Impact investment for saving the climate

Invest your money sustainably today – without exploiting Nature or people! Our Generation Forests have long-term protection and will generate a green return for you.

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Green Finance forest investment

Invest sustainably to tackle climate change

Investing in climate protection is necessary to ensure a sustainable future. At the same time, we need to stop financing activities that are harmful to the climate. One thing is clear: The financial sector is a key lever for climate protection. It is a matter of steering more funds toward having an environmentally-friendly future. Huge investments are needed to realise international climate targets. But this is not just about institutional investors, for you, as a private individual, can also make a significant contribution. By joining together, we can mobilise capital towards a transformation to a closed-loop economy.

Precious tropical timber as a sustainable investment

We are a dynamic, growing cooperative with an innovative forestry concept that combines climate protection with economic returns. Alongside green investments, our project also enables the conservation of species diversity conservation and creates jobs where they are urgently needed. And you, as a member, will benefit from our Generation Forests, as will future generations.

Unmoved by the ups and downs of the stock markets, our trees grow a bit more each day – and these are some of the most precious varieties of timber in the world. Our approach to sustainable investment is patient because the value grows as the trees grow. We rigorously shun all speculative assumptions such as rising prices for timber and land.

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Measurable impact through sustainable forestry

Our afforestation concept is orientated towards the natural rainforest. Our Generation Forests are diverse and profitable at the same time. In contrast to plantations, they represent a permanent species-rich animal habitat, while simultaneously facilitating near-natural, environmentally-compatible forestry operations. So, we use economic resources to play our part in making a better world.

Your outcome-based investment will achieve a measurable impact here! For every euro invested …

More Information

Here you will find a study on the economic viability of varios timbers and the Generation Forest principle.

Cooperative business

Green money through an investment opportunity that positively impacts the world. To that end, we plant and manage permanent forests that will consistently produce exotic timbers such as Mahogany and Spanish Cedar 100 years from now. Our business plan is devised-long term based on our forestry and financial planning. We are convinced of one thing: It is only through long-term thinking that we can make an essential contribution to the goal of sustainability.

The performance of the green return from a share in the cooperative

  • Annual and cumulative distributions (projection) from one cooperative share (500 m2)
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This is how the green return on a cooperative share develops

The graph is based on a model for calculating the economic returns of the generation forest. 
The model assumes the reforestation of a total area of 3,000 hectares over 7 years. It is calculated without assuming timber price increases and inflation. 
The model is subject to the following assumptions:
 
•    the hectares of forest reforested annually, 
•    the tree growth per tree species, 
•    today's timber prices, 
•    today's costs for reforestation,
•     a 25% share of the total costs by the cooperative itself, 
•    the exchange rate of 1 $ =1€ 

and shows a conservatively projected development of the distributions of a share over 100 years. 
The model is tested and adjusted at adequate intervals. 
The left Y-axis shows the amount of the annual distributions in bar form. The right Y-axis is the cumulative sum of these distributions over the years. The X-axis shows the years since the first afforestation. The model is based, as are all of our plans, on the sustainability 100-year principle. 
The expected profit is visible in the sum of the green and gray bars. The green bars correspond to the 4.5% internal rate of return that we expect and communicate. The gray bars correspond to our safety reserve. 
This shows the difference between an optimistic and a conservative scenario. The contingency reserve, if the scenario so occurs, can be used at the appropriate time either to create additional forests or to generate additional distributions above the 4.5% internal rate of return for our members. 
The orange line shows the cumulative distributions per unit. The gray dashed line represents the cumulative distributions including the safety reserve. 
A significantly lower result or even a total loss of the invested capital is possible.

In year 13 after afforestation, the first yield-generating thinning takes place. Before the first distribution to the members can flow, however, the balance sheet of the cooperative must first be positive. Our model assumes that this will likely be the case in 2046. The timing of the commercial thinning* depends, among other things, on the development of the timber price. 
From the year 49 onwards, according to our current model, we expect all our forest areas to have reached the stable permanent forest phase. At this point, thinning* will no longer be carried out, only selective removal of individual trees. We then expect to have a continuous revenue stream from timber sales.
*Removal of large percentages of trees before the permanent phase.
 
As a cooperative, we manage collectively, meaning all members share in these distributions, regardless of when they joined. When subsequent afforestation reach removal dates, the profits from their timber sales are also distributed to all members. Due to this delayed reforestation, the actual distributions will differ from the model graph.

The graph is based on a model for calculating the economic return generated from the Generation Forest. For the purpose of the model, an afforestation of 1,000 hectares of Generation Forest is scheduled for Year 0.

