France Valley, based in Paris, has announced the establishment of a €200 million ($214 million) fund dedicated to afforestation, reforestation, and revegetation (ARR) projects across Europe. CEO Arnaud Filhol shared this news, highlighting the growing interest in carbon removal investments.
Landscape view of The Orleans Forest in France. AI generated picture.
Unlike the trend focusing on high-priority tropical regions in Asia, Africa, and Latin America, France Valley is banking on Europe's secure land rights and high biodiversity interest. Filhol believes Europe's future carbon prices will make afforestation a worthwhile investment.
The EU is nearing completion of its Carbon Removals and Carbon Farming legislation, potentially integrating ARR projects into the EU Emissions Trading Scheme. This could boost the viability and appeal of such projects. Currently, European ARR prices range between €30 and €45 per tonne of carbon dioxide equivalent, depending on project location and carbon scheme.
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Filhol pointed out the challenges faced by forest carbon funds in the southern hemisphere, such as population relocation and alternative local activities. Europe, however, offers lands that are often unsuitable for agriculture, minimising such issues.
France Valley targets ARR projects registered under Verra's Verified Carbon Standard, Gold Standard, and France's Label Bas Carbone. It has partnerships with foresters in Estonia, France, Ireland, Latvia, Lithuania, and Spain.
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The company plans to purchase degraded lands with no active users, plant trees, and integrate these areas into existing carbon projects. Filhol emphasised the importance of selecting appropriate land plots for long-term tree growth.
The fund complies with local regulations, limiting the types of trees planted to ensure projects yield maximum carbon removals over 15 years and preserve species diversity to withstand environmental adversities.
As one of Europe's largest forestry funds, France Valley has expanded its investments beyond timber and housing into nine countries over the past two years. France Valley's fund is aimed at professional investors, with annual value assessments by forestry and finance auditors. Corporate clients and intermediaries interested in rising carbon removal prices are expected to be key investors.
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