FIM Commentary
Page: 1 | 2 >11/03/2013 - Press Release: Wind Market Attractiveness - March 2013
The energy markets in established renewable energy generating countries are experiencing a period of change, with both governments and consumers seeking to reduce energy prices as budget deficits grow and energy bills increase.However this downward pressure on prices is being offset by the continued focus on the growth of renewables and clean energy. This focus is mainly coming from requirements on governments and companies to be ‘green’.
FIM believes the market for long term investments into renewables/clean energy remains strong, especially in the UK.
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06/03/2013 - Press Release: FIM's Summary of Global Timber Demand
FIM’s paper Global Timber – Future Value (December 2012) predicted that demand for industrial roundwood could increase by as much as 48% from current levels by 2020.Indufor’s research suggests demand growth could be much more substantial. Indufor’s most likely scenario forecasts demand for industrial roundwood increasing by 154% from current levels by 2030.
The research confirms that timber will be in increasingly short supply and availability of natural timber will be subject to ever increasing constraints. The outlook for timberland owners remains strongly positive. Click here for more info..
05/03/2013 - Press Release: EU bans the importation of illegally harvested timber
FIM’s view is that the ever increasing constraints on timber supply, at a time when demand is forecast to increase by nearly 50% by 2020, will result in higher timber prices for forest owners.The EU Timber Regulation (EUTR) came into force on 3 March 2013 implementing a ban on illegally harvested timber and timber products onto the EU market. It requires those companies that place wood or wood products on the EU market to exercise due diligence in order to mitigate the risk that the timber has been harvested illegally. This due diligence process has to be undertaken even if the product is certified. In determining the level of risk, credible information about the country of origin, the supplier and the product must be assessed.
FIM’s paper (Global Timber – Future Value, Dec 2012 www.fimltd.co.uk) forecasts demand for industrial roundwood increasing by nearly 50% from current levels by 2020. This increase in demand for timber will coincide with ever increasing constraints on supply, one of which is legislation.
Timber has traditionally been supplied from natural resources with readily accessible supplies having been depleted through exploitation. Currently only circa 8% of the global forest area is certified, mostly in Europe and North America. Forest certification will increasingly impose a management and replanting cost on harvesting operations, which will increase the cost of exploitation.
Legislation such as the EUTR and the Lacey Act in the USA confirm a move towards sourcing sustainable, certified timber and aims to restrict illegal logging, which is thought to account for 8% to 10% of global wood supply (although groups such as the WWF believes this figure is closer to 40%).
FIM believe this will restrict global supply and, coupled with rising demand, should have a positive impact on timber prices for certified, sustainable forest owners.
05/03/2013 - Press Release: FIM Timber Summary March 2013
FIM's summary of new timber markets for Baltic countries; a US housing recovery; and China's continued growth. Click here for more info..30/11/2012 - Press Release: Tree Health Update
There has been much coverage in the press recently on tree diseases in the UK and their potential impact on the nation's trees. Click here for more info..01/09/2012 - Press Release: FIM Client’s forest wins top prize at the Scottish Finest Woods Awards
FIM Services Limited is delighted to announce that one of their client’s forests won the top accolade at The Scottish Finest Woods Awards in recognition of the creation of a 434 hectare commercial plantation. Click here for more info..11/04/2012 - Press Release: FIM Paper: A Green Revolution or a waste of time?
Click here for more info..28/06/2011 - Press Release: FIM acquires South Wales wind farm
FIM has bolstered its onshore wind farm portfolio with the acquisition of the Mynydd Portref wind farm. Click here for more info..22/03/2011 - Press Release: 'Small is beautiful' for onshore wind farm investors
THE “abandonment” of onshore wind by the UK’s big six energy companies represents a golden opportunity for private investors, an expert says.Richard Crosbie Dawson, managing director of renewables investment specialist FIM Services (FIM), believes the main utility companies such as Centrica, E.ON, RWE nPower, EDF, Scottish Power and Scottish & Southern Energy are now focusing on developing offshore wind farms – opening up onshore investment.
He said: “The abandonment by the big utilities of onshore in favour of offshore wind means there is a major investment opportunity in onshore wind farms in the 10MW to 25MW range.
“There are now fewer players in the market for these smaller facilities, and the planning system is becoming less burdensome so more are coming online all the time.
“Potential investors should be in no doubt that it is smaller onshore wind farms that will provide the best return on their money over the next decade.”
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