11 Oct 2021
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Real Assets
Are U.S. low carbon fuel standards driving a structural change in oilseed demand that could support farmland returns?
Low carbon fuel standards are U.S. state-level programs that seek to reduce emissions of carbon dioxide and other pollutants from transportation fuels. Several fuel sources offer compliance within this scheme, including charging stations for electric vehicles and ethanol. However, one fuel type, renewable diesel, possesses chemical attributes that simplify the switch to low carbon fuel for refiners and motorists alike. In this paper, potential implications for oilseed demand and farm margins stemming from low carbon fuel standards and the expansion of renewable diesel refining capacity are analyzed.
Over the next four years, the U.S. will see renewable diesel refining capacity more than quadruple so that refiners and distributors can achieve compliance and supply low carbon transportation fuel in LCFS states.
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An expanding timberland market brings new opportunities
Growing demand for wood products and the broad set of environmental benefits, like carbon sequestration and biodiversity conservation from forests, are driving forces expanding the timberland investable universe.
Real Assets
Nuveen Natural Capital – Global Sustainability Strategy and Policy
NNC believes that its land-based investments can help meet global demand for food, fiber, and timber while contributing to the mitigation of climate and nature-related challenges.
Real Assets
Timberland’s expanding investable universe
The benefits that timberland can bring to a portfolio depend critically on the scale of the allocation and investment selection – and these are decisions that can only be made with a clear understanding of the investable universe.
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy, and
is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest
any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors. The
views and opinions expressed are for informational and educational purposes only as of the date of production/writing and may change without notice at any time based
on factors such as market conditions or legal and regulatory developments. All information has been obtained from sources believed to be reliable, but its accuracy is not
guaranteed. This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections,
forecasts, estimates of market returns, and proposed or expected portfolio composition. Any changes to assumptions made in preparing this material could have a material
impact on the information presented herein. Past performance is no guarantee of future results. Investing involves risk; principal loss is possible. This information
does not constitute investment research as defined under MiFID. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed.
There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be
relied on as such.
A word on risk
As an asset class, agricultural investments are less developed, more illiquid, and less transparent compared to traditional asset classes. Agricultural investments will be subject to risks generally associated with the ownership of real estate-related assets, including changes in economic conditions, environmental risks, the cost of and ability to obtain insurance, and risks related to leasing of properties. Nuveen provides investment advisory solutions through its investment specialists.
A word on risk
As an asset class, agricultural investments are less developed, more illiquid, and less transparent compared to traditional asset classes. Agricultural investments will be subject to risks generally associated with the ownership of real estate-related assets, including changes in economic conditions, environmental risks, the cost of and ability to obtain insurance, and risks related to leasing of properties. Nuveen provides investment advisory solutions through its investment specialists.
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