Study: Forestry finance market could soar to $800bn as net zero goals multiply

But supply chain deforestation threatens to undermine vast market potential for nature-based climate solutions, PRI warns

Corporate demand for carbon removal and offsetting will establish forests as a major new asset class that could generate $800bn annually for investors by mid-century, according to the UN’s Principles for Responsible Investment (PRI).

The forest finance market, historically small and managed by the public sector, is set to balloon into a trillion-dollar market over the coming decades as a growing number of corporates make investments in afforestation and reforestation projects that help them meet their net zero goals, according to PRI research today.

The research – which forms part of a new guide to negative emissions and land-use released by the PRI today – predicts the value of assets in the nature-based offsets market could swell to “well over” $1.2tr by mid-century, a figure that even outstrips the current total market capitalisation of oil and gas majors.

Major forest-related climate commitments from some of the world’s largest companies – including Shell, BP, Total, Apple, Microsoft and Amazon – highlight how corporate net zero agendas are already turbocharging demand for carbon credits from nature-based climate solutions, it notes.

Yet even prior to the explosion of net zero commitments from companies over the past 18 months, the value of forestry and land-use CO2 credits had been growing. The value of such credits traded in the voluntary offset market tripled to $172m between 2017 and 2018, while the share of forestry and land-use related offsets grew from 52 to 64 per cent of the total voluntary market, it notes.

But while reforestation and afforestation have emerged the earliest feasible negative-emissions technology investment opportunity for companies looking to offset their carbon, the report also notes that technological solutions could also grow to be a hundred-billion-dollar market. Direct air carbon capture, use and storage (DACCS) and bioenergy with carbon capture and storage (BECCS) technologies could generate a further $625bn by 2050, it estimates.

Fiona Reynolds, chief executive of UN PRI, urged investors to take steps in the near-term to take advantage of investment opportunities in the bourgeoning forest market. “Policy and business momentum have now advanced to a critical mass for forests to begin emerging as a new asset class,” she said. “Investors can act now to unlock investment opportunities and to take an increasingly leading role in financing.”

It follows a number of high-profile investments in nature-based climate solutions from major corporates over the past year. Shell has invested in projects geared at planting five million trees in the Netherlands and regenerating a 800 hectare forest in Australia; BP is protecting a 40,000 hectare forest in Zambia; Apple is protecting a 11,000 hectare forest in Columbia; and Amazon plans to spend $10m on restoring 1.6 million hectares of US forest, according to the report.

However, the PRI warns that for investors to take advantage of the burgeoning market, they must take an active role in tackling deforestation, which not only harms the climate but constrains the total investible nature-based solutions market. Rates of deforestation have doubled during the pandemic, it notes, and as such investors must take steps to end investments in companies with deforestation in their supply chains.

“Afforestation activities are the most viable first move, but to ensure success actors must simultaneously focus on ending deforestation,” Reynolds said, adding that global forest laws need to be vigorously enforced and tightened.

The guide urges investors to take a stand in promoting sustainability standards for BECCS, warning that overreliance on the negative-emissions technology will push the world to its planetary boundaries on water and land availability. It also urges investors to promote a global standard for nature-based offset market.

“With more and more companies setting net zero targets, investors also need greater transparency about the negative emission technologies businesses will rely on to get there,” Reynolds added.

Elsewhere, the analysis highlights a number of emerging business models as holding the most promise for facilitating private investment in forest finance, ranging from green bonds, forest insurance provision, carbon off-taker guarantees, sustainable farming agreements and carbon farming agreements.

Distressed asset purchases – where investors buy and restore deforested or degraded public and private land to benefit from the carbon stock it produces – and a ‘stewardship model’ where an investor leases deforested or degraded land, are also included in the shortlist.

Allison Spector, director of sustainability at global investment manager Nuveen mused that private investors could “open the door” for major forest-related investments worldwide that could help companies meet their net zero targets and steer a Paris-aligned future.

