15 billion trees are cut down every year and wildfires burn down 840 million acres (340 million hectares) of vegetated land globally.
by
Livia Formisani
03 February 2020
5 min read
by
Livia Formisani
03 February 2020
5 min read
Those are just two of many aspects affecting the number of remaining trees in the world. In addition to releasing oxygen and capturing CO2, thus fighting climate change, trees also filter air pollutants, prevent mudslides and erosion, gather and purify water, protect us from extreme weather conditions and cool down urban areas. They are paramount to life and take time to grow, two factors making them a very precious resource.
Replanting trees — a process known as reforestation — is a long and complicated endeavor, as it is mostly done by hand. An important component of land restoration, reforestation helps recover degraded soils, rebuild damaged ecosystems and protect biodiversity. As governments on a global scale look to cut their carbon dioxide emissions and years of monoculture farming leave soils depleted of minerals and nutrients, restoration has become an economic matter as much as an environmental one. In fact, the restoration economy is growing, attracting at least $2 billions in private capital per year. New companies are entering the market, introducing technologies to restore land more quickly and effectively and attracting consistent investments.
Aiming to plant one billion trees per year, UK-based Dendra Systems is using an innovative approach to reforestation: drones. Lauren Fletcher, Dendra Systems CEO and former NASA engineer, started the ambitious project in response to increasing deforestation and its contributions to climate change. “I understood why forests were coming down so fast, but I was really puzzled as to why it was so hard to put them back together,” Fletcher said. He came to see hand-planting —slow, time-consuming and grueling work— as a major obstacle. As opposed to hand-planting, which typically puts 3,000 seeds per day in the ground, drones can disperse 36,000 seeds a day. “By planting at the scale we’re looking at, we can make a real long-term impact”, he said.
Guided by satellite images, the drones first perform a scan of the area to replant, surveying its existing biodiversity, topography and potential obstructions. Each drone then shoots seedpods into the ground, covering 2.5 acres (1 hectare) of land in 8 minutes, 150 times faster and 4 to 10 times cheaper than traditional methods. Compared to traditional aerial seeding methods by plane and helicopter, drones have a higher success rate, as they fly much lower, don’t move as much air and can work in inaccessible areas. What’s more, the technology can easily be scaled to cover very large areas in short periods of time.
Since starting commercial operations in mid-2017, Dendra Systems has executed reforestation projects in Canada, Myanmar, Australia, New Zealand and the UK. They are currently working in several other countries. And they are not alone: companies such as U.S.-based DroneSeed are following suit.
A 2015 study compiling the first estimate of the size of U.S.’s restoration economy concluded that it produced $9.47 billion in direct economic output in 2014, directly employing about 126,000 people. New technologies could increase these figures at an exponential rate.
“Broadly speaking, technologies are accelerating the speed, scale, and scope of restoration possible. There is significant untapped potential in large-scale restoration, and by investing in research and developing new technologies, companies are beginning to realize this potential in various ways. They do, for instance, by enabling lower-cost, rapid tree planting in inaccessible terrain, improving survival rates of planted seedlings, facilitating financial flows to restorative practices, and more,” says Andrew Wu, research analyst at the World Resources Institute, and co-author of “The Business of Planting Trees: A Growing Investment Opportunity“, a report examining 14 successful businesses in the restoration economy.
At the moment, some investors still hesitate to join in: many (but not all) opportunities in this sector require long investment-time horizons. This is also an entirely new, and risky, market. “One key aspect of the restoration sector is the lack of an established investment track record. Because the sector is relatively new, investors may have more challenges gauging the projected performance of an investment, and are likely to be more conservative in their evaluations,” said Wu.
The good news is that restoration initiatives are working, as the United Nations Environment Programme recently announced. In fact, the Global Landscapes Forum and the United Nations Environment Programme are currently seeking U.N. support to declare a “Decade of Ecosystem Restoration 2021-2030.” In addition to that, initiatives such as the Bonn Challenge, which are bringing countries together to coordinate and guide reforestation efforts, are gaining momentum.
