Carbon Streaming Announces Further Update on Rimba Raya Project
Carbon Streaming Corporation (Cboe CA:
NETZ)
(OTCQB:
OFSTF) (FSE:
M2Q)
(“
Carbon Streaming” or the
“
Company”) today provided an update on the status
of the Forest Utilization Business License (the “
Concession
License”) at the Rimba Raya project. On April 26, 2024,
the Company announced that it was informed of two third-party media
reports that claimed that PT Rimba Raya Conservation (“
PT
Rimba”), the local concession holder for the Rimba Raya
project, had its Concession License revoked by the Indonesian
Government’s Ministry of Environment and Forestry (the
“
MOEF”). The Company has since learned that the
Concession License was revoked by the MOEF through an
administrative decree that was issued only to the addressee and is
therefore not a publicly accessible document.
InfiniteEARTH Limited and its Indonesian
subsidiary PT InfiniteEARTH Nusantara, the project proponent of the
Rimba Raya project (collectively “InfiniteEARTH”),
with whom the Company had previously entered into the carbon credit
streaming agreement covering the Rimba Raya project (the
“Rimba Raya Stream”), has operated the Rimba Raya
project through a series of agreements with PT Rimba, its local
partner in Indonesia and the direct legal holder of the concession
rights granted by the Indonesian Government pursuant to the
Concession License.
The Company confirmed the revocation of the
Concession License by the MOEF through details about the decree
published on the MOEF website in March 2024. PT Rimba has publicly
stated that it has complied with Indonesian regulations on carbon
trading and otherwise disputed the basis of the revocation of the
Concession License, and the Company has confirmed that PT Rimba has
filed a claim against the MOEF challenging the revocation of the
Concession License before the State Administrative Court of
Jakarta. In connection with such challenge, PT Rimba has also filed
requests for the suspension of the implementation of the MOEF
decree in respect of the revocation of the Concession License
pending judicial determination of such appeal (which relief, to the
knowledge of the Company, has not been granted to date). A final
ruling from the State Administrative Court of Jakarta is currently
anticipated during June 2024 (which ruling is subject to potential
appeal by the parties).
Based on MOEF documentation and records of the
State Administrative Court of Jakarta, the Company has determined
with its advisors that the Concession License was revoked by the
MOEF on the basis that PT Rimba had transferred the Concession
License to a third party without MOEF approval, that its carbon
trading activity covered a land area greater than the area covered
by the terms of the Concession License, and for non-payment of
certain non-state revenue taxes payable to the MOEF under
applicable Indonesian regulatory requirements.
Carbon Streaming is assessing the ongoing
situation and is engaged with our partners and local advisors.
Carbon Streaming has been advised by InfiniteEARTH that it is
taking steps in respect of the revocation of the Concession License
and is also seeking clarifications from the MOEF as to the current
status of the Concession License and the ramifications of the
revocation, including on the status of InfiniteEARTH as the project
proponent of the Rimba Raya project under the government-operated
carbon registry, Sistem Registri Nasional Pengendalian Perubahan
Iklim (“SRN”), and the impact on their rights to
both historical and future credits as established through the
collaboration agreement with PT Rimba.
At the present time, the Company is evaluating
all legal avenues to protect its investment in the Rimba Raya
project and to strictly enforce its legal and contractual rights
under the Rimba Raya Stream. In addition, Carbon Streaming will
also continue to work closely with InfiniteEARTH on its active
engagement with its local partners, the MOEF and the Indonesian
Government to attempt to preserve the continuity of the Rimba Raya
project.
For a comprehensive discussion of the risks,
assumptions and uncertainties that could further impact the Rimba
Raya project and the Rimba Raya Stream, including without
limitation, concerning the legal status of the Concession License
and the Company’s Rimba Raya Stream, investors are urged to review
the section of the Company’s management’s discussion and analysis
for the three months ended March 31, 2024 dated as of May 15, 2024
entitled “Strategy and Outlook – Indonesia Update” and the section
of the Company’s Annual Information Form dated as of March 27, 2024
entitled “Risk Factors”, copies of which are available on SEDAR+ at
www.sedarplus.ca.
About Carbon Streaming
Carbon Streaming aims to accelerate a net-zero
future. We pioneered the use of streaming transactions, a proven
and flexible funding model, to scale high-integrity carbon credit
projects to advance global climate action and additional United
Nations Sustainable Development Goals. This approach aligns our
strategic interests with those of project partners to create
long-term relationships built on a shared commitment to
sustainability and accountability and positions us as a trusted
source for buyers seeking high-quality carbon credits.
