In recent years, timber investors have shifted focus towards reforestation due to concerns over the effectiveness of carbon credits from existing forests. Interest in the reforestation market has surged in 2024, marked by increased capital commitments and innovative financial products. New investors are now prioritizing reforestation over purchasing existing forests. Various initiatives, such as Aviva Advisors’ Carbon Removal Fund and BTG Pactual’s $1 billion reforestation fund, are emerging to support these efforts. However, risks related to local livelihoods and political instability persist, particularly in tropical regions, prompting cautious approaches to fund sizes and project selection.