Jakarta, Indonesia – Tokyo, Japan – Abu Dhabi, UAE, August 14, 2024 – Offset8 Capital Limited, Sawa EcoSolutions Pte. Ltd. and Faeger, Inc, a leading Japanese agricultural-origin carbon credit developer, have signed a tripartite Memorandum of Understanding (MoU) aimed at advancing net-zero emissions. This MOU focuses on expanding the AWD (Alternate Wetting and Drying) method in rice farming, reducing methane emissions, generating carbon credits, and supporting local farmers in Indonesia. The collaboration that the parties to the MOU wish to pursue aims at contributing to achieving global climate goals and at facilitating the exchange of carbon credits between Indonesia and Japan.

As the world’s 4^th largest rice producing country, Indonesia is poised to make significant emissions reductions from this important agricultural sector through the introduction of AWD. Sawa, through its strong network of Indonesian farming conglomerates, will seek to introduce Faeger to local rice farmers to facilitate the implementation of this innovative technology and to integrate these sustainable practices on a very large scale.

Offset8 will seek to apply its expertise in structuring and pricing carbon transactions among project developers, investors and end users, as well as, subject to compliance with the applicable legal requirements in all the relevant jurisdictions, manage the marketing and sale of these credits globally. Faeger will seek to lead the implementation of the AWD methodology and co-manage project registration together with Sawa and Offset8.

Additionally, Offset8 and Sawa plan on studying the feasibility of generating biochar from rice husk and other agricultural waste. Offset8 and Sawa believe that such method has the potential of further enhancing CO2 avoidance and removal, which, in turn, may help decarbonize Indonesia’s vast agricultural sector, while benefiting local farmers.

Japan has established the Joint Crediting Mechanisms (JCM’s) with Indonesia and the UAE, among others, and this collaboration underscores a shared commitment to achieving net-zero emissions while supporting sustainable agriculture and providing additional income to farmers in the participating countries. This partnership is also expected to attract both corporate buyers and capital investments from major markets around the globe.

Testaments

“This collaboration is a testament to our shared vision of sustainable agriculture and environmental stewardship. By working with Sawa and Faeger, we aim to empower local farmers, reduce emissions, and strengthen the bonds between Indonesia, Japan, and the UAE.” – Jules Maitrepierre & Munenori Fernando Horie of Offset8

“This collaboration marks a significant step towards revolutionizing sustainable agriculture in Indonesia. By integrating Faeger's advanced technologies with our biochar initiatives and leveraging Offset8's expertise in carbon markets, we aim to drastically reduce emissions, support local farmers, and contribute to global climate goals." – Phil Rickard, CEO of Sawa EcoSolutions.

“Through this initiative, we can significantly reduce methane emissions by applying AWD (Alternate Wetting and Drying) and biochar knowledge to Indonesia. Additionally, the carbon credit system can help improve the income of local farmers. By maximizing the strengths of the three companies involved, we aim to contribute to addressing global climate change and inequality issues.” – Takahiro Ishizaki, CEO of Faeger Co. Ltd.

About Offset8

Offset8 Capital Limited is an Abu Dhabi Global Market-based proprietary asset management firm and a financial advisor regulated by the Financial Services Regulatory Authority of the ADGM.

Offset8 seeks to finance climate mitigation and adaptation projects, with focus on mangrove restoration, reforestation and biochar. Of particular relevance will be projects that aim to support local communities in Africa and Southeast Asia and to contribute to both environmental conservation and sustainable economic development.

About Sawa

Sawa EcoSolutions (based in Singapore), and its Indonesian operating arm, Legasi Alam Indonesia, were founded in 2021 and specialize in sustainable agricultural waste management in Indonesia. With a clear vision, the company aims to establish 100 production facilities across Southeast Asia, removing 1 million tonnes of carbon dioxide annually to combat climate change effectively. By harnessing the abundant agricultural residue biomasses in the region, Sawa not only addresses waste management challenges but also plays a crucial role in supporting food security by repurposing these resources.

About Faeger

Faeger is a company that collaborates with farmers to generate carbon credits. It is one of the few companies in Japan that can consistently handle everything from the creation to the sale of carbon credits. Faeger provides these credits to business as “credits that show the face of producers committed to decarbonization”, providing value not only through carbon offsets but also in public relations. By supporting the process of credit creation and purchasing, Faeger brings revenue to farmers and promotes activities to reduce CO2 emissions in agriculture.

