Base Carbon Partners With Developer of Carbon Removal Projects
TORONTO, Aug. 08, 2023 (GLOBE NEWSWIRE) -- Base Carbon Inc. (NEO: BCBN) (OTCQX: BCBNF) ("Base Carbon", or the "Company"), a financier of emission reduction, removal, and related climate action projects, is pleased to announce it has executed an agreement, through its wholly owned subsidiary Base Carbon Capital Partners Corp. (“BCCPC”), to facilitate the development of a nature-based carbon removal project, focused on the reforestation of degraded rural farmlands in the northern Indian state of Uttar Pradesh (the “Project”). Value Network Ventures Advisory Services Pte Ltd. (“VNV”) is Base Carbon’s Project development partner.
Highlights
- Base Carbon, in partnership with VNV, to facilitate the planting of approximately 6.5 million trees on degraded rural farmlands and fertile but arid deserted lands in northern India.
- Project implementation is already underway: approximately 2.5 million trees have been planted to date with the remaining 4 million trees expected to be planted by the end of 2023.
- The Project is expected to generate over 1.6 million high-quality nature-based removal carbon credits issued in relatively equal tranches over an expected 20-year Project life. First issuance is expected in early 2025.
- Initial Project capital expenditure of US
$7.3 million anticipated to be drawn through Q1 2024 to capitalize the reforestation and associated agroforestry infrastructure with an additional US$6.3 million representing primarily maintenance capital to be deployed over a subsequent 10-year period to be funded by Base Carbon. Base Carbon anticipates reinvesting a portion of proceeds from Project credit sales to fund maintenance capital requirements. - Base Carbon will retain the right of first refusal on any expansions of the Project.
- Designed with a prominent level of stakeholder engagement, this community-centric Project has a significant positive impact on local rural farming communities’ food security, climate adaptation measures, and drought resilience, among several other co-benefits.
- Founded in 2007, VNV’s community-led programs on climate action have covered over 7 million rural households and encompass over 3 million hectares of forestry, agriculture & conservation efforts in 16+ countries.
Project and Investment Overview
Base Carbon, through its wholly owned subsidiary BCCPC, is diversifying its portfolio into carbon removal projects beginning with an afforestation, reforestation, and revegetation project (ARR) in India.
The Project engages smallholder farmer communities to plant approximately 6.5 million native and naturalized trees on degraded rural farmlands and fertile but arid deserted lands. Approximately 2.5 million trees have been planted to date, and a further 4 million trees are expected to be planted by the end of 2023.
The Project is expected to generate over 1.6 million carbon credits issued in relatively equal tranches over an estimated 20-year Project life. The Project is in development and is expected to be registered with Verra’s VCS program in 2024 and Base Carbon will retain a right of first refusal on any expansions of the Project. A portion of proceeds from the sale of carbon credits will be reinvested into the Project, with first issuance of carbon credits expected in Q1 2025.
BCCPC is expected to advance a total of approximately US
“This project represents an important next step in the evolution, development, and diversification of Base Carbon’s portfolio. As our first carbon removals project we are thrilled with the quality of both the project itself, and our project partner, VNV. With the addition of this project to our portfolio, we continue to execute on a systematic and diligent approach to scaling our business and our capital allocations to the needs, demands, and future of carbon markets,” stated Michael Costa, Chief Executive Officer of Base Carbon.
Project Details
The Project is located in the Uttar Pradesh state of India. Uttar Pradesh is the most populated state and one of the leading agriculture locales within India. While a vast majority of the population relies on agriculture for its livelihood, over
The Project plans include planting approximately 16 different species, selected through an inclusive community-led iterative process. The planting will include a variety of native and naturalized tree species, such as Citrus and Guava, as well as medicinal and culturally significant trees, such as Mahua trees.
The trees are expected to be planted primarily on smallholder lands of five hectares or less. The native and naturalized species of trees planted will sequester carbon from the atmosphere as they grow. In addition, as part of the Project’s equitable benefit sharing mechanism, certain species of fruit and nut trees will be planted, providing income diversification and incremental revenue generating activities for those individuals and communities. The income-generating species planted will remain the property of the farm-owners in an evergreen manner.
The Project has been designed around the needs of local farming communities, with a high-level of stakeholder engagement, ownership, input, and feedback. Agroforestry projects are an essential strategy for smallholder farmers in India, to improve their long-term income generation and diversification, as well as building climate change resilience.
