Global Carbon Markets, Prices, and Linkages to the Forestry Sector

22nd September 2021

The carbon markets can be split into two categories: the compliance markets and the Voluntary Carbon Markets (VCM). Compliance markets were initially started under the UNFCCC Kyoto Protocol (2005-2020) which introduced three market-based mechanisms: Emission Trading (ET), Clean Development Mechanism (CDM), and Joint Implementation (JI). The 2015 Paris agreement, ratified in 2016 brought more tools to the markets such as green financing and trading in green bonds. In addition to these systems, a significant number of countries have implemented a carbon tax.

Satellites and Forests

14th September 2021

Margules Groome regularly uses up-to-date satellite imagery to assess aspects of forests. COVID-19 travel restrictions resulted in us using this technology to its fullest extent in lieu of forest site visits.
According to the United Nations Office for Outer Space Affairs,[1] there were 7 389 individual satellites in space at the end of April 2021 and that number is increasing each year.[2] The Union of Concerned Scientists, as of 1 May 2021, estimates that there were about 4 084 active satellites orbiting the Earth.[3] The implication being that there are thousands of unused satellites orbiting the Earth.

Investment in African Forests – The Importance of Value Chain Information

9th September 2021

There is currently renewed interest amongst investors in forestry projects in Africa.  Several existing forestry enterprises such as KOMAZA in Kenya have succeeded in raising new capital investments in 2020, while development finance institutions and other investment funds are looking for new investment opportunities.  Carbon projects and timber processing seem particularly attractive.  

Margules Groome Continue to Support NFI in Guyana, South America

19th August 2021

National Forest Inventories (NFI) play a critical role in sustainable forest management, economic development, and carbon accounting, and many countries throughout the world are realising substantial benefits from long-lived NFI data. A robust sampling design, detailed measurement protocols, and a valid and well-planned calculation pathway are key to ensuring that the full benefits from NFI investments are realised.

Tighter Global Lumber Markets

9th August 2021

Anyone who recently bought sawn lumber will know that prices are high this year. This is felt globally, but nowhere more than in North America where average prices for 2021 are more than twice their long-run average levels (Figure 1), although US prices have come back down in June and July. Prices are also high in New Zealand, due to elevated sawlog export prices, and strong demand for lumber for everything from fruit pallets to house framing. While this is welcomed by forest owners and sawmills, it is driving costs in construction and packaging, leaving many producers and buyers globally to wonder when lumber prices will return to normal.