First Growth starts world?s first program to develop forestry carbon projects in Papua

Australian-listed firm First Growth Funds Limited group announced Tuesday that its joint venture with Greencollar Group (GCS), First Growth Forests (FGFJV), has commenced the world?s first program to develop forestry carbon projects for the whole of a province in West Papua.

Developing projects at the landscape scale aligns project activities with market expectations for forestry credits and the UNFCCC?s emerging REDD+ principles, the company said in statement.

West Papua has nearly 8 million hectares of forest classified for logging, agriculture, and various urban expansion uses. The program allows Provincial Government goals for management of this estate to be integrated with sustainability practices to create projects with reliable credit supply and long term appeal. The program will develop and market forest carbon projects through a public private partnership with the Government, applying the market-leading Verified Carbon Standard (VCS). Projects are on-track to deliver carbon credits from Quarter 3 of this year.

The VCS standards are the world?s top billing standards. 34% of all transacted volumes in voluntary markets in 2010 used them, of which <40% were for forestry carbon credits. All project are within this fastest growing sector. These markets grew at 34% last year and exceeded previous pre-GFC highs.

Projects being developed to be rolled out from mid-year

Initially sixteen pilot projects are under development. Projects propose that existing logging and agriculture concessions will be replaced with preservation activities funded through carbon finance. The forest pilots are all being developed under the VCS standards grouping provisions using either the joint venture?s owned IFM methodology or the REDD methodology.

The VCS grouping provisions optimise the validation process for multiple related projects, streamlining technical processes to improve integrity and consistency, while reducing transactions costs.

Due diligence has been concluded on the program confirming there are no material barriers to its successful roll-out this year through these pilots. Key project development activities, including extensive stakeholder consultation, are now well advanced. (lucky)