Investing in Forests: A Scalable Solution to Climate Change
Yishan Wong of Terraformation outlines how restoring biodiverse forests offers one of the most effective and immediate solutions for carbon capture, while creating economic opportunities through innovative financing strategies.
At the 2024 Climate & Sustainability Leadership Summit, Yishan Wong, CEO of Terraformation, takes the stage to present a case for a less traditional, but increasingly important, form of climate investment: forest restoration. Drawing on his tech background, which includes stints at companies like Facebook and PayPal, Wong pitches forests—specifically biodiverse, native forests—as one of the most powerful tools for combating climate change while providing economic returns through carbon markets and sustainable land use.
“I spent most of my career scaling tech platforms, but now I’m focused on scaling trees,” Wong tells the audience. His pivot from Silicon Valley to forest restoration may seem surprising, but he’s driven by the same principle: solving big problems with scalable solutions. "Restoring forests isn’t just about planting trees," he says. "It’s about scaling a solution to one of the world’s biggest problems—climate change."
The Case for Forest Restoration
For Wong, forest restoration is one of the most effective strategies for removing carbon dioxide from the atmosphere. He highlights the advantages of native, biodiverse forests, which he says are far more resilient and beneficial than monoculture plantations. “Monocultures—where a single species of tree is planted in rows—don’t hold up well over time,” he explains. “They’re vulnerable to disease, pests, and environmental stress.”
By contrast, native forests—comprising a variety of tree species suited to local ecosystems—provide long-term carbon storage, support biodiversity, and help mitigate the impacts of climate change. "Forests aren’t just trees. They’re ecosystems," Wong says. "And those ecosystems can be incredibly resilient when they’re biodiverse."
While the benefits of restoring forests are well-documented, Wong notes that scaling these efforts fast enough to combat climate change remains a challenge. Terraformation’s solution is its Forest Accelerator program, which supports local forestry teams by providing funding, seeds, and technical expertise to jump-start reforestation projects across five continents.
“It’s not just about throwing seeds in the ground,” he says. "We’re creating long-term ecosystems that support local communities, create jobs, and regenerate the land."
Overcoming the Financial Bottleneck
Wong emphasizes that the real bottleneck to scaling forest restoration isn’t the science, but the financing. “Billions of dollars are sitting on the sidelines, ready to be deployed into nature-based carbon projects,” he says. “But the process of funding these projects is slow and piecemeal. We need a new model.”
Wong advocates for portfolio-based financing, which would allow investors to spread risk across multiple forest restoration projects, instead of relying on the success of individual efforts. “This approach diversifies risk and gets more projects off the ground faster,” he explains. “If one project hits a snag, the others keep moving forward.”
This model, Wong argues, could help accelerate investment in forest restoration at a critical time. "The demand for high-quality carbon credits is growing, and forests provide some of the best credits available," he says, pointing out that businesses and governments are increasingly looking to offset their emissions through carbon credits generated by reforestation projects.
Carbon Markets and Financial Returns
Wong also highlights the economic potential of carbon credits, which allow companies to purchase credits to offset their emissions. As voluntary carbon markets rebound, the demand for high-quality credits—like those generated by reforestation—is rising. Wong notes that stricter standards and methodologies are improving the credibility of the market, making it more attractive to investors.
“The voluntary carbon market could be worth $10 to $40 billion by 2030,” Wong says. “And the best carbon credits come from projects that actually remove carbon from the atmosphere—like afforestation and reforestation.”
Not all carbon credits are created equal, Wong warns. While some credits are based on reducing or avoiding emissions, reforestation credits, which directly remove carbon from the air, offer the most impact. Yet, these projects currently make up just 5% of the market, presenting what Wong calls a “huge opportunity” for investors.
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A Call for Collaboration
Wong stresses that the success of large-scale reforestation projects depends on collaboration between the public and private sectors. Terraformation partners with local forestry organizations, indigenous communities, philanthropies, and governments to tackle the logistical and financial barriers to forest restoration.
“These projects need to last for decades, not just a few years,” Wong says. "We use science, technology, and local expertise to make sure these forests thrive in the long run."
By engaging communities in reforestation efforts, Wong adds, Terraformation’s projects not only sequester carbon but also support local economies and help protect biodiversity. “Forests create jobs, provide clean water, and increase resilience to climate impacts like floods and droughts,” he says.
Why Invest in Forests?
For Wong, the argument for investing in forest restoration goes beyond environmental stewardship—it’s also a smart business move. "Forests are infrastructure," he says. "Investing in forests is an investment in long-term stability for our climate, ecosystems, and economies."
Wong points to the growing demand for high-quality carbon credits as a key driver of financial returns for reforestation projects. But, he emphasizes, the benefits extend well beyond carbon markets. “Forests support biodiversity, water security, and local livelihoods. They provide essential ecosystem services that benefit everyone,” he says.
By creating sustainable ecosystems that provide both environmental and economic value, Wong believes that forest restoration offers a rare opportunity to invest in a solution that addresses multiple global challenges at once. “This isn’t about waiting for some new technology to save us. Forests are a solution we can start working on right now.”
The Urgency of Action
Wong’s message to business and government leaders is clear: The time to invest in forests is now. “We are living through one of the most consequential periods in human history,” he says. “The decisions we make today will shape the world for generations to come.”
With climate change accelerating and the window for meaningful action shrinking, Wong urges leaders to act decisively. “Forests are already capturing carbon, restoring ecosystems, and supporting communities. All they need is the capital and the willpower to scale.”
For Wong, investing in forests isn’t just about financial returns—it’s about ensuring a livable future for the next generation. “This is an investment in life itself,” he says. “In a planet that can sustain not just us, but the biodiversity we depend on.”
Wong’s message to investors and policymakers is simple: Forest restoration offers a unique opportunity to combine environmental responsibility with economic value. The potential is enormous, but the window to act is closing fast. "If we act now," he says, "we can make a real difference—for the climate, for our communities, and for our future."
>>> WATCH THE VIDEO OF THE PRESENTATION SESSION HERE: