Why should I embark on a project with AfriCarbon in conjunction with other farmers and investors?
As will be seen from the questions and answers above there are a number of aspects to a carbon sequestration project and clearly many of these require particular skills and experience. AfriCarbon has at its disposal the intellectual capital of three scientists who are at the forefront of carbon sequestration in South Africa. This expertise is not only of a scientific nature but also practical and with specific knowledge and experience of land restoration and carbon sequestration in degraded land in the Eastern Cape.
All three scientist board members have published peer-reviewed scientific papers on thicket restoration and carbon sequestration, and have been directly involved in a large number of individual projects.
Economies of Scale
Financial viability studies have indicated that it is extremely difficult to create a viable restoration project on a small scale. There are a number of reasons for this:
- The planting costs per hectare are likely to be far more economical when done on a large scale basis.
- The initial project management and ongoing monitoring will similarly also be more cost effective with a larger project.
- Carbon accounting is an integral and extremely important part of the whole process. This is a costly exercise which can be prohibitively expensive for a small project but with a larger project will have significant economies of scale.
- The sale of carbon credits on a small scale is likely to be problematic particularly regarding obtaining full value. AfriCarbon has the expertise and network and will have the size to maximize the sale potential.
Despite the hardiness of spekboom, its growth can be adversely impacted by poor agricultural conditions, inappropriate soils and the external environment (e.g. frost). It is also a plant that is sought after by domestic animals and game.
As a consequence, expert knowledge is required to avert the risk of spekboom cutting mortality, and to ensure that the cuttings are only planted in environments that are suitable for spekboom-rich thicket establishment
Value of carbon credit
Carbon credits are in their infancy as a product, but at this stage it seems certain that the value of carbon credits will be partly influenced by the perceived quality of the credit. Put very simply, a carbon credit emanating from a respected source would be more highly valued than one that has been produced by a less respected source. It is believed that the credentials of AfriCarbon are such that a higher value will be achieved by working with AfriCarbon than with many other industry participants.
Flexible financial structure
AfriCarbon has designed a series of financial structures that can cater for the requirements of any farmer who wishes to pursue carbon sequestration by working together in a larger group with other farmers and investors. The structures available will be discussed on a one-on-one basis with each farmer and investor who shows serious interest in entering into a business relationship with AfriCarbon.