A new $200 million fund backed by Japanese capital is set to acquire and manage forestland across the United States, with the goal of generating both carbon credits and sustainable timber revenues. The fund, launched through a partnership between a US-based forest asset manager and the American arm of a Japanese trading group, is designed to support environmentally-resilient forestry while offering long-term returns to global investors.
View of young tree seedlings in the foreground with forestry workers harvesting timber in a dense American forest in the background. AI generated picture.
The fund is designed to deliver dual returns: environmental and financial. Through the strategic acquisition and management of forestland, the venture aims to generate revenue from both timber and carbon credits. According to the companies, the approach ‘promotes climate-smart forest stewardship’ while helping advance broader sustainability goals.
‘The fund will focus on acquiring and managing forestland in climate resilient forested regions of the United States, generating returns for investors through sustainable timber production and the development of forest-based carbon credits’, the partners said in a joint statement.
Initial backing for the fund comes from Sojitz itself, Fuyo General Lease Co. of Japan, and other unnamed global investors. The venture is also expected to attract additional investment from Japanese corporations via Sojitz’s extensive domestic and international networks.
Read more: Tech giant, green giant: How Microsoft leads the way in carbon offsets
‘By combining EFM's extensive knowledge and experience with Sojitz's domestic and international business networks, built through its existing businesses, we aim to form a large-scale fund and create value in collaboration with a diverse range of investors, primarily Japanese companies’, said Koji Aonuma, general manager of Sojitz's Energy Transformation Department.
EFM, which manages forest assets through a ‘climate-smart’ lens, aims to diversify forest revenues beyond traditional timber to include carbon credits and conservation easements. The company recently signed a deal with Meta to provide over 670,000 nature-based CO₂ removal credits through 2035.
This is not Sojitz’s first foray into carbon credits. In 2023, it joined a consortium of Japanese firms working with the city of Hamamatsu to produce credits under Verra’s improved forest management methodology—highlighting the company’s growing commitment to nature-based solutions. The fund underscores a rising trend: Global investors are increasingly drawn to forest-based carbon projects as they look to combine long-term returns with measurable environmental impact.
Read more: DGB’s cookstove projects: How they truly make a difference
As interest in nature-based solutions accelerates—highlighted by large-scale investments in forest carbon initiatives—our approach stands apart. Unlike many players in the market, DGB Group designs and develops its own carbon projects from the ground up, ensuring real-world impact anchored in measurable outcomes. From reforestation to sustainable land use and verified carbon unit generation, our work is rooted in transparency and long-term ecological value. Explore how you can be part of this growing movement.
