Layers of Value
In order to stitch this partnership together and produce as sustainable investment process, GreenTrees recognized that the creation of a forest produces layers of value. Some we can price today, others we cannot.
In order to capture all the values, GreenTrees employs a concept called ACRE (Advanced Carbon Restored Ecosystem). The ACRE is a series of ecological assets which represent all the values and attributes associated with one acre of restored property. ACRE's value stream is rooted in a common, traditional denominator—one acre of property.
ACRE is an appreciating asset that produces valuation and uneven revenue streams. Investors will purchase these assets for a period of time through a lease of rights rather than fee simple ownership of land. The rights of the ACRE translate to an equivalent number of acres of land the investor's money will touch.
In turn, private landowners receive income as the stock change is quantified each year. The faster the trees grow the faster the incomes flow to the landowner. And as a result, conservation is an outcome of a business.
“What we want to do is provide balance. Balance for the environment as we go forward and this kind of initiative [GreenTrees]…is exactly what we want to do. Our company is 180 years old. We think in long-terms…this is a great program. It support the Mississippi Delta and that’s important to Norfolk Southern and it is important to this country.”
—CEO Norfolk Southern Railways