GER Memorandum of Understanding with PT Inhutani II

05-01-2009

On 31 December 2008 Global Eco Rescue (GER) signed a Memorandum of Understanding with PT Inhutani II in which both parties agreed to collaboratively implement a major avoided deforestation carbon project in East Kalimantan. PT Inhutani II is one of the five state-owned forestry companies in Indonesia and holds the exploitation license for various production forests in the Regency of Malinau. The MoU was signed by Ir. Budi Santoso, Executive Director of PT Inhutani II, and Effendy Sumardja, the GER`s Country Representative in Indonesia.

GER was selected by PT Inhutani II as its partner following a competitive process. In their MoU, PT Inhutani II and GER agreed to stop illegal logging and agricultural encroachment into PT Inhutani II`s forest concession areas; implement reduced impact logging techniques; and explore the development of other ecosystem services in 225,000 hectares of Inhutani`s concession.

The project is expected to produce 1 million carbon credits a year for sale into the voluntary market and after 2012 into the REDD-compliant or US cap & trade markets.

Central to the project is its community development element which will be aimed at communities inside and surrounding the concession areas. Similarly the project will protect flora and fauna, biodiversity and watersheds.

While central government regulations governing implementation and management of forestry carbon projects are being finalized, GER and PT Inhutani II are moving forward with the project and are in the process of negotiating a detailed project agreement. At the same time, GER is actively participating in government workshops and meetings to assist the Department of Forestry in the development of carbon forest project regulations and guidelines.