DISCLAIMER:

This press release is for general informational purposes only and should not be relied upon for any other purpose. Notwithstanding anything contained in this press release, this press release does not constitute, and no reader of this press release may treat the same as, an offer to sell, a solicitation or invitation for the sale and purchase of any securities, instruments or any other properties, and the information contained in this press release shall not form the basis of any offer or contract. Under no circumstances is this press release to be construed as an offering of an interest in any collective investment fund in any jurisdiction. No action has been taken to permit an offering of interests in any collective investment fund in any jurisdiction where action for that purpose would be required.

None of Offset8, its affiliates and their respective partners, members, employees, officers, directors, agents, advisers and representatives (collectively, the “Offset8 Group”) have any liability for, and neither assumes nor accepts responsibility in relation to, the use of, or reliance on this press release by any person. The Offset8 Group makes no representation or warranty as to the truth, accuracy or completeness of the information in this press release (including statements of opinion or expectation) nor shall have any liability (whether arising from negligence or otherwise) for any representations (express or implied) contained in, or for any omissions from, this press release or for any written or oral communications transmitted to the recipient (or its advisors or representatives).

Offset8 Capital Limited (“Offset8”), an Abu Dhabi Global Market-based proprietary asset management firm and a financial advisor authorised and regulated by the Financial Services Regulatory Authority of the ADGM, announces the signing of its first transaction to finance Sawa’s biochar carbon credit project (the “Project”) in Indonesia (the “Transaction”).

The Project is estimated to generate approximately US$50 million worth of carbon credits over the next 10 years. Offset8 has facilitated an early-stage investment in the Project and intends to support Sawa with Offset8’s expertise throughout the life of the Project.

The Project will be developed in multiple regions across Indonesia, starting with Majalengka Regency in West Java, and expanding across Java and into Sumatra. Historically, agricultural waste has been stored in piles and left to decay or has been burned, posing a fire hazard, contributing to respiratory health issues, and leading to methane production. 45 million tonnes of agricultural crop residues are burned every year in Indonesia, emitting on average 2 million tonnes of CO2 equivalent every year. Sawa will convert agricultural waste into biochar, which offers a sustainable and eco-friendly solution to the waste management problem, to generate biochar carbon credits. Biochar carbon credits represent a highly valuable type of carbon removal credits due to the potential of biochar to ensure permanent carbon sequestration for more than 100 years.

In implementing the Project, Sawa will rely on the Core Carbon Principles (CCP) established by the Integrity Council for the Voluntary Carbon Market (ICVCM).

Offset8 believes Indonesia has potential to play a pivotal role in global climate efforts. The Indonesia Carbon Exchange recently launched by the Indonesia Stock Exchange is a key initiative that should enable Indonesian companies to decarbonize their businesses and to achieve their net zero goals.

Offset8 and Sawa will work on ensuring that the Project complies with both Indonesian law and regulations and with internationally recognised carbon standard requirements, thereby enabling the Project to meet the requirements of the national and international carbon markets, including Article 6-eligible transactions.

Indonesia’s carbon pricing policies and supervision to be implemented by the country’s leadership will be imperative to contribute effectively to global climate targets. Offset8 believes Indonesia’s decisions on mutual recognition of the international carbon standards and increase of interoperability and interconnectivity with other markets could attract more international capital to help Indonesia achieve its national climate targets.

A profit-sharing arrangement, agreed upon by Offset8 and Sawa as a part of the Transaction, is designed to ensure that the local communities will receive socio-economic benefits from the sale of carbon credits and Project activities. Offset8 expects to establish presence in Indonesia to assist with the development and monitoring of the Project.

In addition, Offset8 has already received expressions of interest from companies based in the Middle East and in East Asia that look to use biochar carbon credits for voluntary or compliance purposes.

In connection with the Transaction, Offset8 Capital Limited has acted as a financial advisor to Offset8 Holding Limited that will finance the Project.

Phil Rickard, CEO and Founder of Sawa, emphasized, "Our collaboration with Offset8 enables Sawa to advance its commitment to mitigating climate change by harnessing carbon capture technology through the transformation of agricultural waste into biochar. Moreover, this partnership addresses the urgent global challenge of food security by producing a valuable soil amendment." He further highlighted, "Indonesia emerges as an ideal ally in implementing this innovative solution, given its agricultural landscape and commitment to sustainability."

