TotalEnergies to Invest in Sustainable Forestry in Southeast Asia
A Brief Summary
TotalEnergies announced that it would contribute $50 million to the "Tropical Asia Forest Fund2" (TAFF2) managed by New Forests. The investment aims at certified plantations and native forest conservation projects in South-East Asian countries such as Malaysia, Laos, Cambodia, Thailand, and Vietnam.
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The investment will significantly contribute to pursuing a diverse portfolio of six to eight forestry assets for an investment of $300 million.
The sustainable management, development and acquisitions of the forestry assets will help TAFF2 step up economic activities such as rubber, timber, and carbon credits with co-benefits, consequently bolstering local value chains.
The fund zeroes in on or has high stakes in Environmental, Social and Governance (ESG) activities, aligned with the United Nations Sustainable Development Goals (SDGs). Every investment will be managed according to the performance standards of the International Finance Corporation (IFC), the Forest Stewardship Council (FSC), and the Program for the Endorsement of Forest Certification (PEFC).
The forestry assets will boost: local employment, economic development opportunities for local communities, reinforce biodiversity corridors, protection of primary forests.
Adrien Henry, Vice President Nature-Based Solutions at TotalEnergies, said: "We are pleased to support the first close of TAFF2, allowing us to extend our presence in Asia and diversify our portfolio of nature-based carbon sinks. TotalEnergies' climate ambition is based on a panel of tangible actions, aiming first to prevent and then to reduce our greenhouse gas emissions, and finally to offset residual emissions."
David Brand, Chief Executive Officer, New Forests, said: "Asia is central to the economic and sustainability transformations happening in the 21st century. Asia has an important role to play in aligning its growth with climate positive, nature positive, and sustainable development outcomes. We appreciate the role TotalEnergies has played in helping to scale investment in the blended finance structure to mobilize more capital towards high social and environmental impact outcomes."
