Potential and Investment Attractiveness of Implementing Climate Projects on Disturbed Lands

Svetlana S. Morkovina, Nataliya V. Yakovenko (), Sergey S. Sheshnitsan, Denis Kuznetsov, Anton Shashkin, Alexander Tretyakov and Julia Stepanova
Additional contact information
Svetlana S. Morkovina: Faculty of Economics, Voronezh State University of Forestry and Technologies Named after G.F. Morozov, 8 Timiryazev Str., Voronezh 394087, Russia
Nataliya V. Yakovenko: Faculty of Economics, Voronezh State University of Forestry and Technologies Named after G.F. Morozov, 8 Timiryazev Str., Voronezh 394087, Russia
Sergey S. Sheshnitsan: Faculty of Economics, Voronezh State University of Forestry and Technologies Named after G.F. Morozov, 8 Timiryazev Str., Voronezh 394087, Russia
Denis Kuznetsov: Faculty of Economics, Voronezh State University of Forestry and Technologies Named after G.F. Morozov, 8 Timiryazev Str., Voronezh 394087, Russia
Anton Shashkin: Faculty of Economics, Voronezh State University of Forestry and Technologies Named after G.F. Morozov, 8 Timiryazev Str., Voronezh 394087, Russia
Alexander Tretyakov: St. Petersburg Research Institute of Forestry, 21 Institutsky Ave., St. Petersburg 194021, Russia
Julia Stepanova: Faculty of Economics, Voronezh State University of Forestry and Technologies Named after G.F. Morozov, 8 Timiryazev Str., Voronezh 394087, Russia

Sustainability, 2024, vol. 16, issue 19, 1-24

Abstract: Forest restoration projects can be categorized as climate projects, investments in the implementation of which exceed the investment costs of forest-climate projects, which reduces their attractiveness to investors. An algorithm for assessing investment costs of climate reforestation projects on disturbed lands has been developed. The potential of territories for the implementation of such project initiatives is available in all regions of Russia and amounts to more than 381 thousand hectares. For five studied polygons of disturbed lands (Kuzbass basin, Moscow basin, Western Siberia basin, as well as basins of Chelyabinsk and Belgorod Regions), the aggregated costs for the implementation of measures to create carbon-depositing plantations and ground cover were calculated. Investment costs for restoration of 1 hectare of disturbed land under the climate project vary from 82.6 thousand rubles to 116.9 thousand rubles. Cost analysis shows that the carbon intensity of investment in such projects on disturbed lands is quite high (Ccii > 1.0). The highest investment potential is observed in the Kuzbass basin, where Ccii is 2.01. To organize and implement the afforestation project on disturbed lands of the Kemerovo Region, investments in the amount of 66.7 thousand rubles/ha for capital expenditures and 24.7 thousand rubles/ha for current expenses will be required. The payback period of such an investment project, taking into account the discount rate, is 13.1 years, and during the study period (20 years) the income from the project will cover 228% of the spent funds. These data confirm that the investment potential of forest-climatic projects on disturbed lands is quite high.

Keywords: forestry; climate projects; project activities; investment costs; disturbed lands (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/16/19/8562/pdf (application/pdf)
https://www.mdpi.com/2071-1050/16/19/8562/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2024:i:19:p:8562-:d:1490984

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().