Ostrom Climate Announces Nature-Based Solutions Cooperation Agreement With Klima 1.5 In The Philippines

Ostrom Climate Announces Nature-Based Solutions Cooperation Agreement With Klima 1.5 In The Philippines - Carbon Herald

Ostrom Climate Solutions Inc, a global carbon project developer and climate solutions company, today announced a Cooperation Agreement with Klima 1.5 Corp (“Klima”), a carbon management company in the Philippines.

Ostrom Climate and Klima have committed to producing a conceptual plan and feasibility study for nature-based solutions (NBS) carbon projects in the Philippines, particularly in Mindanao, the southernmost major island in the country and the second largest, after Luzon.

This strategic alignment aims to support project execution and maximize environmental and economic benefits.

Strategic Focus on Afforestation, Reforestation & Revegetation (ARR) Projects

Both Ostrom Climate and Klima will focus on developing NBS carbon projects that utilize natural processes and ecosystems to capture and store carbon, thereby reducing greenhouse gas emissions and supporting biodiversity. The key focus of the Cooperation Agreement centers around Afforestation, Reforestation & Revegetation (ARR) projects, which are essential for capturing and storing carbon, enhancing biodiversity, and supporting sustainable development​​.

The Philippines, with its rich biodiversity and vast natural resources, presents significant NBS opportunities. Mindanao, which spans over 9.75 million hectares, is particularly promising due to its extensive forest cover and diverse ecosystems. The target project areas are primarily active logging sites with licenses and management plans in place.

Relevant: Ostrom Climate Provides Corporate Updates, Focuses On Carbon Projects Development

These initiatives will not only contribute to reducing greenhouse gas emissions but will also support local communities through enhanced livelihoods and resilience to climate change. Management believes that the development of NBS can serve as a model for similar projects across the Philippines, driving national and global climate goals.

Jane Boles, International Land Use Director at Ostrom Climate, said “Our deepening partnership with Klima is a testament to our shared commitment to sustainable development and climate action. The combined expertise and resources of both organizations will enable us to deliver high-quality carbon projects that benefit both the environment and local communities in the Philippines.”

Scope and Responsibilities

The agreement outlines the responsibilities of each party in identifying and developing potential project areas.

Klima will continue to manage local stakeholder engagement, provide legal and regulatory support, and ensure the timely execution of project management duties.

Ostrom Climate will bring its technical expertise, socio-environmental assessments, and economic modeling to the partnership, ensuring that all projects meet high standards of environmental performance and financial viability.

Management believes that the agreement will also pave the way for potential joint ventures, subject to favorable feasibility study results and corporate approvals.

Expanding Ostrom Climate’s Established Presence in the Philippines

On June 5, 2024, Ostrom Climate unveiled its evolved business strategy to focus on high-quality carbon project development, aiming to leverage the anticipated exponential growth of carbon markets by 2050. This strategic shift involved transitioning from a project development and carbon management consultancy to a lead equity partner in carbon projects. A significant initiative under this strategy was the launch of a flagship Climate-Smart Agriculture project in the Philippines. In collaboration with the National Irrigation Administration (NIA) in the Philippines, the Company announced the Upper Pampanga River Climate-Smart Agriculture Rice Project (UPRIIS).

The UPRIIS project is set to transform rice cultivation across approximately 100,000 hectares in Central Luzon, Philippines. By utilizing Alternate Wetting and Drying (AWD) practices, the project aims to reduce methane emissions by up to 48% per hectare, aligning with sustainable water management practices and global climate goals. According to the European Commission, methane is estimated to be between 28 to 84 times more effective at trapping heat in the atmosphere versus carbon dioxide (CO2).

Relevant: Microsoft Strikes The Largest Carbon Removal Credits Deals – Up To 8M Nature-Based CDR

Building on the foundation laid by the UPRIIS project, the expanded cooperation agreement with Klima will enable Ostrom Climate to leverage its established resources and presence in the Philippines. This larger footprint will provide Ostrom Climate with operating leverage to execute more high-quality carbon projects across the country. Management believes that the collaboration with local partners and recognition by government authorities and the country’s largest industrial players will solidify Ostrom Climate’s capacity to drive substantial environmental impact through innovative and sustainable solutions.

“The collaboration with Klima represents a significant step forward in our mission to drive impactful climate action, adding to our established Climate-Smart Agriculture presence in the country,” said Phil Cull, CEO of Ostrom Climate. “By widening our presence in the Philippines, we will be better positioned to develop and implement more comprehensive solutions that will address both environmental and socio-economic challenges.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
Translate »