How your money is used

As a social business, we are bound to pursue our mission. We operate on cost basis, and all profits go to our members. Of course, this includes rigorous transparency toward stakeholders and members. We happily share our financial models, operating figures, contracts, property deeds and other documents.

Forest

The largest part of the cooperative capital is used for the construction and maintenance of the forest: Preparation of the soil, planting and care of trees, and management of the forest.
This corresponds to 55 %.

Land

Our cooperative owns all the land used for our reforestation projects. This ensures that our forest will remain forever.
This corresponds to 20 %.

Cooperative

The cooperative uses one quarter for administration, reporting, quality control, auditing, and marketing.
This corresponds to 25 %.

Partnership with 25 years of experience

The Generation Forests concept was developed by our co-founders, Iliana Armién and Andreas Eke, together with the Futuro Forestal team in Panama. The other parties involved included indigenous communities, research institutions, and the United Nations Environmental Programme (UNEP).

The Generation Forest is the realisation of the concept in the form of a cooperative. With Futuro Forestal as a vital partner, we can harness almost 30 years of experience:

  • Top-ranking expertise in the implementation and management of afforestation projects with domestic tree species

  • Over 9 million trees planted (9000 hectares of afforested land)

  • Realisation of more than 50 different social projects in Central America

A summary of the main information

More than a donation

Our cooperative does not work donation-based like many ecological projects, but gives our members the opportunity to contribute with an investment to the preservation of global biodiversity, the loss of forests and the fight against climate change. Not only with our reforestation concept in Panama, but also with our cooperative approach in Germany, we want to show that profitability and nature conservation are not mutually exclusive. They can even go hand in hand and benefit from each other.
The economic approach offers the possibility to take responsibility with a direct participation in a nature-based solution and at the same time to become part of a global community for an economy with and not against nature. Instead of financing a "business as usual" with an investment, you can finance a positive impact for people and nature with an impact investment in our cooperative shares - and furthermore profit from the economic returns of the forest in the long run.

CO2 compensation through an investment in generation forests

By purchasing the cooperative share, you are not only achieving a financial return but an ecological one, too. And our VERRA certification also tells its own story: we satisfy the Verified Carbon Standard. This means that for each share, the forest will absorb an average of 1 t CO₂ over the years. Perhaps you think your share will only achieve this many years from now, after the land has to be purchased, saplings planted, and the trees allowed to grow. In fact, your cooperative share makes you an owner of the entire forested area belonging to the cooperative. The cooperative principle means that everyone jointly owns the entire forest stock – mature trees and young ones. So, you are making an impact from Day 1. And all of us are delighted that you, through your commitment, are enhancing our positive impact on the climate even more over the long term.

Forestry investing with no fixed term – where is something like that available?

Our aspiration: is to create Generation Forests that last forever. The concept produces long-term returns, in contrast to plantations, where the entire planting is usually harvested, and the resulting returns bring the investment term to an end. Since we are in the tropics, tree species comparable to oaks in Germany grow very fast. Not after 60-100 years, but already after 25 -45 years.
We are anticipating the first profit distributions to take place in 2046, i.e. 27 years following the initial afforestation. At future points, these precious trees will be fully grown, and the established ecosystem will be more stable, meaning that regular profit distributions may be anticipated over the long term. According to our model, after 40 years, a share should generate more profit distributions than today's investment of 1,495.00 euros, meaning the profit distributions that are cumulated over the years. The forests remain ecologically and economically productive. So it’s worthwhile staying involved for the long term.

How is the actual yearly growth in value determined?

Under the law of cooperatives, shares in a cooperative are treated differently from company stock. Their value can neither rise nor fall. Each cooperative share corresponds to 500 m² of permanent mixed forest, afforested with the money paid in on every share.

The most important factor in the increase in value is the growth of the trees. This growth, combined with other factors, determines future profits. The biological growth of the forest is measured regularly by our forestry manager.

An economic analysis of the tree stock and estate is performed by independent third parties annually. An independent expert verifies the growth data of our projects. The anticipated value appreciation corresponds to the ‘admission fee’ additionally payable by every member together with the purchase of the share.
 

Internal rate of return

An internal rate of return is applied to investments that produce irregular yields. The internal rate of return describes the (theoretical) average annual return

The internal rate of return refers here to the value appreciation of our forest, which automatically “gains” in value through its natural growth. However, this does not mean that we earn an annual profit. Instead it merely establishes our one-off admission fee of 4.5% per share, which increases from year to year. Once we generate yields from our harvesting and we have a positive balance sheet, foreseeably in 2046, these will then be paid out. 
 

