Strategic Agreement Aims to Bolster Climate Action through Focus on Afforestation, Reforestation & Revegetation Carbon Projects in Mindanao
VANCOUVER, BC / ACCESSWIRE / June 24, 2024 / Ostrom Climate Solutions Inc. ("Ostrom Climate" or the "Company") (TSX-V:COO)(Frankfurt:9EAA), a global carbon project developer and climate solutions company, today announced a Cooperation Agreement with Klima 1.5 Corp ("Klima"), a carbon management company in the Philippines.
Ostrom Climate and Klima have committed to producing a conceptual plan and feasibility study for nature-based solutions (NBS) carbon projects in the Philippines, particularly in Mindanao, the southernmost major island in the country and the second largest, after Luzon. This strategic alignment aims to support project execution and maximize environmental and economic benefits.
Strategic Focus on Afforestation, Reforestation & Revegetation (ARR) Projects
Both Ostrom Climate and Klima will focus on developing NBS carbon projects that utilize natural processes and ecosystems to capture and store carbon, thereby reducing greenhouse gas emissions and supporting biodiversity. The key focus of the Cooperation Agreement centers around Afforestation, Reforestation & Revegetation (ARR) projects, which are essential for capturing and storing carbon, enhancing biodiversity, and supporting sustainable development??.
The Philippines, with its rich biodiversity and vast natural resources, presents significant NBS opportunities. Mindanao, which spans over 9.75 million hectares, is particularly promising due to its extensive forest cover and diverse ecosystems. The target project areas are primarily active logging sites with licenses and management plans in place.
These initiatives will not only contribute to reducing greenhouse gas emissions but will also support local communities through enhanced livelihoods and resilience to climate change. Management believes that the development of NBS can serve as a model for similar projects across the Philippines, driving national and global climate goals.
Jane Boles, International Land Use Director at Ostrom Climate, said "Our deepening partnership with Klima is a testament to our shared commitment to sustainable development and climate action. The combined expertise and resources of both organizations will enable us to deliver high-quality carbon projects that benefit both the environment and local communities in the Philippines."
Scope and Responsibilities
The agreement outlines the responsibilities of each party in identifying and developing potential project areas. Klima will continue to manage local stakeholder engagement, provide legal and regulatory support, and ensure the timely execution of project management duties. Ostrom Climate will bring its technical expertise, socio-environmental assessments, and economic modeling to the partnership, ensuring that all projects meet high standards of environmental performance and financial viability. Management believes that the agreement will also pave the way for potential joint ventures, subject to favorable feasibility study results and corporate approvals.
Expanding Ostrom Climate's Established Presence in the Philippines
On June 5, 2024, Ostrom Climate unveiled its evolved business strategy to focus on high-quality carbon project development, aiming to leverage the anticipated exponential growth of carbon markets by 2050. This strategic shift involved transitioning from a project development and carbon management consultancy to a lead equity partner in carbon projects. A significant initiative under this strategy was the launch of a flagship Climate-Smart Agriculture project in the Philippines. In collaboration with the National Irrigation Administration (NIA) in the Philippines, the Company announced the Upper Pampanga River Climate-Smart Agriculture Rice Project (UPRIIS).
The UPRIIS project is set to transform rice cultivation across approximately 100,000 hectares in Central Luzon, Philippines. By utilizing Alternate Wetting and Drying (AWD) practices, the project aims to reduce methane emissions by up to 48% per hectare, aligning with sustainable water management practices and global climate goals. According to the European Commission, methane is estimated to be between 28 to 84 times more effective at trapping heat in the atmosphere versus carbon dioxide (CO2).
Building on the foundation laid by the UPRIIS project, the expanded cooperation agreement with Klima will enable Ostrom Climate to leverage its established resources and presence in the Philippines. This larger footprint will provide Ostrom Climate with operating leverage to execute more high-quality carbon projects across the country. Management believes that the collaboration with local partners and recognition by government authorities and the country's largest industrial players will solidify Ostrom Climate's capacity to drive substantial environmental impact through innovative and sustainable solutions.
"The collaboration with Klima represents a significant step forward in our mission to drive impactful climate action, adding to our established Climate-Smart Agriculture presence in the country," said Phil Cull, CEO of Ostrom Climate. "By widening our presence in the Philippines, we will be better positioned to develop and implement more comprehensive solutions that will address both environmental and socio-economic challenges."
About Klima 1.5 Corp.
Klima is the Ayala Group's platform for its carbon management business through nature-based solutions. Publicly-traded Ayala Corporation ("Ayala" PSE: AC) is one of the largest conglomerates in the Philippines. It has a presence in real estate, banking, digital solutions, and renewable energy. It likewise has a growing presence in healthcare, logistics, and mobility as well as investments in industrial technologies, water, education, and technology ventures. Klima advises that its association with Ayala enables it to execute large-scale projects by leveraging Ayala's extensive network, resources, and industry expertise. This partnership positions Klima to effectively address environmental challenges while promoting economic growth and social equity in the Philippines, with Ostrom Climate as a key partner.
About Ostrom Climate Solutions Inc.
Ostrom Climate is one of North America's leading providers of carbon project development and management services, climate solutions, and carbon credit marketing. Over the past 12 years, Ostrom Climate has validated and verified forest carbon projects globally for voluntary and regulated markets, having developed 16 million acres of forest land for conservation and monetized over 10 million carbon credits. Based out of Vancouver, B.C., Canada, the Ostrom Climate team has a global reach, has worked with over 200 organizations globally, including Fortune 500 companies, managed projects in partnership with indigenous stakeholders and has extensive on-ground experience in emerging markets.
Ostrom Climate is focused on developing high-quality carbon projects that have a positive impact on the environment, local communities and biodiversity. Ostrom Climate is publicly listed on the TSX Venture Exchange (COO) and the Frankfurt Stock Exchange (9EAA).
Please visit us at www.ostromclimate.com.
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For more information regarding the Company, please contact:
Tej Virk
Chief Strategy Officer
Ostrom Climate Solutions Inc.
322 Water St #400, Vancouver, BC V6B 1B6, Canada
e-mail: tej.virk@ostromclimate.com
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This news release contains certain statements that may be deemed "forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
SOURCE: Ostrom Climate Solutions Inc
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