Nedbank unit in forest deal

NEDBANK Capital and Face the Future have signed a memorandum of understanding to jointly develop sustainable forestry projects in Africa.

Paul Griffin, senior administrator of carbon finance at Nedbank Capital, said yesterday the Kibale National Park reforestation project in Uganda, managed by Face the Future and the Uganda Wildlife Authority, had been registered under the Verified Carbon Standard, resulting in the issue of about 370000 carbon credits in September.

"Nedbank Capital first became aware of the project a year ago and, after reviewing the project’s participants and their activities, and upon completing on-the-ground due diligence, we purchased 50000 verified carbon units for the Nedbank Group ’s carbon-neutral programme."

Mr Griffin described Kibale as a "pilot project". The two organisations’ partnership of projects includes activities in Kenya, Tanzania and Uganda.

Face of the Future is a worldwide forest carbon-project developer. Founded in 1990, it has been responsible for re-establishing more than 50000 ha of forest and for rehabilitating more than 100000ha of existing forest.

Face the Future director Denis Slieker said his company brought extensive knowledge of carbon certification, forestry and carbon markets to tangible projects, developed in close co-operation with local bodies.

"Face the Future has successfully registered two forestry projects under the Verified Carbon Standard — projects that resulted in the issuance of a significant number of carbon credits. This shows that sustainable forestry projects can start creating a financial business case, and compete with conversion of forest."

Face the Future, with offices in the Netherlands and Ecuador, has marketed more than $2,5m in carbon credits.

"Given Face the Future’s track record, we are gratified to be partnering with a company that focuses on projects that benefit climate change, biodiversity and communities," said Mr Griffin. Few carbon projects were located in Africa, he said.

"We are confident that Africa has great potential — which is why we plan to focus on projects on the continent. Together with Face the Future, we are optimistic that we shall help bridge the gap between forest owners and the international carbon market.

"Our joint expectations are for future collaboration encompassing both existing and new African forestry-orientated projects."

Mr Griffin hoped the launch would attract additional interest and funding for future projects.

Mr Slieker said the memorandum recognised the synergies of the partners’ abilities and experience in pursuing African forestry projects.