Why the World’s Billionaires Are Rushing to Buy Forests

• Bill Gates is the biggest owner of farmland in USA with over 242,000 acres, spread out over 18 states.
• A Chinese tech billionaire has acquired 280,000 hectares of North American forests.
• Swedish billionaire Johan Eliasch bought 4 lakh acres of Amazon rainforest.
• Our very own billionaire Ambani owns 3,500 acres Vantara forest in Gujarat.

No more lavish penthouses and vineyards, the forest buying spree comes amid a surging demand for “natural capital” investments. World over, family offices and asset managers are scrambling to access forestry, agriculture, timber, and carbon-credit-based assets as part of a shift to a green economy.

Wealth of the Future

The reason is simple. The ultra-rich of the world have figured out where the wealth of the future lies – Carbon Credits.

The global market for carbon credits is projected to be a multi-billion-dollar industry, attracting large investments from corporations and governments.

Carbon credits are called the "next gold" as it represents a new asset class.

In 2023, global carbon credit market was worth $479 billion, estimated to reach a staggering $4.7 trillion in next 5-7 years, making it one of the largest and fastest-growing asset classes

As the world moves toward net-zero goals, the demand for these credits is surging, particularly from corporations seeking to meet sustainability targets and balance their carbon footprints.

The high-value projects across the world, to offset their carbon footprint would seek carbon credits and those owning forests and farmlands generating premium carbon credits will reap the benefit as they will monetize emission reductions.

Conservation Or Colonialism In The Name Of Nature

While the rich investors describe their multibillion-dollar wealth investment in forests as environment conservation, it has also sparked a debate about “green colonialism” and whether private ownership of vast swathes of land is the right path to global conservation.

If the motive is social benefit - Why not buy degraded lands and use the wealth to rehabilitate it and restore its flora and fauna?

As per McKinsey Carbon credit trading could be worth more than $50 billion a year by 2030. And, this is where global billionaires are putting their bets and money.

So, what on surface may seem as philanthropy of raising elephants or saving the nature, may actually be just another smart investment.