THIS WEBSITE (AND THE INFORMATION CONTAINED HEREIN) DOES NOT CONTAIN OR CONSTITUTE AN OFFER OF SECURITIES FOR SALE, OR SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OR IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) OR FOR THE ACCOUNT OR BENEFIT OF ANY U.S. PERSON AS THAT TERM IS DEFINED IN THE SECURITIES ACT (A "U.S. PERSON"), AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH AN OFFER OR SOLICITATION WOULD REQUIRE THE APPROVAL OF LOCAL AUTHORITIES OR OTHERWISE BE UNLAWFUL (THE "OTHER COUNTRIES"). THE SECURITIES REFERRED TO HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR PURSUANT TO THE CORRESPONDING REGULATIONS IN FORCE IN AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR THE “OTHER COUNTRIES” AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO A U.S. PERSON UNLESS THE SECURITIES ARE REGISTERED UNDER THE SECURITIES ACT, OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IS AVAILABLE. NO PUBLIC OFFERING OF SUCH SECURITIES IS INTENDED TO BE MADE IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR IN THE “OTHER COUNTRIES.”
In any Member State of the European Economic Area ("EEA"), the information contained in this website is only directed at and may only be communicated to persons who are "qualified investors" ("Qualified Investors") within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the "Prospectus Regulation").
The information to which this website gives access is directed only at persons (i) who are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) who have professional experience in matters relating to investments falling within Article 19(5) of the Order or (iii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which this communication relates is only available to relevant persons and will be engaged in only with relevant persons, or in the EEA, with Qualified Investors. Any person who is not a relevant person, a Qualified Investor or otherwise permitted under applicable law or regulation to access the information, should not act or rely on the information contained herein.
Confirmation of Understanding and Acceptance of Disclaimer
These materials are for informational purposes only and are not directed to, nor are they intended for, access by persons located or resident in the United States, Australia, Canada, Japan or South Africa or any of the Other Countries. I certify that:
I am not resident of, or located in, the United States, Australia, Canada, Japan or South Africa or any of the Other Countries or I am not a U.S. Person; or
If I am a resident of, or located in, the EEA, I am a Qualified Investor within the meaning of Article 2(e) of the Prospectus Regulation; or
If I am a resident of, or located in, the United Kingdom, I am a Qualified Investor and a relevant person.
I have read and understood the disclaimer set out above. I understand that it may affect my rights. I agree to be bound by its terms and I am permitted under applicable law and regulations to proceed to the following parts of this website.
WARNING: the above certification constitutes a "self-certification" pursuant to Decree of the President of the Italian Republic No. 445 of 28 December 2000. False certifications are punishable by law.
You must read the following information before continuing.
The information contained in this segment of the website is not intended for, and must not be accessed or distributed or disseminated to persons resident or physically present in the United Kingdom, Canada, Australia, Japan or any other jurisdiction in which it is unlawful to do so. The information also is not intended for, and must not be accessed or distributed or disseminated to persons resident or physically present in Italy who are not “qualified investors” (investitori qualificati), as defined in Article 2, letter e) of Regulation (EU) 2017/1129 (the “Prospectus Regulation”) pursuant to Article 1, fourth paragraph, letter a) of the Prospectus Regulation as implemented in Italy by Article 35, paragraph 1, letter d) of CONSOB regulation No. 20307 of February 15, 2018.
By clicking the button below labeled “I agree”, you are certifying that (A) if you are in the European Economic Area, you are a “Qualified Investor”; (B) you are not accessing this portion of the website from the United Kingdom, Australia, Canada or Japan; (C) if you are a resident or physically present in Italy, you are a qualified investor as defined under the Prospectus Regulation as implemented in Italy by Article 35, paragraph 1, letter d) of CONSOB regulation No. 20307 of February 15, 2018; and (D) you are not located in a jurisdiction where it is unlawful to access this portion of the website.
You acknowledge that the information and statements contained in the document you are accessing on this website speak only as of the date of such document (or such other date(s) specified therein), and such information and statements may become inaccurate, stale and/or out-of-date thereafter and should not be relied upon for any investment decision.
You acknowledge that the materials on this website that you are accessing are confidential and intended only for you and you agree you will not forward, reproduce, copy, download or publish any of such materials (electronically or otherwise) to any other person if this is not in accordance with the law.
You acknowledge that the access to information and documents contained on this portion of the website may be illegal in certain jurisdictions, and only certain categories of persons may be authorized to access this portion of the website. If you are not authorized to access the information and document contained on this portion of the website or you are not sure that you are permitted to view these materials, you should leave this portion of the website.
You acknowledge that no registration or approval has been obtained and Eni Gas e Luce S.p.A. società benefit and its affiliates assume no responsibility if there is a violation of applicable law and regulation by any person.
By clicking the button below labeled “I agree”, you are confirming that you have read and understood the disclaimer above.
If you cannot so confirm, you must exit this portion of the website