THE KAMPAR CARBON PROJECT

OVERVIEW
• This is the first REDD-Plus program financed by a private company in Indonesia

• Unique public/private partnership between environmental leader Carbon Conservation and Asia Pulp
and Paper, with support of the Indonesian government to re-allocate plantation land

• APP is the first company to allocate pulpwood concession area for carbon sink project development

• This is one of many innovative initiatives APP invests in as part of its comprehensive commitment to
building a sustainable business while conserving Indonesia’s natural habitats

• Tackles the climate change challenge by preserving peat swamp forest to create new
conservation areas

• Preserves 15,640 hectares of rich and bio-diverse peat swamp forest of Semenanjung Kampar

• Sequesters 2.4 million tons/yr CO2e over 33 years

• Protects the area for natural flora and fauna

• Revenues from carbon credits are reinvested to promote economic opportunity and
conservation programs

• Jobs will be created to maintain and protect the Kampar Carbon Reserve

• Environmental protection initiatives will be financed

1.
About Carbon
Conservation
Carbon Conservation (CC) is a pioneering Asian
Australian company based in Singapore with car-
bon projects around the world. Carbon Conserva-
tion is a world leader in avoided deforestation car-
bon credits. The organization has a:
• Developed one of the pulp and paper industry’s strictest set of
protocols to combat illegal logging in 2003.
• World-changing vision, momentum and leadership:
-Forests must be valued for CO2, biggest untapped carbon
finance opportunity
• Leading financial track record:
-Prevented deforestation on 13,000 Ha then sold 1.1M
tCO2e to Rio Tinto for $3M
-Saved 100M tCO2e/ 750K Ha in Aceh then sold $9M -
$432M to Merrill Lynch
• A history of breakthrough projects
RIO TINTO:
As a pioneer in the commercialization of forest based carbon offsets,
Carbon Conservation has successfully created, validated and sold
more than a million tons of abatement to Rio Tinto Aluminum in
2007 through its wholly owned subsidiary The Carbon Pool. This
project, the world’s first commercial deal for REDD+ (Reduced Emis-
sions from Deforestation and Forest Degradation), was synchronized
with the National Carbon Accounting Scheme (NCAS) of Australia
and registered with the Australian Government’s Greenhouse Office
under the Greenhouse Friendly Scheme.
ACEH PROVINCE:
Carbon Conservation worked with the government of Aceh Province,
Indonesia, to develop the Ulu Masen Ecosystem Project, a REDD+
initiative that became the world’s first REDD+ project to be indepen-
dently validated under the standards of the Climate, Community
and Biodiversity Alliance. This globally recognized project resulted in
Environmental Finance Magazine’s Carbon Deal of the Year in 2008,
when Merrill Lynch signed the USD9 million emissions reductions
purchase agreement, which will range up to USD432 million.
• A record of public/private partnerships
Carbon Conservation has forged public private partnerships that
are essential for the successful implementation of carbon finance
and investment, especially in the forestry sector. For example, CC
is a partner in the Ulu Masen Ecosystem Project, the cornerstone
initiative of the Aceh Green Economic Development and Investment
Strategy, coordinating a strong community, climate and biodiversity
platform for all projects (primarily agriculture and forestry) under the
Aceh Green umbrella.
• A history of carbon finance and investment
Carbon Conservation brings private sector experience to advising
key government stakeholders in developing carbon finance strate-
gies. This includes strategies to attract foreign investment, identify
promising sectors for initial carbon investment, and guidance on
regulatory and legal work needed to commercialize carbon projects.
• Commitment to stakeholder participation and
policy engagement
Carbon Conservation’s participation in public-private initiatives,
including Aceh Green, Papua Green, and Suriname Green, has
included extensive stakeholder analysis and strategies for public
engagement. At the same time, it has actively sought opportunities
to promote partners in policy dialogues that have a strategic impact
on the projects.
• A history of awards and recognition
Carbon Conservation has had numerous successes. Its high profile
carbon finance projects have been well documented in the media via
articles in the Wall Street Journal, Fortune Magazine and others. The
group’s CEO, Dorjee Sun, has been named one of TIME magazine’s
Environmental Heroes of the Year 2009 and was featured in the
National Geographic documentary “The Burning Season,” narrated
by Hugh Jackman, which has aired in cinemas and on global TV.
2.