Singapore state-owned investment firm Temasek Holdings Pte is backing a new southeast Asian forestry fund as the city-state looks to increase a carbon tax on its biggest emitters.
Temasek is among investors including Sumitomo Mitsui Trust Bank that are investing US$120 million ($162.8 million) into the New Forests Tropical Asia Forest Fund 2, according to Sydney-based New Forests Chief Executive David Brand. He anticipates an annualized return of between 14% and 18% over its 10-year life.
The investment comes as Singapore plans to ratchet up the tax it charges on green-house gas pollution to $25 a ton from $5 when it was first implemented by 2024. New Forests, founded in 2005, is a nature-based real assets manager with about A$7.7 billion ($5.6 billion) in assets including timber plantations and conservation areas that restore the ecosystem.