Development of A/R CDM Projects Optimized to Serve Corporate Social Responsibility (CSR) Needs

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)Development of A/R CDM Projects Optimized to Serve Corporate Social Responsibility (CSR) Needs
FYFY 2007
Main Implementing EntitySumitomo Forestry Co., Ltd.
FS Partner(s)Ministry of Forestry, CERINDO, PT Kutai Timber Indonesia
Location of Project ActivityYogyakarta/ East Java, Republic of Indonesia
Summary of FS ReportSummary (PDF460KB)
Description of Project Activity
  1. SS-AR-CDM project (100ha) will be implemented along the coast aimed at improving agricultural productivity by preventing wind and sand damage and moderating tsunami damage.
  2. AR-CDM project will be implemented on around 1,200ha of deforested land aimed at improving CO2 absorption, preventing soil runoff, recharging water resources, protecting biodiversity and improving the area's value as an ecotourism destination.
Targeted GHGCO2
Category of Project ActivityAfforestation/Reforestation
Duration of Project Activity/ Crediting Period2008-2028/20 years
Baseline Methodology/ Additionality
  1. Both the biomass and soil carbon quantities in the project area are virtually zero as the land is beach with sparse growth of grass. This means that without project activities, carbon accumulation in the project area would remain unchanged.
  2. As a baseline scenario, it is assumed that without project activities the devastation of the national park will continue. Because it is a national park, it can be presumed that it is unattractive to investors.
Estimation of GHG Emission Reductions
  1. 12,275tCO2
  2. 512,000tCO2
Monitoring Methodology
  1. AR-AMS0001
  2. AR-AM0001
Environmental Impact AnalysisNo
Issues and Tasks for Project Realisation
  1. Sumitomo Forestry will provide funding for CDM-related administration, planting operations and overseeing planting. The Ministry of Forestry will bear responsibility for materials to be used in the planting project such as seedlings and associated costs. The plan is that the two bodies will each receive 50% of the credits.
  2. With regard to planting costs for this project, Company A will be responsible for social contribution activities, and Sumitomo Forestry will bear all CDM-related costs.