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 4th 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.
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