Ivan Mozharov and Jules Maitrepierre, Co-founders and Executive Directors of Offset8 have said: “The financing of the Sawa project marks a milestone in our journey to facilitate the gobal transition towards a low-carbon economy. It reflects our belief in the power of partnership and innovation to address the pressing challenge of climate change. By converting agricultural waste into valuable carbon credits, we are not only preventing harmful emissions, but also paving the way for Indonesia to become a leader in the global carbon market.”

About Offset8
Offset8 Capital Limited is an Abu Dhabi Global Market-based proprietary asset management firm and a financial advisor regulated by the Financial Services Regulatory Authority of the ADGM.

Offset8 seeks to finance climate mitigation and adaptation projects, with focus on mangrove restoration, reforestation and biochar. Of particular relevance will be projects that aim to support local communities in Africa and Southeast Asia and to contribute to both environmental conservation and sustainable economic development.

Offset8 is a member of the UAE Carbon Alliance and the ASEAN Alliance on Carbon Markets.

About Sawa
Sawa EcoSolutions (based in Singapore), and its Indonesian operating arm, Legasi Alam Indonesia, were founded in 2021 and specialize in sustainable agricultural waste management in Indonesia. With a clear vision, the company aims to establish 100 production facilities across Southeast Asia, removing 1 million tonnes of carbon dioxide annually to combat climate change effectively. By harnessing the abundant agricultural residue biomasses in the region, Sawa not only addresses waste management challenges but also plays a crucial role in supporting food security by repurposing these resources.

DISCLAIMER:
This press release is for general informational purposes only and should not be relied upon for any other purpose. Notwithstanding anything contained in this press release, this press release does not constitute, and no reader of this press release may treat the same as, an offer to sell, a solicitation or invitation for the sale and purchase of any securities, instruments or any other properties, and the information contained in this press release shall not form the basis of any offer or contract. Under no circumstances is this press release to be construed as an offering of an interest in any collective investment fund in any jurisdiction. No action has been taken to permit an offering of interests in any collective investment fund in any jurisdiction where action for that purpose would be required.

None of Offset8, its affiliates and their respective partners, members, employees, officers, directors, agents, advisers and representatives (collectively, the “Offset8 Group”) have any liability for, and neither assumes nor accepts responsibility in relation to, the use of, or reliance on this press release by any person. The Offset8 Group makes no representation or warranty as to the truth, accuracy or completeness of the information in this press release (including statements of opinion or expectation) nor shall have any liability (whether arising from negligence or otherwise) for any representations (express or implied) contained in, or for any omissions from, this press release or for any written or oral communications transmitted to the recipient (or its advisors or representatives).

Offset8 Capital Limited (“Offset8”), an Abu Dhabi Global Market-based proprietary asset manager and a financial advisor regulated by the Financial Services Regulatory Authority of the ADGM, is developing its footprint in Japan, building on its commitment to foster sustainable investment ecosystems that bolster local communities and biodiversity. This move comes at a crucial time, as Japan undergoes significant transformations in its carbon emission regulations.

Subject to receipt of applicable approvals, Offset8’s Co-Founder Jules Maitrepierre is expected to spend a significant portion of his time in the country to promote partnerships and collaborations with major Japanese enterprises, such as GX league members, aiming to facilitate a seamless transition through the regulatory updates, positioning Japanese firms at the forefront of environmental compliance and sustainability. It is expected that Munenori Horie, a Tokyo-based Director of Offset8, will assist Mr Maitrepierre in these efforts.

Unlike typical trading companies, that focus on short-term horizons, or consulting firms, that often advise clients without sharing in the risks of the investment strategies devised by such firms, Offset8 expects to invest its own capital, thereby shouldering the inherent risks.

Offset8 believes that its commitment to long-term, sustainable growth and its responsible investment approach will resonate deeply with Japanese investment values, which will facilitate Offset8’s entry into the Japanese market and the growth of its partnerships and collaborations in the country. This alignment with the Japanese ethos of prudent investing and partnership is expected to play a pivotal role in Offset8's expansion in the region.

Offset8 is strategically positioning itself in anticipation of Japan’s adoption of high-quality carbon credits within its compliance framework (“J-Credits”), mirroring initiatives adopted in Singapore. This initiative not only provides vital liquidity to the carbon credit market but also aims to enhance the exchange of credits between Japan and its partner countries. Such initiatives are pivotal in creating a more interconnected and robust global carbon market, furthering environmental goals on a larger scale.