SINGAPORE, June 5, 2024 – Imperative has secured funding for the first phase of its ambitious project aimed at restoring 100,000 hectares of land in South Africa. The company has made a Final Investment Decision on Phase 1 of the large-scale ecosystem restoration project, which will focus on restoring 10,000 hectares with financial backing from Mirova, GenZero, and Rubicon Carbon LLC.
The initial phase is designed to replant Portulacaria afra, commonly known as spekboom, across a substantial area in the Eastern and Western Capes. Spekboom is a native succulent renowned for its resilience in semi-arid environments and its ability to enhance biodiversity. The project employs the Verra VM0047 methodology, which aims to sequester more than 30 million tons of CO2 equivalent at full scale.
Funding for this phase is secured through a syndicated senior secured stream agreement led by Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable investing. Alongside Mirova, GenZero, a Temasek-owned decarbonization investment platform, and Rubicon Carbon are also significant contributors. This initial funding is expected to de-risk the broader 100,000-hectare project, positioning it for future expansion.
Imperative has established a local subsidiary staffed with experienced leadership to oversee the project. The company has also partnered with NatCarbon Africa, a South African restoration specialist, ensuring that the project benefits from deep local conservation expertise.
The project’s goals extend beyond environmental restoration, aiming to generate significant foreign direct investment, create training and employment opportunities, and support local communities and conservation initiatives. At its full scale, the project is expected to remove over 30 million tons of carbon dioxide equivalent, making a significant contribution to global carbon reduction efforts.
Imperative’s approach integrates advanced project planning, execution, and physical asset management technologies, providing high transparency and efficiency. This methodology sets a new benchmark for ecological restoration and carbon credit projects globally.
Scobie Mackay, CEO of Imperative, expressed optimism about the project, stating, “We aspire to showcase how large-scale native species restoration can be implemented with the same rigor as projects in more mature sectors. We are grateful for the support of our high-quality funders and look forward to demonstrating significant impact on the ground.”
Charlotte Lehmann, Senior Investment Director at Mirova, highlighted the project’s alignment with their environmental strategies, while Frederick Teo, CEO of GenZero, emphasized its importance for integrating nature into economic planning and enhancing local livelihoods. Tom Montag, CEO at Rubicon Carbon, praised the project for its ecological and community benefits.
Carbon removal credits from the project will be verified as Verra ARR carbon units, which are highly sought after in the international voluntary carbon market and can also be utilized within South Africa’s carbon tax scheme, offering flexibility for project funders.
This landmark project not only underscores Imperative’s commitment to large-scale, high-quality environmental projects but also sets a new standard for ecological restoration and carbon credit generation globally.