Offset8 Capital Ltd Initiates First Transaction For Biochar Project In Indonesia

Offset8 Capital Ltd Initiates First Transaction For Biochar Project In Indonesia - Carbon Herald

Offset8 Capital Limited – an Abu Dhabi Global Market-based proprietary asset management firm, and Sawa EcoSolutions – a company advancing nature-based carbon removal projects in Indonesia, announced collaboration to finance Sawa’s biochar carbon credit project in Indonesia expected to generate around $50 million worth of carbon credits over the next 10 years.

Offset8 has initiated an early investment in the project and the announcement marks the signing of its first transaction. Offset8 also acts as a financial advisor regulated by the Financial Services Regulatory Authority of the ADGM that preliminary seeks to finance climate change mitigation and adaptation projects like mangrove restoration, reforestation and biochar.

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SAWA EcoSolutions is a company founded in 2021 and incorporated in Singapore that specializes in sustainable agricultural waste management in Indonesia. The biochar project made its formal debut in May 2022 and aims to tackle the harmful practice of agricultural crop-burning in Indonesia. 

Around 45 million tonnes of agricultural crop residues are burned every year in Indonesia, emitting on average 2 million tonnes of CO2 equivalent annually. Converting the waste into biochar locks away the CO2 in it and could serve as a soil fertilizer, making it a sustainable alternative to just leaving the residues to decay or burning them. 

Sawa will also follow the Core Carbon Principles (CCP) established by the Integrity Council for the Voluntary Carbon Market (ICVCM) when implementing the project. It will follow both Indonesian law and regulations and internationally recognised carbon standard requirements, to open the project to national and international carbon markets, including making it eligible for Article 6 transactions.

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According to the announcement, Offset8 has already received expressions of interest from Middle Eastern and East Asian companies looking to offset emissions via biochar carbon credits for both voluntary or compliance purposes.

“Our collaboration with Offset8 Capital enables Sawa to advance its commitment to mitigating climate change by harnessing carbon capture technology through the transformation of agricultural waste into biochar. Moreover, this partnership addresses the urgent global challenge of food security by producing a valuable soil amendment,” commented Phil Rickard, CEO and Founder of Sawa.

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