The twenty-first century has seen the rise in the new trend of nature investments across the globe. These kinds of investments aim at environmental conservation with the long-term goal of deriving financial value from those conservations. Some of the outstanding nature investment initiatives include the forestation of areas without forest cover.
Trees that grow in such places are those that have a proven ability to grow in harsh climatic conditions where no other type of trees can thrive. Trees such as teak, the bamboo, acacia, and the blue gum are some of those which are chiefly considered for this kind of investment. Here we, therefore, see that the key considerations for any tree that will be used in this investment type are its ability to grow in adverse climatic conditions as well as its ability to grow within a very short period of time.
One of the main aims for forestation of areas lacking vegetation cover we have established is to conserve those areas from adverse effects of deforestation such as soil erosion. The fact that these vegetation types will grow rapidly in such areas would imply that the harvesting can be done within a very short period of time and this will offer a quicker return on investment for the investors.
The consideration also has to be for the vegetation type that has more than one value for the investors. By reviewing the list of trees used in this investment, for example, one will realize that they are a good alternative for timber and this ensures that forested areas are not invaded by those looking for timber. The vegetation can also be used as fodder for the livestock. The other benefit includes the extraction of medicinal chemical components from the trees as well as extraction of perfumes.
Plantation management is also another common form of nature investment model. This product seeks to introduce the latest technological ideas and tools to already existing models of plantation management. The plantation owners and farmers in this investment model are given a unique opportunity to reap maximum returns from their plantations and farms within a very short time of investment.
It should also be noted that this investment type only seeks to manage plantations and is not responsible for offering any agricultural advice beyond what is grown in the plantation. This product can be used for the creation of new plantations as well as for the management of existing ones. The plantation owner should, however, make it very clear to the investors what they intend to have grown in the plantation and for what period of time the plantation should be managed as well as how they want the farms to be managed during that period of plantation management.