In general, the biomass of a mature forest hectare is estimated to be around 200-400 metric tons per hectare, although this can be significantly higher or lower depending on the forest type. Tropical rainforests have the highest biomass densities, with some estimates reaching up to 600 metric tons per hectare, while boreal forests have lower biomass densities, around 150-200 metric tons per hectare. This can also vary greatly within regions.

A number of elements contribute to FLS^® being highly sustainable:

Long time horizon: FLS^® intends to bring a long-term view to the forestry investment market, until now dominated by closed-ended private equity funds. FLS^® will aim at providing permanent capital to the industry.

Perpetual replanting: First, FLS^® will plant trees on degraded and depleted land, currently used by unsustainable cattle farming and burned every year. Following a harvest, FLS^® will systematically replant the harvested trees.

Conservation areas: All existing forests and riverbanks will be kept as they are today. In addition, FLS^® will extend the conservation area to 20-25% of all land purchased (in the short-term), where FLS^® will work closely with a specialized, local NGO expert in nature conservation. The long-term goal is to gradually increase the area under conservation to over 30%, meeting the target agreed byparticipants to COP15 in Montréal in December 2022.

Accreditation: All forests planted by FLS^® will be certified under an international sustainability standard.

Positive ESG effects: FLS^® will make sure that positive ESG effects are realized by establishing a baseline for CO₂ sequestration and biodiversity, and ensuring regular stakeholder consultations take place with independent monitoring as well as adherence to IFC Performance Standards 6 and 7. First analysis points to 11 UN SDG being achieved through our first project. Besides social benefits, a particular emphasis will be put on increasing the biodiversity of the land acquired, starting with the conservation areas to be rewilded.

Some of the main advantages of Nature-Based Solutions compared to Technology-Based Solutions include:

Cost: NBS can often be more cost-effective than TBS, especially in the long term. For example, reforestation and afforestation projects, which involve planting and caring for trees, can be less expensive than building and maintaining carbon capture and storage (CCS) facilities.

Sustainability: NBS can be more sustainable and have fewer negative impacts on the environment compared to TBS. For example, afforestation and reforestation projects can improve soil health and increase biodiversity, while CCS facilities can have significant energy and water requirements.

Flexibility: NBS can be more flexible andadaptable than TBS. For example, afforestation and reforestation projects can be implemented in a wide range of locations and ecosystems, whereas CCS facilities may be limited to certain locations due to technological constraints or the availability of free geothermal energy.

Multiple benefits: NBS can often provide multiple benefits beyond carbon sequestration. For example, reforestation and afforestation projects can improve air quality, provide habitat for wildlife, provide timber for local use (thereby helping to prevent further deforestation) and reduce erosion and flooding.

Proven: NBS have been around forever and represent a proven way of sequestering carbon dioxide. TBS are still in their infancy, in particular with respect to their potential to scale up and to provides afe and cost-efficient storage.

One notable drawback of Nature-Based Solutions is the requirement to change the use comparably large swathes land to implement them at scale.

It's worth noting that both Nature-Based Solutions and Technology-Based Solutions have their own advantages and disadvantages, and the most effective approach to carbon capture and storage will likely involve a combination of both.

FLS^® establishes (i) a viable business model for both wood production and conservation, two essential ingredients for climate change mitigation, and (ii) a large investment market for scalable forestry investments by fixed income investors. As such, unlike philanthropy, it provides a positive financial and ESG return to investors.

FLS^® creates permanent capital for this nascent asset class, called “sustainable forestry investment”, transcending traditional seven- or even fifteen-year closed-end private equity funds, offering exit opportunities through the capital markets for investors with a shorter term horizon.

Definitely. Commercial reforestation and conservation projects both involve planting and caring for trees in order to sequester carbon dioxide from the atmosphere. Some potential advantages of commercial reforestation projects compared to pure conservation projects are:

Economic benefits: Commercial reforestation projects generate employment to local communities and revenue to investors through the sale of timber, pulp wood, sawn lumber, biochar and other forest products.

Sustainability: Commercial reforestation projects can be more sustainable than pure conservation projects if they are well-managed and prioritize the long-term health and productivity of the forest. For example, responsible forestry practices can ensure that forests are managed in a way that maximizes carbon sequestration and minimizes negative impacts on the environment. From a low baseline of cattle farming on depleted land, it is obvious that sustainability, CO₂ sequestration and biodiversity will all be significantly enhanced by commercial reforestation.