Admission fee for fair distribution of profits

The forecast increase in value appreciation of all our forests is reflected in the admission fee. This admission fee must be paid once on acquiring new shares or topping up existing ones. This is important and fair because future yields will be distributed among all members on an equally – regardless of when they joined the cooperative.

•    One cooperative share costs €1,200.
•    An additional admission fee of €295 is payable in 2023.
•    All in all, a new member pays €1,495.
 

Future profits

Future profits from cooperative shares are essentially dependent on the future performance of timber prices. A range of factors are significant here:

•    Volume growth and shape of the trees
•    Timber price performance
•    Demand for (tropical) timber
•    Changes in forestry costs
•    Changes in cooperative’s costs in Germany

In making our profit forecasts, we ignore criteria such as inflation and increasing timber prices.
However, the demand for timber has significantly increased globally. That is causing timber prices to rise.
 

With 28 euros you can change the world!

Join us today, and start immediately helping to make a change, including with smaller amounts from just €28 per month. We have a range of payment models available so you can purchase cooperative shares even with limited savings. You can pay for shares with a one-time payment or by instalments stretching over 1, 2 or 4 years. 
The best thing about it: even if the period is 4 years, you’ll be a member straight away. So, year by year CO₂ is reduced, jobs created, biodiversity enhanced and the quality of soil and water improved. And the longer you stay with us, the longer the whole endeavour will remain effective. 

Opportunities and risks

The currently assumed value appreciation is based on calculations and analyses, as well as on our forestry manager’s 25 years of experience. To achieve the most realistic growth forecasts possible, we only use prices and costs based on today's figures. We deliberately ignore speculative assumptions about possible price increases or inflation.

Nevertheless, these forecasts, measurements and practical experience empirical evidence are no guarantee of future value appreciation. Given the various economic, political and not least, ecological factors, it is not possible to ever rule out uncertainties and risks, which can even result in the total loss of the capital invested.

Our forestry partner has over 25 years’ experience in tropical forestry. He reports any emerging risks to us, and manages them on-site with great diligence and personal responsibility.

More information on the subject is available here. 

One other important aspect: Our forest is a non-cash asset meaning it is not affected by inflation.

Cost transparency

It takes money to manage the cooperative, and perform forestry protection and afforestation activities. In contrast to finance providers, as an organisation our cooperative earns no money. We operate on a cost-covering basis. Our forestry service provider operates on a costs basis and receives a transparent payment per hectare per year. It receives a contractually agreed share of 3.75% of future timber returns. In this way, we can achieve a strong convergence of interests of the cooperative members and the forestry partner with full transparency – a  new phenomenon in forestry investment.

Fair tropical timber – The value of our forests

The advantage of tropical trees is that they grow faster and absorb CO2, fetch better prices on the timber markets, and the afforestation process is easier compared to forests in Germany and Europe.

Our carefully selected portfolio of more than 20 different species of tree, especially domestic ones, offers a range of fast and slow-growing tree species. They form the core of our Generation Forests. Our sustainable tropical timber and our sustainable business practices have been awarded the FSC® stamp.

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    Cedrela odorata

    Spanish cedar
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    Swietenia macrophylla

    Mahogany
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    Simarouba Amara

    Marupa
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    Manilkara bidentata

    Bulletwood
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    Platymiscium pinnatum

    Macacauba
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    Dalbergia retusa

    Cocobolo
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    Maclura tinctoria

    Mora
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    Dipteryx oleifera

    Cumaru
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    Tectona grandis

    Teak
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    Astronium graveolens

    Tiger wood
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    Calophyllum brasiliense

    Santa Maria
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    Carapa guianensis

    Andiroba
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    Terminalia amazonia

    Golden cedar
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    Hieronyma alchorneoides

    Pilón
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    Tabebuia rosea

    Roble
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Why we invest in Panama

There are political, economic, logistical, and climatic reasons for our choice of location. Panama is a solid part of the international community, and offers reliable framework conditions. In contrast to temperate zones, forests grow quickly in the tropics. This gives our members a dual advantage: Making a greater impact in terms of environmental and climate protection, and the faster, more efficient growth of their investment.


We are an enterprise that is firmly rooted in Panama through our co-founders and partners. We cultivate good relations with a range of local stakeholders. For decades now, moreover, Panama has held a progressive political stance towards afforestation projects. It was this policy that saw the launch of the "Allianza por el millión" afforestation initiative. As a cooperative, we are the first non-Panamanian enterprise to join this initiative.

  • Investment protection agreement between Germany and Panama 
  • US dollar as stable national currency
  • Stable democracy with strategic importance for global trade 
  • Tax exemption for profits from afforestation projects
  • Government bond ratings: Baa1 (Moodys), BBB+ (S&P)