Biocarbon Engineering is one of many companies that make up the expanding restoration economy, businesses that have landscape restoration at the core of their customer value proposition. WRI and The Nature Conservancy (TNC) analyzed more than 140 companies in this space to understand how companies are making money from restoring land. Among these, 14 companies, whose median sales growth reached 100 percent in 2017, are showcased in a new report titled The Business of Planting Trees: A Growing Investment Opportunity.
While these companies represent just a small subset of the broader sector, they showcase the diversity of business opportunities. Companies involved in the restoration economy range from early stage, pre-revenue startups to timber funds that manage billions of dollars. Similarly, the goods and services produced by these companies vary widely as well, from biofuels to climate-smart credit systems to green infrastructure.
For example:
- Guayakí reinvented the traditional Argentinian “yerba mate” drink for the American market in the form of ready-to-drink teas and energy drinks. Since yerba mate is best grown in the shade, the company partners with small farmers and indigenous communities in Argentina, Brazil and Paraguay to regenerate the Atlantic rainforest and grow yerba mate under the rainforest canopy. With this market-driven restoration approach, Guayaki reached $60 million in sales in 2017.
- EcoPlanet Bamboo aims to alleviate the pressure on natural forests by developing sustainable bamboo as an alternative timber and fiber source for major industrial markets, including for toilet and tissue paper, renewable packaging materials for the food and beverage industry, and construction and housing materials. The company has plantations in Nicaragua, South Africa and Ghana, and expects to produce 280,000 tons of raw fiber per year by 2024.
- New Forests is a Timber Investment Management Organization whose investment strategies include ecosystem restoration in the United States, as well as sustainable forestry in Australia, New Zealand and Southeast Asia. New Forests currently manages $3 billion in timberland assets, with 39 percent of the area managed for conservation outcomes and the remainder used for sustainable timber production.
