When Corekees founder Nick van Heesewijk visited the Pongamia tree project in Paraguay back in 2016, he had the foresight to see that this was going to be a big deal. When he returned home to the Netherlands, he teamed up with his cousin Tamar and Corekees was born. Corekees believes that the only way to achieve long-lasting results with sustainability is to make it profitable. Corekees created impact through its mission to create a more sustainable world by making sustainability financially viable.
The Pongamia reforestation project in Paraguay is the perfect solution to help us to reach that goal. This project combines financial returns with carbon offsetting, biofuel production, and creating local jobs for local people. For investors, contributing to this exciting project is easy and it also delivers a more than reasonable return! Let’s look at how Corekees makes investing in trees easy.
Why Invest In Tree Planting?
Tree planting is one of the best things we can do to combat climate change. Deforestation is happening all over the world at an alarming rate as trees are cleared for farmland and human development. This accelerates climate change, which is already causing unprecedented crises across the globe.
The area where Corekees plants its Pongamia trees is in the Gran Chaco, the second-largest nature reserve in the world. This area sees over 200 square kilometers of forest disappear every month. By carrying out reforestation in these areas, Corekees works to restore this landscape to a more natural state, allowing the ecosystem to recover and thrive while combating the effects of climate change.
Why The Pongamia Tree?
You might be asking yourself - what is a Pongamia tree, and why is it so special? Here’s a quick lesson. The Pongamia tree can be found across native to eastern and tropical Asia, Australia, and the Pacific islands. It has also been cultivated elsewhere in the world, including in Africa and the United States.
As well as being extremely hardy and able to grow in the most unpromising soil, this rather unassuming tree doesn’t need pesticides or irrigation to grow. It thrives in humid and subtropical environments and has a dense root network and thick taproot, making it drought tolerant. In short, the Pongamia tree is a farmer’s dream. Like all trees, it removes carbon from the atmosphere and converts it into oxygen. In fact, one tree offsets over 40kg of carbon dioxide every year, which is essential if we want to reverse the damaging effects of climate change.
Along with all these benefits, the Pongamia tree also produces nuts packed with protein and oil, which is very similar to soybeans and can be processed into high-protein animal feed and, most excitingly, biofuel, a sustainable alternative to fossil fuel. And the best part is that the Pongamia tree has the potential to produce more nutrition per acre than soybeans. Corekees also doesn't need to cut its trees down to make use of them, they simply harvest the nuts, and as these trees are known to live for over a hundred years, it really is a long-term investment.
By 2050, the agricultural sector will need to feed two billion more people than it does today. Being able to grow another profitable crop where you can't grow anything else is priceless.
How Do I Invest With Corekees?
One Pongamia tree with Corekees is one bond with a (nominal) value of €20. To put it simply, you lend Corekees the funds to buy, plant, and maintain Pongamia trees for the first four years, after which the trees typically produce nuts. They’re completely open about their fees - of every €20 you invest, 34% is used to pay Corekees’ overheads, as well as a management fee of 5%. The remaining funds are dedicated to buying, planting, and looking after the trees. You then receive the proceeds of the nuts from your trees in the form of returns, which consist of repayment of your loan and interest on the borrowed amount.
The return calculation is based on the volume of the nuts from trees and the price per kilogram of nuts. After deducting costs, the average return per year, per tree, is 7.8%. Corekees’ online calculator allows you to work out your profits based on your investment and how many kilograms of carbon dioxide you’ve removed from the atmosphere because of your investment. So you know exactly where your investment is going, what you can expect in return, and the positive impact your investment will have on the environment. It really is that easy.
Tree planting and reforestation is our best weapon when it comes to combating climate change. Corekees’ Pongamia trees have the added benefit of being able to grow almost anywhere with very little assistance and produce a useful oil that can be processed into biofuel. This means that their trees don’t take up space on more productive land that we desperately need to grow as much food as possible for the planet’s burgeoning population. The Pongamia can also replace crops that are notorious for causing deforestation, like soy and palm oil. Reducing agricultural emissions by 75% by 2050 in line with the Paris Agreement is a big ask, but the Pongamia tree can help us get there.
The sustainability and world-saving credentials of tree planting projects is clear to see, but there are other positives to investing in trees. It’s a great way to diversify your stock market portfolio alongside your investments such as shares, crowd loads, or property, which is always a wise move. So not only can you invest your money and diversify your portfolio, but you can also offset your own carbon emissions and benefit the wider environment. We often think that we as individuals can’t do much to stop deforestation and climate change - with Corekees, you can!
Do you want to know more about investing in Corekees and their tree planting project in Paraguay? Then download their information brochure or contact them directly. Nick, Tamar and their team will be happy to assist you.