Multiple additional benefits: In addition to sequestering carbon, commercial reforestation projects can provide a range of other benefits, such as supporting local economies, providing habitat for wildlife or improving air and water quality (UN SDG).

As both commercial and conservation projects have their respective strengths and weaknesses, we at FLS believe that the combination of both allows for the best of both worlds: commercial forestry allows for the efficient production of wood and its derivates, without which primary forests will continue to be destroyed as large amounts of wood are needed for cooking, heating and many industrial activities.

Yes, FLS^® has three main ESG goals: (i) the sustainable production of certified wood and derivates required by a growing global population; (ii) significant and fast sequestration of CO₂ required to mitigate climate change; and (iii) the achievement of further environmental and social benefits, such as biodiversity and multiple UN SDG.

We firmly believe that these goals do not prevent us from also delivering an adequate financial return to the institutional investors who are themselves trustees for the funds invested in FLS^® projects.

IFC Performance Standards 6 and 7 as well as the work of the World Business Council for Sustainable Development (WBCSD), a former co-chairman of which sits on our board, serve as our guidelines.

Given continued emissions of CO₂e for years to come, in particular by China, India and other emerging nations, compensating those additional annual emissions is a must reflected by ‘net zero’ commitments by an increasing number of companies and organizations. At the same time, the higher concentration of CO₂ in the atmosphere, currently standing at 420ppm as of November 2022 (source: climate.nasa.gov) must urgently be tackled as well, since it will lead to a warming climate for years to come even if net zero is achieved, potentially leading to ‘tipping points’ of as of yet unknown effect.

Without technological and nature-based solutions, achieving carbon sequestration at scale seems impossible today. Reforestation and afforestation may be one of the most significant drivers.

For the registration of carbon (and biodiversity) certificates/labels, FLS will work with the established market leaders and has conducted a pre-feasibility study.

First of all, our most important partners are our investors, both in our projects and in our company. Without an unequivocal alignment of interests and constant interaction between all parties directly involved in FLS^® success would not be achievable.

Additional partners are leading forestry operators in all countries in which we are active, local NGOs who have an established track record in nature conservation, local schools and universities to provide benefits to local stakeholders, independent monitoring and verification agents, and finally, renowned lawyers, tax specialists and accountants, some of whom we have worked with for decades.

For additional questions, kindly contact:

·        Alessandro Materni

·        Bernd Reuther

·        Charlie Sichel

The International Union for Conservation of Nature (IUCN) adopted the definition of NBS as “actions to protect, sustainably manage, and restore natural or modified ecosystems, that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits.”

Nature-Based Solutions for carbon capture and storage (CCS), also known as carbon sequestration, involve using natural processes or ecosystems to remove and store carbon dioxide from the atmosphere.

The Verified Carbon Standard (VCS) is a voluntary standard for the development, quantification and verification of greenhouse gas reduction projects. The VCS is designed to provide a consistent, transparent, and credible framework for the measurement, monitoring and reporting of emissions reductions, and removals, as well as the issuance of carbon credits that represent these reductions. The VCS is used by a wide range of organizations, including companies, governments, and non-governmental organizations, to offset their emissions through the purchase of carbon credits.

The VCS is administered by Verra, and it is recognized as one of the leading standards for voluntary carbon credits. The VCS is used as the basis for a number of other carbon offset programs and standards, including the Gold Standard and the Carbon Offset and Reduction Scheme for International Aviation (CORSIA). The VCS is constantly being updated and refined to ensure that it remains relevant and effective in supporting the transition to a low-carbon economy.

Verra is a non-profit organization that works to advance sustainable development through the use of market-based approaches and the development of global standards and frameworks. Verra is known for its work on the Verified Carbon Standard (VCS), a global standard for voluntary carbon credits that allows companies, governments, and other organizations to offset their greenhouse gas emissions by investing in emissions reduction projects around the world.

The Food and Agriculture Organization of the United Nations (FAO) is a specialized agency of the UN that works to improve food security and reduce poverty through sustainable agriculture and forestry. The FAO was established in 1945 and is headquartered in Rome, Italy.

The FAO works in over 130 countries around the world, and it has a mandate to support the sustainable development of the agriculture, forestry, and fisheries sectors. The FAO provides technical assistance, policy advice, and capacity building to governments, civil society organizations, and other stakeholders in these sectors. It also conducts research and provides information on a wide range of issues related to food and agriculture, including food security, food safety, nutrition, rural development, and sustainable resource management.

