠ automatically environmentally friendly

Mixed species reforestation is a new and underutilized subset of forest investments

14

Monoculture performs on paper

Inadequate management and poor soil selection can get inferior results

Monoculture mostly does not enhance biodiversity

Mixed native and exotic species perform in the field

15

Monoculture failing to thrive

Soil conditions require different species

Soil conditions require different species

16

Monoculture is less biodiversity

17

Healthy Mixed Stands Forest

18

Exotic Monoculture versus Mixed Native Species

Both models offer:

• Production of precious tropical hardwood

• Carbon sequestration

19

Additional native species approach advantages

• High biodiversity – habitat function for flora and fauna

• Corridor function for endangered animals

• Soil usage optimization by diversity• Positive hydrological function• Potential Non timber products• Landscape & beauty

20

Soil variety on 1 plantation

21

Panama Soil

95% was forest cover> 50% is fit for natives< 4% is fit for teak

95% was forest cover> 50% is fit for natives< 4% is fit for teak

22

What drives the performance of the mixed species model?

• Project layout matching soil qualities with individual requirements of the tree species

• Species knowledge from 15 years experience

• Detailed soil and site analysis• Professional

forest management

23

Existing opportunity of a Biodiversity Investment

• Introducing Timber Opportunities Fund• Caudex Capital-Futuro Forestal joint

venture• Luxemburg SICAV-SIF structure• Latin American focus• First project being implemented• Diversified project pipe line• Forestry management balancing nature

and business- high biodiversity benefits

24

THANK YOU FOR YOUR ATTENTION

25

The fund is the most advanced investment tool in the forestry

world• There is no systemic coincidence

between the 90 Mio year old tropical ecosystems and the several hundreds years old investment mandates of highest IRR possible

• But for long term real sustainability we need something difficult to ask for: Lower returns for more social and environmental benefits.

26

We need a new mandate

Not the highest possible IRR but highest possible biodiversity and social impact and moderate returns.

We are starting a group of interested stakeholders to develop FF3.0 you are invited

27