Tree-planting for biochemical and energy sectors
Deforestation is major issue for developing nations in the fight against climate change. To meet this challenge, EDFI members have invested in Africa’s largest forestry company and a leading producer of greenhouse gas emissions offsets.
- Green Resources
- Tanzania, Uganda, Mozambique
Deforestation and forest degradation lead to as much as 1/6 of the greenhouse gas emissions. In Tanzania only, 420,000 hectares of forest disappear annually.
With more than 40,000ha of standing forest in Mozambique, Tanzania and Uganda, Green Resources is Africa’s largest forestation company and a leader in East African wood processing. Established in 1995, it aims to develop the commercial tree-planting industry for use in local markets as construction materials and bioenergy.
Currently, more than three-quarters of its planted forest are FSC-compliant. The company also seeks to develop the leading African carbon offset business.
EDFI members have a long history of engagement with Green Resources and have provided financing through various instruments since2003.
The company’s strategy consists in developing forestation in a sustainable manner for both traditional use (sawn timber, panel board, poles, etc.) and for the bio-chemical and energy sectors.
Green Resources is also a leader in forestry-derived greenhouse gas emission reductions, having registered in the world’s first forestry project based on the Voluntary Carbon Standard (VCS) in 2009 and having sold the first issued credits in 2010. The company expects to generate carbon credits of an average of 260,000 tons CO2 equivalent per year for 2013-2017. Carbon revenues are reinvested locally and 10% is spent on community projects.
- Generation of Voluntary Emission Reduction (VERs) over 99 years.
- 41,130ha of total planted area
- Production of biomass energy, in addition to traditional wood manufacturing
- 3,344 jobs created
Photo credit: ©Green Resources
- Financial Instrument
- Senior and mezzanine debt
- Committed amount
- €24 million
- Green Resources
- Financing vehicle