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,
visit www.fauna-flora.org.
For more information about Macquarie Global Investments, visit www.macquarieglobalinvestments.com.
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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