Development Partner
Founded in 2007, VNV has been at the forefront of the movement against climate change by conceptualizing, developing, and executing community-driven initiatives in the South Asian (India, Bangladesh, Nepal, Bhutan, Myanmar, Sri Lanka), Southeast Asian (Indonesia, Vietnam, Cambodia, Laos, Thailand, Timor Lest) & African (Tanzania, Ghana, Madagascar) landscapes. These community-led programs have impacted over 7 million rural households and cover over 3 million hectares under land use and forestry, among other mitigation and adaptation nature-based solutions which aim to restore ownership, dignity, improve livelihoods and foster resilience of first responding communities in least developed and developing nations of the Global South. VNV, also known as Value Network Ventures, believes in the power of convergence of multiple stakeholders including, but not limited to, the private sector, public sector, research institutions and collaboratives to create collective and thus significant impact. In this endeavor VNV engages businesses in achieving net neutrality targets while addressing issues of social responsibility and environmental sustainability along their supply chain through the implementation of such climate action projects in line with the Paris Agreement, Sustainable Development Goals (SDGs) as well as the Global Biodiversity Framework (GBF).
VNV is recognized by high-quality offtakers as a preferred partner and serves as an implementation partner to various governments, bilateral and multilateral agencies such as GIZ, IFC, GOI, WRG 2030 and LNFD, as well as being accredited by the International Carbon Reduction and Offsetting Accreditation (“ICROA”). Mr. Sandeep Roy Choudhury, the founder, and Director of VNV, is also on the ICROA Accreditation board, serves on the expert advisory group of VCMI (Voluntary Carbon Markets Initiative), is a board member with the center of integrity, transparency, and ethics of the UN Global compact, and is a recognized thought leader in the Voluntary Carbon Markets. For more information, please visit https://vnvadvisory.com/.
“This is a very exciting opportunity between our two firms. By pairing Base Carbon’s valued financial structuring and capital markets knowledge with VNV’s expertise in community-based carbon project development, we anticipate a successful partnership over the coming decades,” stated Sandeep Choudhury, the founder and Director of VNV.
About Base Carbon
Base Carbon is a financier of projects involved primarily in the global voluntary carbon markets. We endeavor to be the preferred carbon project partner in providing capital and management resources to carbon removal and abatement projects globally and, where appropriate, will utilize technologies within the evolving environmental industries to enhance efficiencies, commercial credibility, and trading transparency. For more information, please visit www.basecarbon.com.
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Michael Costa, Chief Executive Officer, and Ryan Hornby, Chief Legal Officer are responsible for this press release.
Cautionary Statement Regarding Forward Looking Information
This press release contains “forward-looking information” within the meaning of applicable securities laws with respect of the Company, including but not limited to, statements relating the expected development of the Project, including the planting of trees, the registration of the Project, anticipated issuance of carbon credits and to the focus of Base Carbon’s business. In some cases, but not necessarily in all cases, forward-looking information may be identified by the use of forward-looking terminology such as “expects”, “anticipates”, “intends”, “contemplates”, “believes”, “projects”, “plans” or variations of such words and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events. Statements about, among other things, Base Carbon’s strategic plans, the expected development of the Project, including the planting of trees, the registration of the Project, anticipated carbon credit issuances and anticipated revenues are all forward-looking information. These statements should not be read as guarantees of future performance, results, or achievements.
In respect of the Project, certain factors that influence the commercial success of the Project include, among other things: (i) the Company’s expertise with respect to the evaluation, planning and negotiation of the Project, (ii) the conduct of the Project counterparties, including cooperation with local small-land owners, (iii) Project costs and carbon credit market prices, (iv) ongoing project monitoring and issuance of carbon credits by Verra, (v) changes to laws and regulation in the Republic of India, (vi) extreme weather event and natural disasters.
In respect of the Project, certain assumptions that influence the commercial success of the Project include, among other things: (i) the development the Project remains in line with anticipated timelines and costs, (ii) Project counterparties, including VNV, its subcontractor and local small-land owners, preform their contractual and/or standard operating procedures, (iii) the successful planting and survival of trees, (iv) the growth rates of trees are consistent with the expectations under the Project which is then reflected by monitor reports accepted by Verra, and (v) the Company has sufficient funds on hand to make carbon credit purchase price payments.
Although management believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking information are based upon reasonable assumptions and expectations, readers should not place undue reliance on forward-looking information because it involves assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking information.
The forward-looking statements made herein are subject to a variety of risk factors and uncertainties, many of which are beyond the Company’s control, which could cause actual events or results to differ materially and adversely from those reflected in the forward-looking statements. Readers are cautioned that forward-looking statements are not guarantees of future performance. Specific reference is made to the most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities (and available on www.sedarplus.ca) for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Should one or more of the risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual events or results may vary materially and adversely from those described in the forward-looking information. The forward-looking information contained in this press release is provided as of the date of this press release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
1 Uttar pradesh - Poverty, growth, and inequality (English). India state briefs Washington, D.C.: World Bank Group. http://documents.worldbank.org/curated/en/187721467995647501/Uttar-pradesh-Poverty-growth-and-inequality
2 Times of India (2021) ‘Multidimension Poverty Index:
