Background

Forests are a vital part of the carbon cycle and provide sequestration of atmospheric carbon through photosynthesis and storage in woody biomass of trees that can be harvested and processed into wood products resulting in extending the storage life based on the durability of the product. One critical key to this equation is sustainability of forest management to replace the carbon within the harvest cycle versus the current situation of forest degradation and conversion to non-forest use. A prime example is Indonesia where the loss of carbon through conversion of forests to oil palm especially in peat forests has resulted in the country to be the worlds 3rd largest emitter of CO2 behind China & USA

Deforestation and poor forest management is a critical component in accelerating carbon emissions as well as causing continual destruction and loss of habitat for endangered species. GFS understands the importance of forests in the carbon cycle that includes both sequestration and avoided loss of carbon in existing forest stands. The international community has recognized the importance of forestry and the role it plays towards mitigating climate change and there is an increased movement around the world to create Forest Carbon offset projects both under the Voluntary Carbon Scheme and the Kyoto Protocol.

The GFS Forest Carbon Services (FCS) was developed to provide a formal system to develop carbon forestry projects to mitigate the effects of “Global Warming & Climate Change” based on CCB (Climate, Community and Biodiversity Project Design Standards) to bring “credibility” to the project and meet Voluntary Carbon Standards or Kyoto compliant standard for generation of saleable carbon credits.

GFS specializes in forest management; reduced impact logging and rehabilitation of degraded forests that can incorporate projects to reduce carbon loss and sequester carbon as part re-establishing viable forests from highly degraded logging areas. GFS also provides a system to track wood products under the GFS Wood Tracking Program that can be considered as Carbon Storage to extend the life of sequestered carbon in wood based products.

Objectives of the Forest Carbon Services:

The Global Forestry Services Forest Carbon Services is designed to facilitate carbon sequestration and generation of carbon credits through reducing loss of carbon through reduced impact logging and sustainable forest management as well as through forest rehabilitation projects that can be used to offset carbon emissions. Forest Carbon Services was developed in response to the need for professional support the development of carbon forestry projects to mitigate the effects of “global warming” and obtain Carbon Neutrality status. Forest Carbon Services can be integrated within a formal structure with the GFS Forestry Support Program to bring investors and forest management companies together to establish viable carbon forestry project that can be certified according to international standards for forest management under FSC (Forest Stewardship Council) and for generation of certified carbon credits under the CCB (Climate, Community and Biodiversity Project Design Standards).

Project Establishment and Methodology:
GFS has an established a dedicated team of professionals who can professionally develop a stepwise project that includes realistic objectives, evaluation of potential risks, the investment period as well as sourcing and managing the transactions within the project framework.
Forestry Carbon Services consists of 4 key phases coordinated with the needs of the client, which corresponds to the demands of the World Carbon market.

Phase 1: Project Scope Identification

Phase 2: Project Due Diligence and Negotiations

Phase 3: Project Development

Phase 4: Project Certification & Monitoring

Phase 1: Project Scope Identification

The initial step in establishment of a carbon forestry project is to carry out a preliminary evaluation of an identified site in regards to viability for generating Certified Emission Reductions (CERs) or Verified Emission Reductions (VERs) under the desired carbon credit scheme.

Project Identification – to define the scope of the project (Voluntary or Kyoto) according to the needs of the client.

Project Viability – Objectively quantifying the project’s potential to reach verification and issuance of CER’s or VER’s & development of a Project Inception Report.

Phase 2: Project Due Diligence and Negotiations

The main objective of project due diligence is to understand and mitigate project risks. Whether those risks are financial, environmental or legal, GFS believes that a step-wise approach is key in defining a realistic and feasible Carbon Forestry Project. GFS has the experience to bring forest projects to life and the expertise to obtain the financial benefits through realistic project expectations.

Phase 3: Project Development

GFS will support the development of the management system to establish a carbon sequestration or avoided deforestation project that can generate carbon credits that can be certified (registered) to offset carbon emissions or traded in the market. GFS will support the establishment of a forestry project to generate carbon credits in conjunction with the GFS Forestry Support Program (FSP) to provide a stepwise system for forestry certification that will provide credibility of the Forest Carbon project and project proponents to obtain the DNA’s Letter of Conditional Approval (for CDM Kyoto projects).
GFS will produce progress reports against the Action Plan and compliance to meeting certification under the Forestry Support Program.

Phase 4: Project Validation & Verification

The target goal of the FCS & FSP is full certification under the FSC to demonstrate good management of the system and certification under CCB for verifying viability of the project to generate Verified Emission Reductions (VERs) or through a CDM certification if applicable. The forest management company will need to select an accredited certification body to validate project design and conduct a verification assessment.

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