PA MediaA total of £50m has been set aside for the creation of new woodland and forestry management by the Scottish National Investment Bank.
The bank says the fund will support widescale new tree planting over the next five years, generating returns through the sale of timber.
It is investing in the sustainability fund of forestry managers Gresham House, who oversee about 140,000 hectares of woodland around the world.
Any trees harvested by the fund will be replanted, with the timber providing raw materials for packaging and construction.
The fund will also generate carbon credits which can be used to offset emissions.
Eilidh Mactaggart, CEO of the Scottish National Investment Bank, said: “The bank is delighted to cornerstone this new sustainable forestry fund focused on new and diverse planting in Scotland.
“Gresham House is an experienced forestry fund manager, and we are very excited to support them in this new venture.
“The new planting element and ability to generate carbon credits represents a novel investment proposition which mainstream investors have yet to fully embrace.”
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