Washington, D.C./Sydney, Australia, July 7, 2011—
IFC, a member of the World Bank Group, is investing in BioCarbon Group Pte Limited to fund forest-conservation projects in emerging markets, helping reduce greenhouse-gas emissions, benefit local communities, and protect biodiversity.
IFC, together with Global Forest Partners and Australia’s Macquarie Global Investments, have agreed to commit a total of US$25 million to BioCarbon, a Macquarie-established company, for the development and long-term management of projects that sequester greenhouse gases and from which carbon credits can be generated.
Carbon offsets from BioCarbon projects will be sold in the international market, including to organizations taking voluntary action to reduce emissions or working to meet future obligations under cap-and-trade schemes.
This approach links forest conservation to carbon finance under mechanisms such as the Reducing Emissions from Deforestation and Forest Degradation Plus program (REDD+), an international effort to create a financial value for the carbon stored in forests, offering incentives for developing countries to reduce emissions from forested lands.
“This investment will enable BioCarbon to develop large-scale REDD projects and meet demand for forest-carbon credits, which we believe will be an increasingly important part of global carbon markets,” said Brer Adams, Associate Director, Macquarie Global Investments.
Deforestation is one of the largest sources of greenhouse-gas emissions produced by human activity, and preventing deforestation is a key part of international efforts to prevent climate change. Forests are also a key source of fuel, food, medicine, and shelter for neighboring communities.
“IFC is pleased to support BioCarbon’s innovative approach to forest conservation, which involves developing community-based forest-management systems based on close cooperation with local communities,” said Atul Mehta, IFC Director, Global Manufacturing, Agribusiness, and Services. “BioCarbon’s business model is expected to be replicated in various parts of the world, and IFC’s support will help mobilize further private sector investment in forest conservation.”
BioCarbon’s early projects are located in Indonesia and are developed in collaboration with Fauna & Flora International, an international conservation organization.
“We are delighted to be a part of this groundbreaking initiative. Together we will be demonstrating the potential to reduce deforestation, conserve biodiversity, and combat climate change, while providing significant benefits to communities living in or near forests,” said Mark Rose, CEO of Fauna & Flora International.
For more information about Global Forest Partners, visit
www.gfplp.com
.
For more information about Fauna & Flora International,
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
.
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