Sumitomo Secures Carbon Credits From Indonesian Mangrove Project

Image: Sumitomo

Japanese conglomerate Sumitomo Corporation has entered into a carbon credit agreement with Singapore-based Value Network Ventures Advisory Services (VNV), a company that develops carbon credit projects worldwide.

The initial deal will see Sumitomo obtain carbon credits by funding a mangrove plantation to be developed on the island of Sumatra in Indonesia. In addition, a memorandum was signed with VNV to jointly explore carbon credit projects globally.

The Sumatra project will see Sumitomo together with VNV plant mangrove trees in cooperation with local NGOs and local residents to generate carbon credits (approx. 600,000 t-CO2 in total) for 20 years that will be traded by Sumitomo mainly to Japanese companies and other customers.

Mangroves are an important part of social infrastructure for local residents and local communities as a means of adapting to climate change because they absorb relatively large amounts of CO2 as well as supporting and conserving biodiversity.

Through the Project, Sumitomo Corporation will help realise decarbonised societies by generating mangrove-derived carbon credits. At the same time, Sumitomo will look to expand job opportunities for local residents to improve their livelihoods as well as supporting a sustainable society in local communities by mitigating tsunami damage and conserving biodiversity.