The Company’s focus is on projects that have a
positive impact on the environment, local communities, and
biodiversity, in addition to their carbon reduction or removal
potential. The Company has carbon credit streams and royalties
related to over 20 projects around the world, including
high-integrity removal, reduction and avoidance projects from
nature-based, agricultural, engineered and community-based
methodologies.
To receive corporate updates via e-mail, please
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ON BEHALF OF THE COMPANY:Justin
Cochrane, President & Chief Executive Officer Tel:
647.846.7765info@carbonstreaming.com www.carbonstreaming.com
Investor
Relationsinvestors@carbonstreaming.com
Mediamedia@carbonstreaming.com
Cautionary Statement Regarding Forward-Looking
Information
This news release contains certain
forward-looking statements and forward-looking information
(collectively, “forward-looking information”)
within the meaning of applicable securities laws. All statements,
other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or
anticipates will or may occur in the future, are forward-looking
information, including, without limitation: statements with respect
to the status of the Concession License held by PT Rimba and the
evaluation of legal avenues to protect the Company’s investment in
the Rimba Raya project and to enforce its legal and contractual
rights; InfiniteEARTH’s status as the project proponent of the
Rimba Raya project under the SRN registry and the status of the
Rimba Raya project’s validation under the SRN registry; and
statements with respect to the timing of a final ruling from the
State Administrative Court of Jakarta.
When used in this news release, words such as
“estimates”, “expects”, “plans”, “anticipates”, “will”, “believes”,
“intends” “should”, “could”, “may” and other similar terminology
are intended to identify such forward-looking statements. This
forward-looking information is based on the current expectations or
beliefs of the Company based on information currently available to
the Company. Forward-looking information is subject to a number of
risks and uncertainties that may cause the actual results of the
Company to differ materially from those discussed in the
forward-looking information, and even if such actual results are
realized or substantially realized, there can be no assurance that
they will have the expected consequences to, or effects on, the
Company. They should not be read as a guarantee of future
performance or results, and will not necessarily be an accurate
indication of whether or not such results will be achieved. Factors
that could cause actual results or events to differ materially from
current expectations include, among other things: statements with
respect to the status of the Concession License held by PT Rimba
with the MOEF; general economic, market and business conditions and
global financial conditions, including fluctuations in interest
rates, foreign exchange rates and stock market volatility;
volatility in prices of carbon credits and demand for carbon
credits; change in social or political views towards climate
change, carbon credits and ESG initiatives and subsequent changes
in corporate or government policies or regulations and associated
changes in demand for carbon credits; limited operating history for
the Company’s current strategy; risks arising from competition and
future acquisition activities; concentration risk; inaccurate
estimates of growth strategy; dependence upon key management;
impact of corporate restructurings; reputational risk; failure or
timing delays for projects to be registered, validated and
ultimately developed and for emission reductions or removals to be
verified and carbon credits issued (and other risks associated with
carbon credits standards and registries); foreign operations and
political risks including actions by governmental authorities,
including changes in or to government regulation, taxation and
carbon pricing initiatives; uncertainties and ongoing market
developments surrounding the validation and verification
requirements of the voluntary and/or compliance markets; due
diligence risks, including failure of third parties’ reviews,
reports and projections to be accurate; dependence on project
partners, operators and owners, including failure by such
counterparties to make payments or perform their operational or
other obligations to the Company in compliance with the terms of
contractual arrangements between the Company and such
counterparties; failure of projects to generate carbon credits, or
natural disasters such as flood or fire which could have a material
adverse effect on the ability of any project to generate carbon
credits; volatility in the market price of the Company’s common
shares or warrants; the effect that the issuance of additional
securities by the Company could have on the market price of the
Company’s common shares or warrants; global health crises, such as
pandemics and epidemics; and the other risks disclosed under the
heading “Risk Factors” and elsewhere in the Company’s Annual
Information Form dated as of March 27, 2024 filed on SEDAR+ at
www.sedarplus.ca.
Any forward-looking information speaks only as
of the date of this news release. Although the Company believes
that the assumptions inherent in the forward-looking information
are reasonable, forward-looking information is not a guarantee of
future performance and accordingly undue reliance should not be put
on such statements due to the inherent uncertainty therein. Except
as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking
information, whether as a result of new information, future events
or results or otherwise.
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