New sustainable forest fund gets EIB backing

The Dasos Timberland Fund I (DFTI) is a Luxembourg-based fund targeting timberland investments in Europe and emerging markets. Its stated aim is to enhance sustainable forests by investing in forest management programmes that apply international sustainable development principles.

The EIB investment marks the first time the bank has backed sustainable forest management. Dasos fund managers will use the EIB funding to finance forestry investments globally, with an emphasis on European member states. The fund will target projects that are having a positive effect on climate change, soil and freshwater conservation and biodiversity.

The EIB said it was backing DTFI to meet its “priority objective” to promote environmental sustainability by funding projects that preserve natural resources and protect nature and wildlife.

“The EIB places great importance on strengthening and diversifying our approach to environmental protection,” said Simon Brooks, EIB vice president responsible for the bank’s environmental activities. “Investment in the Dasos Timberland fund is somewhat of a trailblazer operation for us at the Bank. It is the first time we have ever invested in a timberland fund and we are confident that it will act as a catalyst for the creation of further opportunities in this area.”

DTFI, which has an investment period of four years, is aiming to reach a total fund size of €300 million (£250 million). It raised €85 million (£72 million) in its first closing earlier this month and is seeking to make its first investments with immediate effect.