EFM, a forest investment and management firm, announced a new joint venture with Sojitz Corporation, through its 100% subsidiary Sojitz Corporation of America, which will establish a forestry investment fund to generate high-integrity carbon credits and promote climate-smart forest stewardship across the United States. The new entity, EFM Sojitz Management, LLC (ESM), will manage the fund and aims to raise approximately $200 million, with initial participation expected from Sojitz, Fuyo General Lease Co., Ltd. and other global investors.
The fund will focus on acquiring and managing forestland in climate resilient forested regions of the United States, generating returns for investors through sustainable timber production and the development of forest-based carbon credits.
EFM’s climate-smart approach diversifies the revenue streams from forests to include carbon credits and conservation easements alongside revenue from traditional forest products. This model supports forest management practices that restore timber stocks, increase the production of high-value wood products, generate enduring climate, community, and ecological benefits – such as salmon habitat restoration, recreational access, non-timber forest products, tribal cultural use, and improved carbon sequestration.
EFM has been at the forefront of innovative forest carbon market approaches, including implementation of the latest improvements for Improved Forest Management (IFM) projects that deliver high integrity carbon credits recognized for their co-benefits. The new fund will enable investors to benefit from EFM’s climate-smart approach, as well as receive carbon credits generated from sustainably managed forestlands.
Sojitz considers decarbonization one of the most important management issues, establishing its Energy Transformation Division in 2024 to accelerate the development of renewable energy and offset solutions. The joint venture with EFM reflects Sojitz’s commitment to advancing global climate goals through collaborative, nature-based approaches.
EFM will engage a diverse group of investors, particularly from Japan and other international markets, in collaboration with Sojitz. Through this effort, the partners aim to unlock new capital flows into climate-smart forestry, drive innovation in natural climate solutions, and contribute meaningfully to global sustainability objectives.
EFM is an investment and management firm that acquires forests and implements climate-smart strategies in the Pacific Northwest and beyond. EFM creates value by combining timber production with revenues from carbon sequestration, conservation, recreation and biodiversity.
