Photo: Aubrey Wade
Investing News| 18 December 2023
Klimat X announces BP Carbon Trading Limited as first funding partner of restoration project
(Note from the editor: BP Carbon Trading is owned by Britannic Strategies Limited, which is owned by BP's subsidiary, Britannic Strategies Limited)
Klimat X Developments Inc. ("Klimat X" or the "Company"), a leading provider of high-quality technology enabled carbon credits, sourced exclusively from afforestation and reforestation projects, developed and owned by the Company and its stakeholders, is pleased to announce that UK-based BP Carbon Trading Limited is the first funding partner of the Company's Sierra Leone restoration project.
As previously announced, the funding agreement secured USD2.5m, supporting the planting and development of 5,000 ha of degraded land in Sierra Leone. Land ownership agreements were secured under a participatory mapping and a Free Prior and Informed Consent process with smallholders in Sierra Leone who are compensated for land leases and who further participate directly in benefit sharing. Namati, a paralegal NGO that advances social and environmental justice by providing legal advice to indigenous communities comments, "ensuring the communities receive benefits is key, as is the restoration of the country's forests". The project creates employment income for communities while contributing to the restoration of native biodiverse forests. In time, and with the maturation of the rainforest, benefit sharing income from profits realized from credits sold, together with the new Land Act, level rental incomes are expected to rise.
BP Carbon Trading Ltd completed a site visit in October 2023 . The the project documents for third party validation have been submitted, and the Company anticipates will be completed in early 2024 under the new Verra afforestation protocol and the CCB standard.
Klimat X CEO, James Tansey commented 'The scale of the challenge of climate change is so vast that we need to pursue every strategy available to reduce emissions. According to peer reviewed research, forest loss and degradation has resulted in over 185 billion tonnes of emissions and this project is a leading example of how to help reverse that damage. As the world transitions away from fossil fuel dependence, we can take action by helping to restore some of the most productive ecosystems in the world through nature based solutions. We are proud to be able to announce this important contribution to tackling climate change by a world-leading company.'
The Company is targeting over 50,000 ha of rainforest restoration. To date, the Company has planted almost 1,500 ha of forest restoration and has mapped over 20,000 ha of land owned privately by smallholders. The first 5,000 ha of restoration is expected to generate approximately 1.9 million tonnes of carbon credits over the project lifespan. The full project area identified to date has the potential to produce over 35 million tonnes of restoration and conservation carbon credits, based on modelling completed to date. The Company continues to expand its pipeline through new project development.
According to the Task Force on Scaling Voluntary Carbon Markets[1], Nature based solutions have the potential to supply up to 85% of the total volume of credits demanded by the market by 2030.
Under the leadership of Mohamed Kamara, Local Managing Director and Sierra Leonean national, the Company is developing a new smallholder farmer tree level technology system called 'Carbon Done Right' connecting smallholder farmers with technology that enables the value created from the sales of carbon credits to be shared with land owning families. This will allow the farmers to get paid quickly using automated payment tools and blockchain traceability software that trades the credits on a Trading Exchange for a premium. There is great value in being tech-enabled and tracking each tree planted from space, using tree level proprietary AI models that measure and monitor the health of each tree and accurately track carbon sequestration data for farmers and BP.
The team met at COP 28 with the government of Sierra Leone and with the newly appointed and dynamic Minister of Environment and Climate Change, Jiwoh Abdulai - He said " we welcome restoration of our degraded forests by initiatives such as Carbon Done Right, and look forward to working with them on their technology platform to assist us in shaping a carbon market ". The project aims to be consistent with any future Sierra Leone carbon market rules and regulations.
1 https://www.iif.com/tsvcm
About Klimat X
Klimat X is an owner and operator of nature-based carbon assets that serves the growing demand for carbon credits from companies seeking to meet their Net Zero goals. The Company achieves this by investing in the restoration and management of terrestrial and marine systems that can either be protected to enhance the sequestration of greenhouse gases or restored from a degraded status to fully productive ecosystems. The Company's dedication to environmental stewardship and its robust pipeline of carbon credit projects makes it a trusted partner to the largest buyers of carbon credits in the world. Klimat X deploys capital at risk under various arrangements (including cooperation, assignment, and production sharing agreements) with government engagement in various suitable jurisdictions around the world including Sierra Leone , Yucatan , Guyana and Suriname using the latest technology and in country life support.
On behalf of the Board of Directors
"James Tansey"
James Tansey
Chief Executive Officer
