Deal #3738 Version #94969

Initially 4,200 but extended with 2,500ha. Further expansion in Sud-Kwamouth territory planned.

Ibi Bateke tree planting project promised to use loans and up-front carbon payments to plant acacia, eucalyptus and pine trees on ca. 4,000 hectares of savannah and restore 230 hectares as “ecological area” through planting of native tree species. (2) After 5 to 7 years, the plantation trees would be cut and turned into charcoal to be sold on the lucrative charcoal market in the country’s capital Kinshasa. In the early years, before the tree canopy closes, revenue was also to be generated from the sale of cassava planted beneath the acacia plantation trees.

The DRC registered the Ibi Batéké Carbon Sink Plantation Project as its first CDM (Clean Development Mechanism) project in 2011. The project claimed to store 54,511 tonnes of CO2 annually, creating 2.4 million carbon credits over 30 years, allowing investors to offset their emissions by financing the project. Income from carbon credit sales was partly promised for community projects, such as education funding, as highlighted by a 2011 World Bank press release (see: https://www.worldbank.org/en/news/press-release/2011/03/08/congo-community-to-use-carbon-payments-to-put-kids-through-school). Initial funding came from the World Bank's BioCarbon Fund, French company Orbeo, UNEP, UMICORE, and Suez, with loans and pre-payments for carbon credits totaling over $1.5 million. Despite funding, by May 2013, only 1012 hectares had been planted, and the project had not issued any carbon credits by 2016, with financial struggles despite initial loans and pre-payments. Reports differ on the expected contribution of carbon credit sales to the project’s income, with some attributing as little as 1% to carbon credits and up to 68% to cassava sales.

Olivier Mushiete is said to have titled 8,000 hectares of the land under his name and registered it as a concession (contrat d’emphyteose). The land rented to Novacel for the Ibi Bateke carbon tree planting project is a portion of these 8,000 hectares of land O. Mushiete turned into privately-held land.

The company generates income from cassava production.