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Temasek Holdings invests in southeast Asian forestry fund as carbon tax looms

Bloomberg
Bloomberg3/3/2022 10:48 PM GMT+08  • 2 min read
Temasek Holdings invests in southeast Asian forestry fund as carbon tax looms
Temasek is among investors including Sumitomo Mitsui Trust Bank that are investing in the New Forests Tropical Asia Forest Fund 2
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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.

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