Reforestation carbon credits specialist Klimat X Developments [TSXV: KLX] says it has completed of all the milestones required for the second disbursement of USD 500,000 under a pre-purchase agreement it reached in June with an undisclosed Fortune 500 company.
Klimat X is an owner and operator of nature-based carbon assets that serves the growing demand for carbon credits from companies seeking to meet their net zero goals.
Klimat X achieves this by investing in the exploration, restoration and management of terrestrial and marine systems that can either be protected to enhance the sequestration of greenhouse gases or restored from a degraded status to fully productive ecosystems.
Klimat X has developed a large-scale rewilding reforestation project in Sierra Leone, for an initial area of 5,000 hectares, which can be extended by a further 20,000 hectares.
The initial project area of 5,000 ha will produce up to 1.9m tonnes of validated and verified Verra carbon credits over 30 years. The total pre-purchase amount will be repaid through the delivery of validated and verified carbon credits to the pre-purchaser.
Klimat X CEO James Tansey explained: “This second milestone showcases our successful planting over the summer of 2023 and demonstrates our ability to meet the standards expected by one of the world’s largest carbon credit buyers. This is a major milestone and demonstrates how carbon credits can deliver real reductions in greenhouse gas emissions. Based on the success of the last 12 months of activity we are planning how best to rapidly scale this unique programme of forest restoration.”
Meet Klimat X at our Beyond the Channel investor event
James Tansey, CEO of Klimat X, will be speaking at our first investor event in London. Intended for professional investors and wealth managers, the event will be showcasing companies, themes and CEOs that are shaping the agenda in the small cap space. If you are a professional or sophisticated investor interested in attending please register your interest for a ticket here.
What are the Klimat X milestones?
The company has completed 1000 hectares in the 2023 planting season and has submitted the Project Design Document (PDD) for final approval. The funds are dedicated to the ongoing management and maintenance of the 1,400 hectares total area planted in 2022 and 2023 and to prepare for the next phase of planting during the rainy season in 2024.
Selected indigenous species seeds will be harvested, prepared, sown and nursed to viable seedlings in the companies’ nurseries in the leadup to the planting season. All planting and land owner agreements have been overseen by an independent party to ensure that the agreement meet the conditions of Free Prior and Informed Consent.
Klimat X has mapped and verified almost 20,000 hectares of land for restoration and is working with an NGO, Namati, to complete land ownership agreements under independently observed Free and Prior Informed Consent. The company said that there are large areas of degraded land that could be restored under this same model and it is actively developing a mangrove restoration and conservation project covering up to 10,000 hectares.
Klimat X is dedicated to environmental stewardship and its robust pipeline of carbon credit projects makes it a trusted partner to the largest buyers of carbon credits in the world, in the fight against climate change. Klimat X deploys capital at risk under various arrangements (including cooperation, assignment, and production sharing agreements) with government engagement in various suitable jurisdictions around the world including Sierra Leone, Yucatan, Guyana and Suriname.
