UAE’sOffset8 completes first Indonesian transaction: Offset8Capital — which specializes in nature-based carbon removal projects — has signed its first agreement to finance Singapore-based SawaEcoSolutions ’ biochar carbon credit generation project in Indonesia, according to a statement. The biochar project is expected to generate about USD 50 mn in carbon credits over its 10-year lifecycle.

REFRESHER- What is Biochar? Biochar — charcoal produced from burning agri and forestry waste — can improve soil health, while storing carbon and pushing down carbon emissions, rendering it viable for carbon offset sales. Biochar can ensure permanent carbon sequestration for more than 100 years, the statement notes.

The details: Offset8 has already facilitated an early stage investment in the project and will also act as a financial advisor on the transaction, the statement notes. The firm will collaborate on knowledge transfer with Sawa to realize the decarbonization target of the project, which will be developed across Indonesia's Java and Sumatra islands. The Indonesia Carbon Exchange’s recent debut on the Indonesia Stock Exchange, along with the country’s national carbon pricing rates are what attracted the UAE company to the market, the company notes.

Indonesia has a lot of agri waste to spare for biochar production: The country produces about 45 mn tons of agriculture crop residues per annum, which are usually burned and release some 2 mn tonnes of carbon equivalent into the atmosphere a year.

REMEMBER- Offset8 wants to launch its own carbon investment fund: The company plans to raise USD 250 mn in a bid to establish a “first of its kind” carbon investment fund with targeted investments across some 29 markets. The fund will target climate mitigation and adaptation projects with a focus on mangrove restoration and reforestation. Offset8 is particularly eying Africa and Southeast Asia’s CO2 offsets markets as it looks to generate high-quality carbon credits in line with the Core Carbon Principles set by the ICVCM.

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