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 bad forest management and 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 Carbon Forestry offset projects both under the Voluntary Carbon Scheme and the Kyoto Protocol.

The GFS Carbon Credit Support Program (CCSP) 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 and rehabilitation of degraded forests that can incorporate projects to sequester carbon as part re-establishing viable forests from highly degraded logging areas in forests participating in the GFS Forestry Support Program.   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 CCSP :

The Global Forestry Services Inc (GFS) Carbon Credit Support Program (CCSP) is designed to facilitate carbon sequestration and generation of carbon credits through afforestation and forest rehabilitation projects that can be used to offset carbon emissions or traded in the market.  The CCSP 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. The CCSP can provide 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.

The GFS Carbon Credit Support Program 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.

Some of the criteria GFS have identified as critical to the inception step are as follows:

Project Identification

• Defining the scope of the project (Voluntary or Kyoto) according to the needs of the client;
• Identification of potential sites for carbon forestry projects
• Evaluation of Carbon Footprints
• Conduct site evaluation identified sites to evaluate compliance to carbon forestry requirements in respect to additionality.
• Evaluation of social elements relevant to project development

Project Viability

• Review of procedures, management plans and associated documents for the selected area;
• Objectively quantifying the project’s potential to reach verification and issuance of CER’s or VER’s for the selected area;
• Development of a Project Inception Report that describes the potential for the site to generate viable carbon credits;
• Pending results, the project is proposed to continue the GFS Carbon Credit Support Program.

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.

Project due diligence studies reduce varying project environmental social and legal uncertainties, to minimize risk to the project meeting the objectives of generating projected carbon credits that can be traded. Project due diligence bridges the gap between environmental uncertainties and financial risk and also covers the legal aspects of the project. Understanding the current environmental, social and legal risks that can create leakages and impact the project must be mitigated.

GFS will support the client to conduct the due diligence in regards to identification of potential adverse risks related to the potential carbon project.  This includes various aspects such as security of land tenure, government policies, rental agreements, suspensions, breaches, obligations, social attributes such as encroachment and environmental obligations.

During the due diligence phase of development, GFS will support the following:

• Evaluation of potential project risks
• Evaluation of potential leakages
• Negotiations and facilitation to mitigate identified risks;
• Signing of agreements between parties to enter into the project development phase.

Phase 3: Project Development

GFS will support the development of the management system to establish a carbon sequestration or avoided deforestation project that will 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 to provide a stepwise system for forestry certification that will provide credibility of the Carbon Forestry project.

GFS provides many activities as part of the technical support for project development and implementation under the combination of the FSP & CCSP:

• Review and finalize the scheduled Action Plan for project development and implementation;

• Evaluation and confirmation of the carbon project scope
• Baseline evaluation and projections of net carbon gain during project life span
• Confirmation and minimization of potential leakages within forest management unit
• Carbon development plan (Project Idea Note) & submission to relevant agencies;
• Development Forest Management Plan for the proposed carbon project;
• Development of Standard Operating Procedures for all forestry activities.
• Fire Management Plan
• Monitoring system for operations and net carbon generation
• Project Design Document (PDD) preparation and submission to relevant bodies;
• Submission of project for certification / registration and carbon credit issuance;
• Project monitoring, and continued technical support as needed;
• Carbon credit verification for each investor within the carbon project;

For Kyoto CDM projects GFS will provide facilitation between Designated National Authority (DNA) 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 CCSP & 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.

Following certification, the CCSP can continue to support the monitoring of annual carbon production VERs within the site.  Forest management Units may contain multiple carbon projects based on long term forest management planning and annual planning for forest rehabilitation, silviculture and conservation that will define specific carbon projects within a forest by project area and by year.  GFS can support the organiation to monitor each project site and area in regards to implementation and maintenance.  GFS will also ensure the management annually monitors the carbon production within each carbon project and control areas based on permanent sample plots to verify additional carbon production over the baseline scenario to measure VERs.