Potential for UK portfolio investors to finance sustainable tropical forestry
Sustainable forestry, which aims to produce sustained yields of timber while simultaneously maintaining the environmental and social benefits of forests, is currently being promoted as an alternative to destructive land uses such as unregulated logging and unplanned conversion to agriculture of tropical forests. In part because of the newness of the concept of sustainable forestry, there has been little implementation to date. The availability of public sector funds from developed countries that could be used to help implement sustainable forestry in developing countries is declining. However, private capital flows (portfolio investment and foreign direct investment) are increasing rapidly. The objective of this study is to determine whether portfolio investment, the major component of private capital flows, is likely to fund sustainable forestry in tropical countries.