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Lovells is advising international conservation group Flora & Fauna International (FFI) on a series of carbon-reduction PPP projects in developing countries.
FFI is involved in seven long-term projects under the Reducing Emissions from Deforestation and Degradation (Redd) scheme. This provides economic incentives for those who depend upon the forests to reduce deforestation.
FFI, a non-governmental organisation, will work with governments and communities to implement the projects, while Merrill Lynch and Macquarie Group will finance the projects and sell the carbon credits.
Christopher Norton, head of Lovells’ environmental and climate change practice, said: “Redd projects are more complex to set up [than the EU Emissions Trading Scheme and the Clean Development Mechanisms] because they involve national and local government, local indigenous tribes and credit traders coming together.”
The most advanced of the projects concerned is located in Indonesia’s Nanggroe Aceh Darussalam province, and is intended to conserve 750,000 hectares of forest over 30 years. Lovells’ Singapore-based partners James Harris and Amy Lee are providing local law advice.
Lovells is also advising FFI on its collaboration with the Macquarie Group on six further projects to be located in Africa, Asia and South America.