JAYAPURA, INDONESIA – New Forests Pty Limited has entered into a Memorandum of Understanding (MOU) with the Provincial Government of Papua, Indonesia, to establish a carbon project based on Reduced Emissions from Deforestation and Degradation (REDD). New Forests is a Sydney-headquartered investment management and advisory services firm specializing in environmental markets. Emerald Planet Limited is also a partner in the agreement and will contribute to project implementation, particularly Indonesian political and community relations.
“There is a high level of interest in establishing pilot projects for forest conservation based on carbon finance,” David Brand, Managing Director of New Forests, said. “The project aims to deliver high-quality carbon credits to the voluntary market based on the government’s decision to rescind the logging and agribusiness development status of the land.”
The MOU, signed by Brand, Papuan Provincial Governor Barnabas Suebu and Tobias Garritt, CEO of Emerald Planet, is oriented toward creating a perpetual financial base for local communities. This enables financing of community services and sustainable development on a long-term basis. Final selection of a project site will occur within the next two months followed by a period to negotiate contractual relationships and investment entities. The parties are assessing three project areas ranging in size from 300,000 hectares to one million hectares.
REDD has been a key topic in the international debate over actions needed to address climate change. This has been driven by reports and analysis from the Intergovernmental Panel on Climate Change citing that deforestation contributes approximately 20% of global greenhouse gas emissions annually. Concern over the loss of biodiversity in the world’s tropical rainforests is another concern driving the development of business models that make forest conservation commercially viable.
“Conversion of these spectacular forests to agribusiness would be a great loss,” Governor Suebu said. “I hope this approach can provide a new development path for the forests and people of the Province of Papua.”
New Forests Pty Limited
New Forests is a forestry investment management and advisory services firm currently managing over $150 million in timberland and environmental assets. The company’s investment thesis is unique in seeking assets that deliver traditional timber returns, as well as returns from emerging environmental markets and preferences, such as certified timber, carbon, biodiversity and water. In addition to world-leading forestry investment expertise in the areas of acquisitions, modelling, operations, silviculture and ecosystem services, New Forests is at the forefront of evaluating opportunities and commercializing environmental products from emerging environmental markets. The company is headquartered in Sydney, Australia, with offices in Washington DC and San Francisco and holds an Australian Financial Services License. For more information, please see www.newforests.com.au.
Emerald Planet Limited
Emerald Planet focuses on the creation of companies that act as a catalyst for change and satisfy the global requirement for new forms of ethical investment, including environmental technology, renewable energy, greenhouse gas reduction and land use. Since the early 1990’s these companies and technologies have been helping to address climate change by way of greenhouse gas reductions and carbon offsets for individuals, companies and governments. In Indonesia, Emerald Planet is involved in the development of REDD, sustainable forestry and renewable energy projects, characterized by a strong focus on communities and long term sustainability. Emerald Planet was founded in Australia and has offices in Hong Kong, Bali, Kalimantan and Papua (opening July 2008). For more information please see www.theemeraldplanet.com.