First Carbon Credit Sale from Terraformation’s Seed to Carbon Forest Accelerator
London, 18 June 2024 – Terraformation, the native forest restoration company founded by former Reddit CEO Yishan Wong, has partnered with Grosvenor’s UK property business on the sale of the initial Verified Carbon Units (VCUs) from Terraformation’s Seed to Carbon Forest Accelerator. Grosvenor’s investment into reforesting mangroves in Keta Lagoon, Ghana, will deliver 15,000 tCO2e between now and 2030, at an average price just below $50 (USD) per tonne, with payments based on project milestones to support the scaling of the forest restoration over the first two years. The project will sequester an estimated more than one million tCO2e by 2064.
Known as Regenerative Development of Anlo Wetlands (ReDAW), the mangrove project is implemented by ReDAW Ltd and ReDAW Foundation and will restore 1,536 hectares of mangroves on degraded wetlands and bring significant community benefits. These benefits include training 350 local people and creating full-time jobs, with over 50% held by women, to plant and care for the mangroves and broader ecosystem through regenerative aquaculture, agriculture and apiculture (beekeeping). Increased food and community security, environmental resilience and improved resource management are a few of the many direct impacts the mangrove restoration project will have on the chiefs, elders and local communities.
Joella Korczak, Chief Programme Officer, ReDAW, said: “The land in this area is prone to floods in the wet seasons and extended drought periods in the dry season. Restoring mangrove forests offers flood resilience through natural water management. The improved ecological function and enhanced fisheries resulting from more mangroves contribute to increased food production, ensuring better food security for the community. Restoring and preserving mangrove ecosystems will enhance community well-being while creating alternative livelihoods.”
The ReDAW project represents Terraformation and Grosvenor’s commitment to nature-based solutions to meet ambitious climate and biodiversity goals through investments that increase capacity and ensure the quality needed to grow the voluntary carbon market. The project is now available on Verra and could potentially expand to restore an additional 8,445 hectares of the Keta Lagoon area.
Grosvenor Property UK was the first European real estate company to have a validated long-term science-base target and one of the few to have a published offset strategy. Reducing carbon emissions is their priority, and they have already delivered a 32% reduction in emissions across all scopes. The company understands the importance of mitigating emissions they can’t immediately reduce, and have committed to sourcing high-quality carbon credits with strong co-benefits for their entire carbon footprint by 2025, taking a climate-positive approach on their pathway to net zero.
Seed to Carbon Forest Accelerator’s High-Quality Projects
The ReDAW project marks the first VCU sale from Terraformation’s Seed to Carbon Forest Accelerator. This biodiversity-focused, carbon-funded program supports global forestry teams to develop shovel-ready native reforestation projects. Funding and support, including early-stage investment, feasibility assessments, training in native seed collection and storage and other capacity building techniques, are offered to Accelerator participants to create resilient and biodiverse projects that support local ecosystems.
The Seed to Carbon Forest Accelerator brings quality carbon credits to the market by creating high-integrity forestry projects that prioritize biodiversity and tangible benefits to local communities. These projects can restore trust and transparency in the voluntary carbon market. Terraformation’s projects reflect its investment in due diligence, including a robust methodology and rigorous review of carbon projects across specialized teams in finance, operations, carbon science, climate impact and community and social benefits.
Yishan Wong, CEO of Terraformation, said: “On average, only 11 new reforestation or afforestation projects enter the market a year, and out of those, only a few are native-species restoration projects. Our Accelerator combines the speed and scale that Silicon Valley is known for with forestry expertise to unlock access to funding and provide training, tech and seeds to start creating a forest before a single tree goes into the ground."
“Companies like Grosvenor, which are investing upfront to build new forests – not just buying credits from trees already sequestering carbon – signal their commitment to making an impact and a significant investment in their climate and nature targets. I hope to see many other companies follow suit.”
To date, the Accelerator has guided 14 native reforestation projects, with 12 more to come by the end of 2024, supporting the restoration of nearly 25,000 hectares of biodiverse forests, offering economic benefits to the local communities that steward the forests. Forestry teams that move forward are provided the opportunity to develop high-quality forestry projects. These forestry projects will be available to funders in the coming months.
Commitment to Community and Capacity for Nature-based Solutions
Grosvenor is leading the way among corporate climate investors in beyond-value-chain mitigation projects that have community benefits, biodiversity and transparency as core values. Partnering with Terraformation, which works with established forestry teams to produce high-quality, verified carbon credits, Grosvenor delivers real climate impact by funding the most critical stage of a native reforestation project’s lifecycle: the first planting.
The funding to restore forests at scale goes beyond putting a tree in the ground. It is a commitment to capacity building, where communities develop skills, abilities and resources to unlock the full potential of nature-based solutions and increase project success and climate impact. Strengthening investments in future forest projects includes equitable financial opportunities and climate equity to landowners and local communities.
Andy Haigh, Director of Climate Positive Solutions, Grosvenor, said: “Absolute emissions reductions remain our priority, but corporations cannot ignore the emissions that are more difficult to reduce. We are committed to thinking long term in sourcing high-quality carbon offsets and want to work with partners with integrity and deliver significant environmental and community co-benefits through the projects we support. We see value in helping to develop and scale projects, because early-stage funding is desperately needed for the sector to grow, plus it allows us to be more selective in finding projects that meet our due diligence criteria. We have been impressed with the integrity Terraformation has taken in developing this project and we look forward to working with them in its delivery.”
Investment in Mangroves for Ghana’s Coastal Communities
Mangroves play a significant role in Ghana’s coastal communities, offering opportunities for sustainable livelihoods that can boost local economies. Rapid coastal development, deforestation of mangroves for agricultural purposes and increased use of timber for fuel threaten the livelihoods of communities, contributing to Ghana’s 30% forest loss in the past 20 years.
Lawrence Tetteh Oclo, District Manager, Keta Lagoon-Ramsar Site of the Wildlife Division of the Forestry Commission, said: “Our focus on supporting increased investments in reforestation initiatives is to position Ghana as a hub for innovative green projects like ReDAW. These projects offer substantial economic benefits, driving both sustainable development and job creation, and contribute to the fight against climate change. Replanting and restoring degraded mangrove forests help reverse the damage caused by deforestation and contribute to Ghana’s pledge to restore 2 million hectares of deforested and degraded land by 2030.”
In addition to enhancing biodiversity and improving water quality, mangroves are one of nature’s most efficient carbon sinks, sequestering up to four times more carbon than terrestrial forests.
