London (DEZZ) May 02, 2012 – This announcement provides a much needed boost to carbon projects in South East Asia and demonstrates that private enterprise, working hand in hand with Governments and community organisations can bring about important commercial projects focused on climate change and fast growing carbon market sectors.
REDD United Nations Framework Convention on Climate Change (UNFCCC)
In particular, the project in Laos is under the REDD United Nations Framework Convention on Climate Change (UNFCCC) project guidelines and will protect and preserve over 550,000 hectares of vitally important bio-diverse forest areas in Laos which are currently under serious threat from illegal logging and commercial clearance for farmland. This project alone will protect the livelihoods of up to 580,000 indigenous people and the habitats of several endangered species, including the Indo Chinese Tiger and Gibbon.
Illegal Logging in Laos Exposed
The illegal logging issues in Laos were brought to global attention in 2010 by the London based Environmental Investigation Agency (EIA) who produced an undercover expose into the illegal activities taking place. As a result, the President of Lao Thongsing Thammovong announced a crackdown on illegal logging activities and announced the Laos Public REDD project to protect 550,000 hectares of indigenous forests and under the UNFCCC initiative, manage the forests to produce and generate carbon credits and then invest the monies that these create back into the local communities, thus providing new sources of revenue to take the communities away from reliance on the income generated from the illegal logging activities.
Singapore based Carbon Capital were moved by this project and after detailed due diligence provided the funding to take the project through to certification and issue of carbon credits into the market place.
Spokesperson for Carbon Capital Shaun Jarmen said:-
“The importance of natural forests to reduce greenhouse gas emissions has long been regarded as one of the most significant ways to stop the advancement of global warming, an issue of particular importance to Singaporeans. However, in order to achieve this local communities have to be able to find alternative sources of income other than illegal logging and slash and burning to create farmland (which to them is their only livelihood). The REDD scheme introduced by the United Nations Framework Convention on Climate Change to turn natural forests into carbon based economies is without doubt the best method of achieving this, using income from polluters to protect the forests and fund alternative programmes, showing the communities how they can make money from protection as opposed to destruction.”
Delivery of 4-5 Million Carbon Credits in 2012/2013
Although this is a large scale project, ultimately delivering 4 to 5 million carbon credits in 2012 and 2013, it is one of many ventures, such as Hydro Power projects in Vietnam and India, that Carbon Capital are involved in. As funders and developers of carbon and environmentally beneficial projects, their aim is to become one of the region’s largest project developers and investors in the carbon markets. Singapore is well placed to take advantage of its status as The Green Capital of the World and push ahead with its own emissions reductions policies and corporate social responsibility projects championed by its forward thinking Government. Unlike the financial markets and banks, we have to remind ourselves that “nature does not do bailouts” and we must find commercially viable ways to help nature in its (and our own) hour of need.
Carbon Capital is a Singapore based company, focusing on project funding and trading in carbon emissions derivatives it is 80% owned by Asia Plantation Capital and 20% by Private Equity. It specialises in identifying market opportunities and working closely with like-minded private clients and in particular family wealth offices globally to bring suitable projects to market, and is a partner of The Carbon Trade Exchange (CTX) the world’s largest spot trader of voluntary carbon credits based in London and Sydney.
REDD is the United Nations collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation, developed under the global fight to defeat global warming and protect the environment by creating commercial alternatives to protect forests and restore them.
Asia Carbon is a private sector Enterprise founded in 2003 whose partners include Kanso, Japan, JBIC and Thermax, India. It focuses on the global business of energy, environment and sustainable development.
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Carbon Capital Asset Management is a Singapore based company, our focus is on creating climate wealth through our principle areas of business in the exciting and rapidly developing carbon commodity market.
Our team of advisors and consultants have over a combined 50 years experience in family wealth offices, investment banking, equity markets, carbon trading, carbon credit investments and financing and project development in the Carbon Market.