“We believe there is a powerful role for forest-based natural climate solutions,” she said. “Yet the feasibility of implementing these strategies across the vast forestlands of the world is yet to be demonstrated and is predicated on an end to deforestation.”

Original Source: businessgreen.com

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A luxury when they were first introduced decades ago, cell phones have become a ubiquitous part of life. And along with a phone in every pocket comes the worry about replacing it if it breaks. While cell phone insurance was not as big a market when phones were simpler and less expensive, it has become much more common with cell phones costing hundreds if not thousands of dollars.

 

What you might not know is that some credit cards that you may already have offer a type of cell phone insurance. Having these credit cards (and in most cases paying your monthly bill with the card) will qualify you for some or all of the replacement costs if your phone is damaged or stolen. In this article, we will take a look at some of the most popular credit cards that offer cell phone insurance.

Chase Freedom Flex

The Chase Freedom Flex is a relatively new entry to the credit card world. Like many World Elite Mastercards, the Freedom Flex offers cell phone protection. With the Freedom Flex, you are covered up to $800 per claim and $1,000 per year in cell phone protection. The coverage applies to any phone that is damaged or stolen that has been paid for with your Freedom Flex card. There is a maximum of two claims in a 12 month period, and each claim comes with a $50 deductible.

 

READ MORE: What to Know About the New Chase Freedom Flex Card

US Bank Visa Platinum

If you have a US Bank Visa Platinum card, you are also eligible for cell phone protection if your phone is damaged or stolen. Again, you must pay your cell phone bill with your US Bank Visa Platinum card, and the coverage applies to your primary line and any secondary, additional or supplemental lines. With the US Bank Visa Platinum Card, you are covered for up to $600, with a $25 deductible per claim. There is a maximum of two claims per 12 month period.

Chase Ink Business Preferred

The Chase Ink Preferred is a business credit card, with cell phone coverage targeted to business owners. You do have to pay your cell phone bill with your Ink Preferred card in order to qualify for the bonus, but one nice thing about the Ink Preferred card is that it is one of the few cards that offer cell phone protection that ALSO give you a bonus for paying your bill. You will earn 3 Ultimate Rewards points per dollar spent on your cell phone bill.

With the Ink Preferred cell phone coverage, you can be reimbursed up to $600 per claim for covered theft or damage. You are limited to a maximum of three claims per 12 month period, and each claim comes with a $100 deductible.

Citi Prestige

The Citi Prestige is an ultra-premium credit card that comes with a $495 annual fee but offers the highest dollar amount for a claim of any of these cards with cell phone protection coverage. Citi Prestige cardholders are eligible to be reimbursed for the replacement cost for a stolen or damaged cell phone. There is a $1,000 limit per claim, and a $1,500 limit per 12 month period, with a deductible on each claim of $50. You must pay your cell phone bill with the Citi Prestige in order to be eligible for coverage.

American Express Wells Fargo Propel

The Wells Fargo Propel American Express is one of Wells Fargo’s cards that offers cell phone coverage. In order to be eligible for the Wells Fargo cell phone insurance, you need to pay your regularly occurring cell phone bill with your Wells Fargo card. You are eligible for up to $600 per claim for covered damaged or stolen phones. There is a maximum of two claims per 12 month period, and each claim has a $25 deductible.

The Bottom Line

If you are looking for peace of mind about your cell phone, you’ll want to check out one of these cards that offers cell phone insurance. In almost all cases, the coverage only covers damaged or stolen phones, not lost phones. Also, you will need to pay your monthly cell phone bill with the credit card in question in order to be eligible for the insurance.

 

Keep in mind that the exact terms and benefits of the cell phone protection with each of these cards varies slightly. You will want to make sure to look through the card’s benefits guide to find the exact terms and conditions that apply to your card. The benefits guide will help you understand what exactly is covered, what your claim limits are, and how soon after making your payment you become eligible for cell phone protection.

 

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

The post 5 Cards That Will Pay for Your Cell Phone if (When?) You Break It appeared first on MintLife Blog.

Original Source: blog.mint.com

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