Canadian and Indian Partnership Launches Carbon-Removal Reforestation Project in India

Toronto-based Base Carbon, a carbon reduction investor, and VNV Advisory Services a project developer of high-impact climate finance projects in Asia have announced a partnership to develop a nature-based carbon removal project, focused on the reforestation of degraded rural farmlands in the northern Indian state of Uttar Pradesh.

Implementation of the project has already started with approximately 2.5 million trees planted to date with the project’s remaining 4 million trees expected to be planted by the end of 2023.

Upon completion, 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. The first credit issuance is expected in early 2025.

Designed with a prominent level of stakeholder engagement, this community-centric project is expected to have a significant positive impact on local rural farming communities’ food security, climate adaptation measures, and drought resilience, among several other co-benefits.

The initial project capital expenditure of US$7.3 million is anticipated to be drawn through Q1 2024 to capitalise the reforestation and associated agroforestry infrastructure. An additional US$6.3 million representing primarily maintenance capital is expected to be deployed over a subsequent 10-year period to be funded by Base Carbon.

Base Carbon said it anticipates reinvesting a portion of proceeds from the project credit sales to fund maintenance capital requirements, and the Canadian firm will also retain the right of first refusal on any expansions of the project.

Founded in 2007, VNV Advisory Services’ community-led programs on climate action have covered over 7 million rural households and encompass over 3 million hectares of forestry, agriculture, and conservation efforts in more than 16 countries to date.

Base Carbon’s CEO said: “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.”