Australia’s green bank CEFC and UK asset managers Aviva Investors and Gresham House have created a A$142m (€86.2m) Tasmania natural asset trust seeded with a 21,745ha property.
The Tasmania Natural Asset Trust (TNAT) platform, managed by Gresham House Asset Management, has been launched with the acquisition of the Rushy Lagoon property in northern Tasmania.
The project will combine commercial softwood plantations on low-productivity land with sustainable grazing and large-scale conservation and ecological restoration.
Heechung Sung, head of natural capital at CEFC, said: “This critical investment converts degraded farmland into a production model that will boost Australia’s forestry industry, create local jobs, support sustainable timber production, introduce sustainable grazing and protect the unique environment.
“It is a demonstration of the power of institutional capital to drive economic development for regional communities while also supporting decarbonisation and positive environmental outcomes.”
Greta Talbot-Jones, director of natural capital at Aviva Investors and co-portfolio manager of the carbon removal fund, said: “This is an important project in Tasmania with the potential to create real economic benefits for the region and repair a degraded area of land through considered and sensitive afforestation.
“We think it will be a great example of how our investment activity can deliver long-term investment outcomes, whilst having a positive and real-world benefit on the surrounding habitat and within local communities.”
Dorian van Raalte, associate director, forestry and natural capital at Gresham House, said: “TNAT is a new model for sustainable land management in Tasmania. By combining climate-positive forestry with restoration of high-value habitats, we aim to deliver durable natural capital outcomes while supporting regional jobs and skills.
“Our management approach prioritises safeguards, certification and transparent monitoring, including the protection of the Lower Ringarooma Ramsar site.”
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