Investments in nature is a new trend of investment in the twenty-first century. These kinds of investments aim at environmental conservation with the long-term goal of deriving financial value from those conservations. Some of the outstanding nature investment initiatives include the forestation of areas without forest cover.
In this case, the trees that are planted in such areas are considered resilient and can thus grow in any climatic conditions even those considered as adverse for most trees. Some of the most used trees for this kind of investment include the teak wood, blue gum, bamboo, acacia among others. The consideration for this investment type is the ability of the vegetation to grow in adverse climatic conditions and within a very short period of time.
The main aim of using fast growing vegetations for areas that are without vegetation cover is to primarily conserve the environment from adverse effects of deforestation such as soil erosion. The fact that these vegetation types will grow rapidly in such areas would imply that the harvesting can be done within a very short period of time and this will offer a quicker return on investment for the investors.
The consideration also has to be for the vegetation type that has more than one value for the investors. For some of these trees, for instance, they can be used to provide alternatives for timber. The leafy parts of the vegetation can also be used to provide fodder for the livestock. The trees grown can also offer good source of extracts that can be used in the making of medicines and perfumes.
The other investment type in nature investment is plantation management. In this investment type, the aim is to introduce the use of the most sophisticated ideas and technology in the day to day management of plantations. This investment type seeks to help farmers reap maximum benefits from their plantations.
It should also be noted that this investment type only seeks to manage plantations and is not responsible for offering any agricultural advice beyond what is grown in the plantation. This product can be used for the creation of new plantations as well as for the management of existing ones. The plantation owner should, however, make it very clear to the investors what they intend to have grown in the plantation and for what period of time the plantation should be managed as well as how they want the farms to be managed during that period of plantation management.