Rainbow Eucalyptus, is the only species of eucalyptus that grows in the northern hemisphere and is normally grown for its pulpwood, used to create white paper. But why does it look like it’s been painted? The secret behind the Rainbow Eucalyptus is that the trees shed multiple patches of bark every year, but not at the same time. As the patches are gone, the green inner bark is exposed, and as it matures it turns bluish, then orange, purple and maroon. This creates the rainbow effect.