In addition to its work on the ground, the FAO also plays a leading role in international policy discussions on food and agriculture. It participates in the negotiations of international agreements, such as trade and investment agreements, and it contributes to the development of global standards and guidelines for food and agriculture. The FAO works closely with other UN agencies, as well as with non-governmental organizations and the private sector, to address the complex and interrelated challenges facing the agriculture and food sectors.

The United Nations Framework Convention on Climate Change (UNFCCC) is an international treaty that was adopted by the United Nations General Assembly in 1992. The UNFCCC is designed to address the problem of climate change by establishing a framework for international cooperation to reduce greenhouse gas emissions and stabilize the concentration of these gases in the atmosphere. The ultimate goal of the UNFCCC is to prevent dangerous anthropogenic (human-caused) interference with the climate system.

The UNFCCC has been ratified by nearly all countries in the world, including all major emitters of greenhouse gases. Under the UNFCCC, countries are required to regularly report on their greenhouse gas emissions and their efforts to reduce them. The UNFCCC also establishes the international mechanisms through which countries can cooperate to address climate change, including the Clean Development Mechanism, the Joint Implementation mechanism, and the Kyoto Protocol.

In addition to its role in international climate negotiations, the UNFCCC also provides a forum for countries to share information and best practices on climate change, and it supports the development and transfer of clean technologies. The UNFCCC is supported by a number of other organizations, including the Intergovernmental Panel on Climate Change (IPCC), which assesses the scientific basis for climate change, and the United Nations Environment Programme (UNEP), which provides technical and financial support to countries in their efforts to address climate change.

The Forest Stewardship Council (FSC) is an international non-profit organization that promotes responsible management of the world's forests. The FSC has developed a set of standards and principles for responsible forest management, which it certifies through a third-party auditing process. FSC-certified forests are managed in a way that meets the social, economic, and ecological needs of present and future generations. FSC certification is often used as a way for companies and individuals to demonstrate their commitment to sustainability and responsible resource use.

The Forest Stewardship Councilhas a decentralized structure for setting standards for responsible forest management. TThe FSC standards are developed through a participatory process that involves a wide range of stakeholders, including forest managers, indigenous peoples, community groups, environmental organizations, and industry representatives.

The FSC has a number of standard-setting committees that are responsible for the development and maintenance of the FSC standards. These committees are made up of experts from a variety of fields and are representative of the diverse interests of the FSC's stakeholders. The committees work through a consultative process that involves public consultation and review, and the standards are subject to periodic review and revision to ensure that they remain relevant and effective.

Overall, the FSC's standard-setting process is designed to be transparent, inclusive, and responsive to the needs of all stakeholders. It is intended to ensure that the FSC standards reflect the best available scientific knowledge and the collective wisdom of the FSC's diverse stakeholders.

The Programme for the Endorsement of Forest Certification (PEFC) is an international non-profit organization that promotes sustainable forest management through the use of third-party certification systems. As of 2021, PEFC had certified approximately 300 million hectares of forest globally.

Corresponding adjustments (CA) are amechanism used in the context of international climate change agreements to ensure that countries that have agreed to reduce or eliminate their greenhouse gas (GHG) emissions do not have an unfair competitive advantage over countries that have not made similar commitments.

Under the Paris Agreement, which is a global agreement to combat climate change and limit global warming to well below 2 degrees Celsius, countries are required to submit Nationally Determined Contributions (NDCs) outlining their commitments to reduce GHG emissions. These commitments are meant to be ambitious and reflect each country's fair share ofthe global effort to combat climate change.

However, some countries may be concerned that their domestic industries could be at a competitive disadvantage if they reduce their GHG emissions while other countries do not. To address this concern, the Paris Agreement includes provisions for corresponding adjustments, which allow countries to take action to level the playing fieldfor their domestic industries.

There are several different approaches that countriescan take to implement corresponding adjustments, such as implementing border carbon adjustments, which are charges or rebates applied to imported goods based on the carbon content of their production process. Other approaches include sectoral approaches, which are measures that apply to specific sectors of the economy, and the use of climate-friendly technologies and practices,which can help to reduce GHG emissions and improve competitiveness.

The Sustainable Forestry Initiative (SFI) is a non-profit organization that promotes sustainable forest management practices in North America. As of 2021, the SFI program covers approximately 358 million hectares of forest in the United States and Canada, which represents about 19% of the forests in those countries.

