HomeCarbon CreditsCambodia to Sell 15 Million Tonnes of REDD+ Carbon Credits

Cambodia to Sell 15 Million Tonnes of REDD+ Carbon Credits

At COP27’s talk to end deforestation, Cambodia agreed to sign contracts with international corporate buyers for about 15 million tonnes of Verified Emission Reductions (VERs) or carbon credits from the country’s landmark REDD+ projects.

The announcement from Cambodia shows a groundbreaking collaboration among the government, NGOs, local communities, and large companies, to end deforestation. It represents an effective way to address deforestation while driving investments for sustainable development.

The Royal Government’s Ministry of Environment will be signing agreements with a group of leading corporations that will buy the carbon credits from three of Cambodia’s REDD+ projects developed by the Wildlife Conservation Society and Wildlife Alliance.

Cambodia, REDD+ and Carbon Credits

Deforestation and forest degradation are some of the biggest contributors to the climate crisis, representing over 10% of all emissions. And it will be impossible to achieve the 1.5°C warming goal without ending emissions from forest loss by 2030.

  • The UN Conference of the Parties (COP) created the REDD+ framework. It refers to Reducing Emissions from Deforestation and Forest Degradation, with the role of conservation, sustainable management of forests, and enhancement of forest carbon stocks in developing countries.

REDD+ is a climate change mitigation strategy that allows communities and governments to gain payments from the voluntary carbon markets for emissions reductions achieved through forest protection projects. These projects tackle the main culprits of deforestation.

REDD+ projects allow stakeholders to get value from protecting and conserving their forestlands. And the government of Cambodia finds REDD+ and the carbon credits the projects generate relevant to their cause.

According to the country’s Minister of Environment, Dr. Say Samal, project-based REDD+ is an essential part of Cambodia’s strategy to achieve its nationally determined contributions (NDCs). The mechanism also ensures that the communities have enough resources to deliver the projects.

He also said that:

“Funds generated from VER sales help Cambodia’s Ministry of Environment enact effective policies that support our country’s efforts to reduce deforestation, including our transition to a nested jurisdictional REDD+ program. At a time when the world is struggling to meet the commitments enshrined in the Glasgow Leaders’ Declaration on Forests and Land Use, Cambodia’s experience demonstrates how project-based REDD+ can help countries like ours, which are ready to preserve its forests, to secure immediate, sustainable, and large-scale financing…”

Protecting Forests With Carbon Credits (VERs)

By closing the deals, the Cambodian government managed to have critical financing to protect its vulnerable forests. It will help support local communities working on the frontline to end deforestation.

The sales from REDD+ carbon credits were part of Everland’s offering. Last June, the forest conservation company revealed its “Forest Plan”. It’s an action plan by Everland to end deforestation by developing up to 75 REDD+ projects worldwide.

Here’s how the plan will look like for REDD+ projects until 2030.

everland forest plan portfolio

Those community-based forest projects will protect a total of about 50.5 million hectares. They represent 17% of deforestation in 15 critical forest nations, which include Cambodia. Other countries are Brazil, Indonesia, Papua New Guinea, and the Democratic Republic of the Congo.

The government of Cambodia selected Everland to market the carbon credits from its REDD+ projects with large global corporations as buyers. The offering yielded a total bid of 15 million tonnes of emission reductions.

The corporate buyers will use the VERs as part of their strategy to offset unavoidable emissions. All the while contributing to wildlife protection and community development.

Proceeds from the carbon credit sales will be used to:

  • scale up site-based activities within the REDD+ project landscapes,
  • strengthen local and community-based institutions to govern community-level revenue sharing,
  • increase access to jobs, education, and healthcare for the local communities, and
  • secure the long-term financial stability of the projects in Cambodia.

Scaling up REDD+ Programs in Cambodia

Cambodia has been scaling up its REDD+ program by expanding its portfolio of projects. This is done through the help of its major project developer partners, including the Wildlife Conservation Society (WCS) and Wildlife Alliance.

The Ministry of Environment has implemented three REDD+ projects since 2016. These projects are in Keo Seima, the South Cardamoms and Prey Lang, covering an area of 1.27 million hectares.

So far, the projects have received around $11.6 million from the sale of carbon credits. The revenues are all reinvested in further environmental conservation.

The ministry is also preparing for an additional REDD+ project on 1.19 million ha. This will bring the total REDD+ project area to over of Cambodia’s protected areas.

With these programs, the CEO of Wildlife Alliance Suwanna Gauntlett commented at the COP27 discussion:

“Cambodia’s REDD+ projects adhere to the most rigorous monitoring, evaluation, and independent verification processes. They produce high-quality verified emissions reductions that protect forests, reduce emissions, and safeguard the populations of endangered species in addition to ensuring services and livelihoods for forest communities…”

She also said that those benefits only show the forest nations that they can seek economic growth while preserving the natural beauty of their countries at the same time.

Most Popular
LATEST CARBON NEWS

Zimbabwe Allows Developers to Keep More Profits from Carbon Credits

Zimbabwe has amended its new carbon law governing carbon credit projects, dropping the initial plan to give 25% of the revenue to local communities...

Suriname Takes the Lead in Selling Carbon Credits Under Paris Agreement

One of the few carbon-negative countries, Suriname, aims to be the first nation to sell carbon credits created by the Paris Agreement also known...

Battery Startups Attract Mega-Investments and American Lithium’s Discovery

Here’s a Key Summary: Battery Boom: Discover how battery startups are securing record-breaking investments, reflecting the burgeoning potential of the sector. A Lithium Gamechanger:...

IEA’s 2023 Net Zero Roadmap: Tripling Renewables and Electrifying the Energy Transition

The International Energy Agency’s (IEA) latest Net Zero Roadmap suggests that tripling renewables capacity to 11,000 GW by 2030 is one way to reach...
CARBON INVESTOR EDUCATION

Climate Disclosure: New Corporate Standards for a Net Zero World

As part of the world’s continued efforts to combat climate change and transition towards net zero, one important piece of the puzzle is new...

Carbon Pricing: Understanding The Economics and Trends of Fighting Climate Change

As global temperatures continue to rise, the urgency surrounding climate policies has intensified, thrusting carbon pricing into the limelight of climate discussions. The race to...

The EU Corporate Sustainability Reporting Directive (CSRD): Key Things to Know

Companies operating in the European Union will have to deal with new non-financial and sustainability reporting requirements starting January 2024 with the EU's Corporate...

Who Certifies Carbon Credits?

Anybody can say that they’re offsetting their carbon footprint and get financial support for it, which is good. But here’s another version of the...