Chicago, IL—Chicago Climate Change partner Jeffrey Fort opened the gates for Cambodia’s first Reduced Emissions for Deforestation and Degradation (REDD) project to move forward after years of development. Jeffrey advised pro bono on the terms for the Emission Reduction Purchase Agreement (ERPA) between our client, the Forestry Administration of the Royal Government of Cambodia, and Terra Global Capital (TGC), a carbon development and trading firm. This ERPA, which was just executed, facilitates the sale of carbon credits essential to funding the project and delivering high impact emission reductions.

REDD is a series of protocols designed to use market and financial incentives to reduce greenhouse gases that result from deforestation. Its implementation is supported by a United Nations Development Programme (UNDP), which helps developing countries design and execute national programs based on these mechanisms. The REDD+ protocols take this concept a step further, focusing on enhancing carbon stocks and concentrating investments in local communities of indigenous peoples within the forest areas in need of protection.

The Northwestern province of Oddar Meanchey contains 67,853 hectares of forest land vulnerable to deforestation from illegal logging, small to medium-scale agriculture and small-scale extractive activities. Cambodia’s REDD+ program is expected to sequester 7.1 million metric tons of carbon dioxide over 30 years and provide support for the local communities to protect their forests, develop alternative income streams from sustainable forest management, increase food security and use sustainable energy sources. The sale of the verified emissions reductions will direct increased resources towards these activities. It is a highly promising project demonstrating how developing countries can generate income from carbon markets and positively impact climate change.

Jeff successfully navigated the project’s unique complexities by leveraging his specialized experience with REDD protocols on projects in Brazil, Kenya, Malawi and the US, closing the ERPA between the Cambodian Forestry Administration and TGC. The agreement sets the terms for TGC’s obligations as the Exclusive Sales Agent of the carbon credits generated from the Oddar Meanchey REDD+ project. The project, one of the world’s first community-based REDD+ initiatives, is also the first to complete verification of emission reductions under the Verified Carbon Standard, while delivering the highest community, biodiversity, and adaptation impact benefits, as well as robust accounting for emission reductions. 

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