SFI sets standards for responsible forest management and works with landowners, forestry professionals, and other stakeholders to promote the sustainable management of forests. It also provides third-party certification of forests and wood products that meet its standards. SFI's certification program is recognized by a number of organizations, including the Forest Stewardship Council (FSC), which is an international organization thatsets standards for responsible forest management and certifies forests and woodproducts that meet those standards.

The World Business Council for Sustainable Development (WBCSD) is a global, CEO-led organization of over 200 leading businesses working together to accelerate the transition to asustainable world. The organization was founded in 1995 and is headquartered in Geneva, Switzerland.

The WBCSD works to promote sustainable development through its member companies, which represent a range of industries and sectors. The organization also works with partners and stakeholders, including governments, civil society organizations, and academia, to advance sustainable development and drive change in key areas such asenergy, water, cities, and mobility.

The WBCSD's vision is to create a world where the business of business contributes to the health and prosperity of people and the planet. Its mission is to provide business leadership as a catalyst for change, and to support its member companies in addressing the major sustainability challenges facing the world today. The organization aims to achieve this through a combination of research, advocacy, and the development and sharing of best practices and tools.

Article 6 of the United Nations Framework Convention on Climate Change (UNFCCC) is a provision in the treaty that deals with the use of international cooperative mechanisms to address climate change. It sets out rules and procedures for the development and implementation of cooperative mechanisms such as the Clean Development Mechanism (CDM), Joint Implementation (JI), and the International Emissions Trading (IET).

Article 6 also includes provisions on the transparency of information and reporting, as well as provisions on the use of the financial resources provided under the Convention to support the implementation of cooperative mechanisms.

The overall goal of Article 6 is to facilitate the implementation of the UNFCCC and the achievement of its objectives through international cooperation and the exchange of ideas, knowledge, and technology. It is an important tool in the global efforts to address climate change and to achieve the Paris Agreement's goal of limiting global warming to well below 2°C.

A.    IFC Performance Standards

IFC (International Finance Corporation) Performance Standard 6 is a set of guidelines that outlines the environmental and social risks and impacts associated with a development project, and provides guidance on how to effectively manage and mitigate those risks. It is designed to help ensure that development projects are implemented in a sustainable manner and in accordance with international best practices.

Performance Standard 6 covers the following areas:

1.     Biodiversity conservation and sustainable natural resource management: This includes measures to protect and restore biodiversity, as well as to manage natural resources in a sustainable manner.

2.     Land acquisition and involuntary resettlement: This covers the process of acquiring land for development projects, and includes measures to minimize the impact on communities and to provide adequate compensation and support to affected individuals.

3.     Indigenous peoples: This covers the rights and needs of indigenous communities, and includes measures to ensure that their rights are respected and that they are consulted and involved in the decision-making process.

4.     Physical cultural resources: This covers the protection of physical cultural resources, such as archaeological sites, and includes measures to ensure that they are preserved and managed in a sustainable manner.

5.     Stakeholder engagement and communication: This covers the process of engaging and communicating with stakeholders, including communities, governments, and other interested parties, and includes measures to ensure that their views and concerns are taken into account.

Performance Standard 6 is an important tool for ensuring that development projects are implemented in a way that is socially and environmentally responsible. It provides a framework for managing and mitigating risks and impacts, and helps to ensure that projects contribute to sustainable development.

IFC (International Finance Corporation) Performance Standard 7 is a set of guidelines that outlines the environmental and social risks and impacts associated with the operation of a project, and provides guidance on how to effectively manage and mitigate those risks. It is designed to help ensure that projects are operated in a sustainable manner and in accordance with international best practices.

Performance Standard 7 covers the following areas:

1.     Chemical and waste management: This covers the management of chemicals and waste associated with a project, and includes measures to minimize the risks and impacts to human health and the environment.

2.     Pollution prevention and abatement: This covers measures to prevent and control pollution, and includes the use of best available technologies and practices to minimize environmental impacts.

3.     Resource efficiency and pollution prevention: This covers measures to improve resource efficiency and to minimize pollution, including through the use of cleaner technologies and practices.

4.     Occupational health and safety: This covers measures to protect the health and safety of workers and other stakeholders, and includes the development of policies and procedures to prevent accidents and injuries.

5.     Community health and safety: This covers measures to protect the health and safety of communities and other stakeholders, and includes the development of policies and procedures to prevent accidents and injuries.

Performance Standard 7 is an important tool for ensuring that projects are operated in a way that is socially and environmentally responsible. It provides a framework for managing and mitigating risks and impacts, and helps to ensure that projects contribute to sustainable development.