$200M Forest Investment Targets Carbon Credits and Timber Growth in the U.S.

A $200 million investment initiative backed by Japanese capital is aiming to reshape the U.S. forestry landscape—both economically and environmentally. The new fund, launched through a joint venture between a U.S. forest management firm and the American arm of a Japanese trading company, is designed to generate income from carbon credits and sustainably harvested timber.

Dense American forest with young seedlings in the foreground and forestry workers logging in the distance. AI generated picture.

The venture is focused on acquiring forestland across climate-resilient areas of the United States. According to the companies involved, the goal is to balance financial performance with ecological responsibility through what they describe as ‘climate-smart forest stewardship.’

In a joint statement, the partners explained that the fund will ‘generate returns for investors through sustainable timber production and the development of forest-based carbon credits.’ Backing comes from several sources, including Sojitz Corporation and Fuyo General Lease Co., along with unnamed international investors. The fund is also expected to attract further Japanese participation as it grows.

Koji Aonuma, General Manager of Sojitz’s Energy Transformation Department, emphasised the collaborative nature of the project. ‘By combining EFM’s extensive knowledge and experience with Sojitz’s domestic and international business networks… we aim to form a large-scale fund and create value in collaboration with a diverse range of investors, primarily Japanese companies.’

EFM, which manages forests with an emphasis on long-term climate resilience, incorporates multiple revenue streams from its assets. Beyond traditional timber, the firm includes conservation easements and carbon credits as part of its strategy. It recently signed an agreement to provide Meta with 676,000 carbon removal credits through 2035.

The initiative marks another step in the rising momentum behind forest-based carbon strategies. In 2023, Sojitz also joined a partnership in Japan to generate carbon credits using improved forest management methodologies from Verra. As nature-based investments continue to gain traction, funds like this highlight the growing appetite for solutions that blend profit with environmental purpose.