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Timber Investor Manulife raises more than $200 million to buy forests for carbon
Manulife Investment Management has announced that it raised $224.5 millions to purchase forests in which it will place a priority on carbon sequestration rather than wood production.
The firm, which is a division of Toronto-based insurance and financial services firm Manulife Financial Inc., intends to allow trees to grow longer on properties bought by its climate fund. This will generate carbon offsets, which it can then sell to polluters who want to compensate for greenhouse gas emissions.
In recent years, the market for forest carbon offsets has boomed. Investors have been promised that companies will operate in the future without emitting any emissions into the atmosphere. They have set so-called net zero targets. However, they have not found a way to compensate for these emissions other than paying timberland owner to cut down less and leave more trees standing to absorb carbon.