Carbon credit firm collapses amid tax debate

A company that specialises in forestry carbon credit projects in Asia, the Pacific Islands and Australia has collapsed.

First Growth Funds which describes itself as an Australian investment company and listed on the Australian Stock Exchange since December 1986, was placed in administration by its secured lender Noble Investments Superannuation Fund last night.

The company's board includes Peter Mullins, a former chief executive of Greenpeace Australia Pacific. First Growth Funds' website also says that Mr Mullins is a former Australian diplomat, with a "strong personal commitment to saving the tropical forests of Asia and the Pacific while, at the same time, securing effective development opportunities for local communities living in these forests."

According to First Growth Funds website it focuses on "emerging technologies in high growth companies and markets".

The company had "active investments" in forestry carbon credit projects in Asia and the region and also had an investment in a Digital Video group.

Through its wholly-owned subsidiary, First Growth Ventures, the company had a deal to provide project financing and development assistance to project developers operating in Indonesia, Asia and the South Pacific region.

The immediate focus of the project was to develop forestry carbon credits from preserving rainforests in South East Asia, creating credits each year of the project's life.

The company believed that typical project lives were greater than 20 years, representing a sound annuity income stream.