NEW FORESTS COMPANY: Forestry-based climate change solutions. A presentation by Phoebe Sullivan, Carbon Manager

Transcription

1 NEW FORESTS COMPANY: Forestry-based climate change solutions A presentation by Phoebe Sullivan, Carbon Manager

2 COMPANY OVERVIEW NFC is building one of Africa s premier, sustainable forest and wood product companies, diversified across geographies, markets and products, and underpinned by a strong corporate responsibility strategy. LOCATION Operating in 3 African countries: Tanzania, Uganda and Mozambique. Projected to expand into Rwanda and Kenya by Operational since OUR PROJECTS IN AFRICA THE BUSINESS Growing sustainable timber resources and delivering high quality, value-added wood products into the East African market. UGANDA TANZANIA RWANDA MOZAMBIQUE ASSETS By the end of 2010 the company expects to have a total forest estate of approximately 24,500 hectares and a workforce of more than 3,000. Over 6,000 Ha under FSC certification and expanding. TEAM Distinguished management team with proven African experience. CARBON Carbon key to company s financial strategy, with a project in its advanced stages in Uganda, and looking to expand across the entire plantation portfolio as new assets are acquired.

3 TANZANIA: PROFILE NFC is developing a world-class, forestry carbon program in rural Tanzania, with minimum land-holdings of 10,000 hectares and projected holdings of 24,000 PLANTATION TOTAL HECTARES LAND TYPE TIMELINE SPECIES PLANTED CERTIFICATION LAND ATTRIBUTES Lukosi Kilolo District, Iringa. 7,000 hectares secured, negotiating a minimum of 7,000 more granted right of occupancy. Greenfield Planting 1500 hectares per annum, with initial planting initiated in December % Pine, 33% Eucalyptus Either Forest Stewardship Council or Climate, Community and Biodiversity Alliance Standard Degraded grasslands. Wetland and forest patches to be maintained for conservation purposes

4 CARBON CREDIT OUTPUT MARKET ORIENTATION EXPERTISE Preliminary and conservative calculations demonstrate a minimum of 1.8 million tons of CO2 emissions reductions (10,000 hectares of land) Adoption of a CDM approved-methodology, but entrance into the voluntary market under VCS NFC uses advanced techniques for measuring tree growth ensuring accuracy of carbon calculations. Data is managed in the state of the art MicroForests system, with attention to cross-checking data and running regular plantation audits to monitor accuracy.

5 TANZANIA: CARBON OVERVIEW NFC s project management expertise will allow for timely delivery offorestry credits to the voluntary market. PROGRESS TO-DATE EIA performed Baseline community assessment finalized and Participatory RuralAppraisals underway Preliminary land eligibility analysis (SPOT image analysis) completed Important learning from previous carbon development in Uganda 2011 Project Cycle Timeline MARCH APRIL JULY SEPTEMBER

6 CORPORATE GOVERNANCE APPROACH NFC is committed to generating VERs with verifiable social and environmental co-benefits ensuring delivery of charismatic credits. UNDERSTANDING LOCAL CONDITIONS NFC employs a local Community Development Officer for each plantation, and runs participatory rural appraisals to gather local input and knowledge for responsible project design CSR PERSPECTIVE Direct development interventions supports the company s superior form of long-term risk management - NFC builds relationships, not fences. UGANDA In Uganda, NFC has built schools in communities surrounding plantation, is engaged in an outgrowers scheme to encourage responsible natural resource management, actively employs locals, recently launched health clinics for local employees and neighbours and supports the generation of new livelihood opportunities. TANZANIA Completed the baseline community assessment and running PRAs tailored programs will be rolled out in 2011, adapted to local needs.

7 WHO WE ARE 87% ownership 100% ownership Similar hierarchy for Mozambique and Ugandan operations

8 WHO WE ARE Highly experienced leadership team with complementary skills and expertise CEO J Ozanne CFO Q Scorgie Head of Forests A Greeff Head of Planning L Cunningham Commercial Manager G Garz Head of CSR K Sharum Head of HR E Viviers Group Financial Accountant S Touffie GM Ug T Kachale Planning Forester W Jacobs Carbon Manager P Sullivan Ug CSR A Kyabawampi CO Secretary O Burton GM Tz J Lawrie Tz CDO Group Financial Controller D Sharma GM Moz J Potgieter Moz CDO Country Finance Teams

9 WHO WE ARE INSTITUTIONS PROFESSIONAL INVESTORS Shareholder in NFC-Uganda Shareholder in NFCH Equity and long-term debt investment in Uganda Debt investment in Uganda ROBERT DEVEREUX founding shareholder of The Virgin Group and former Chairman of Virgin Entertainment JON AISBITT former Partner and Managing Director of Goldman Sachs Investment Banking Division STANLEY FINK former Chief Executive of Man Group PLC PETER WHEELER Head of Wholesale Banking for the West for Standard Chartered PLC A strong Board of Directors with a proven track record in major organisations 9

10 MONITORING AND REPORTING Operational risk mitigated through institutionalised management systems DELIVERY QUALITY INTEGRATED MANAGEMENT SYSTEM (IMS) NFC QUALITY- BEST PRACTICE MICROFOREST COST An integrated management system -managing risk on a daily basis 10

11 FINANCIALS Timber assets represent a long-term investment carbon revenues can rationalize the sizeable upfront capital required to establish a large-scale plantation.

12 CARBON ASSET OPPORTUNITIES Abundant opportunity to access NFC s carbon assets, throughout various stages of the project cycle. NFC seeking early support to facilitate the research and projectdesign phases. PROJECT DESIGN PHASE Looking to reward risk-takers POST-VERIFICATION