Carbon Streaming Corporation (NETZ) (OFSTF) (M2Q) (“Carbon Streaming”) is pleased to provide an update on its investment pipeline as the Company continues to build a diversified portfolio of high-quality carbon streaming investments around the globe.
Investment Pipeline Update
- Over 5 investment opportunities are in late-stage due diligence and negotiation or have signed term sheets.
- These near-term investment opportunities are expected to provide diversification by geography, project type and counterparty.
- In addition, the longer-term total pipeline of investment opportunities continues to grow and is now in excess of US$1 billion in size.
Carbon Streaming is well capitalized to fund its growth initiatives with over US$100 million of cash on the balance sheet and zero debt. We look forward to providing further updates on execution of our investment pipeline in due course.
The Indonesian government has temporarily paused validation of carbon credits from projects on the Verra Registry (and others) as it seeks to finalize its national carbon policy. The Company maintains a carbon stream investment in the Rimba Raya Biodiversity Reserve Project (“Rimba Raya”) which may be impacted by this temporary pause. Rimba Raya was among the first Verra registered REDD+ (Reducing Emissions from Deforestation and forest Degradation) projects and has forged a long history of success, having over 31.8 million verified carbon credits issued by Verra since 2013.
Jim Procanik, Managing Director of InfiniteEARTH Limited (Carbon Streaming’s project partner at Rimba Raya) added his thoughts, "As we understand it, the Indonesian government is poised to release its national carbon policy framework, and as such, the Ministry of Environment & Forestry (“MOEF”) has asked industry participants to pause further project validations. Given that the term "validation" indicates the first audit of a new project, we have no reason to believe this applies to InfiniteEARTH's Rimba Raya project since it has over 12 years of history with multiple verifications behind it.”
Mr. Procanik continued, “While Rimba Raya had its sixth verification audit scheduled, in consideration of the potentially imminent regulations, we will synchronize the timing of that audit to conform to the signing of the new regulations. Regulations in the carbon sector are rapidly developing, for example, at the end of 2021, PT Rimba Raya received a renewed concession license under the new rules. We continue to cooperate and communicate with the MOEF to ensure that our activities are in compliance with the dynamic regulatory landscape, and we remain in good standing. We are very pleased with the regulatory progress and welcome the clarity it will bring the carbon sector in Indonesia."
Carbon Streaming Founder and CEO Justin Cochrane had this to add: “We welcome the Indonesian government’s leadership in establishing a parallel national carbon registry and expect to see more of this from host countries as governments seek to set and achieve their own Nationally Determined Contributions (NDCs). We remain patient and respectful of the MOEF’s process and are encouraged by Rimba Raya’s recently renewed license.”
Mr. Cochrane further affirmed, “We also applaud Verra for implementing several new initiatives and tools to streamline its credit issuance process to ensure timely verification of carbon credits and to reduce the backlog that currently exists for new and existing projects. Carbon Streaming continues to expect delivery of Rimba Raya carbon credits in calendar year 2022.”
The Company continues to advance towards a potential listing of its common shares and listed warrants on The Nasdaq Stock Market LLC (the “Nasdaq”). Listing of the Company's common shares and listed warrants on Nasdaq remains subject to the approval of Nasdaq and the satisfaction of all applicable listing and regulatory requirements. Following receipt of all required approvals, the Company will issue a news release announcing its first trading date on Nasdaq.