Wednesday 19 December 2012

Consider How important Trees are for our everyday needs?




Consider How important Trees are for our everyday needs?


If you consider the situation with the depletion of our natural forests, it is not hard to foresee how it is massively important to start the process of afforestation projects.


Oil, Gas, Iron Ore etc.,etc. can (ultimately) all be replaced with alternatives no matter how unstable the world may become due to their scarcity. However, trees are not a natural resource that can be depleted to near extinction. Obviously, we need them to exist. Unless, we as a race, find an alternative to oxygen!


Logically, it can be seen that trees will, in fact, be more precious and usable in the future, especially within an ever growing population.


Why?
Well think of all the uses of trees.


Heat
Wood to many people is still the primary source of heat.
Going back to basics, wood was the first material used for heating and at present it is making a marked comeback in the form of wood pellets for their use within industrial power generation and also within the home using wood burning stoves. This is not just in the industrialised countries but also, increasingly, within developing nations. Charcoal is still, a regulary used form of fuel for heating and cooking. Wood is recognised as an environmentally safer material when contrasted against other raw materials i.e. oil or coal. With the cost of oil, coal and gas increasing, it is also economically viable.




Construction
It seems obvious that wood will remain the main source material in the construction industry. What is likely to replace it? As population and demographics explode this will put a massive strain on supply and demand. Unless, that supply is illegally sourced from existing forests causing further depletion to one of our greatest natural resources.




Furniture
I would suggest that the need for wood in this sector is likely to increase further as man-made materials are in some way linked to the expensive raw material, Oil. We know oil can't last forever. It won't be long before it is just too uneconomic to use Oil. Unlike wood, Oil takes many thousands of years to form.


Paper
This is likely to rise and then fall in demand as most text will be electronic. However, packaging and tissue usage will likely increase. This is a reality and again linked to population and economic issues. Paper is likely to be a major industry for many years to come.


Transport
Consider how many pallets are used to transport goods worldwide and within a local economy. Again, what is a likely alternative.


With worldwide government intervention trying to halt illegal logging and also with the introduction of Carbon Credits as an Asset class, I believe that the afforestation of large swathes of land is likely and necessary. Don't forget timber is the worlds third biggest commodity traded.


Thought? If carbon emissions are a major factor in #climate change and #trees are a major sequester of carbon why don't we plant more trees?




Forestry Plantations are potentially a solid long term investment. You can find information of Sustainable Forestry Investments at www.silvinvest.co.uk

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