The Rimba Raya Biodiversity Reserve REDD Project

In some contexts, for example where whole villages raise a claim,it may be more appropriateto adopt local practices for conflictresolution. Often this involves the gathering of communitymembers to sit down and discuss the issue in open where eachmember has an equal say in the discussion and can voice theirown issues. In this case, multiple members of a third-­‐partyintermediary organization could attend the meeting. In somesituations it may be appropriate for a representative from theproject proponent to attend. This has been a successful approachto resolving issues at a community community level.Other Stakeholder and Land Rights Conflict ResolutionsPreventative and procedural conflict resolution may also arisewith a neighboring oil palm estate or landholder. Preventativemeasures will be taken to reduce the incidence of conflictsarising in the first place. This may for example includeundertaking regular business-­‐to-­‐business consultative meetingswith the estate manager to maintain a healthy dialogue.Both the project proponent and proponent’s third-­‐partyintermediary will be present. For the purposes of conflictprevention, it is important that initial meetings focus on reachinga mutual understanding of the real-­‐world location of boundarylines. Estate owners should be notified that boundaries will beregularly monitored by the project proponent.In cases where disagreements and conflicts do arise, a third-­‐partyintermediary procedure adopted from the community processmay be necessary. For the purposes of clarifying boundary lines,land rights and other normative and legal issues,it may be moreappropriate to use a legal body for this process, rather than alocal NGO.G3.11. Project FinancingDemonstrate that financial mechanisms adopted, including projectedrevenues from emissions reductions and other sources, are likely toprovide an adequate flow of funds for project implementation and toachieve the anticipated climate, community and biodiversity benefits.To determine financial soundness, three distinct time periodsmust be considered:1. Project commencement through carbon credit verification2. Carbon credit verification through the end of project life3. Post-­‐projectProject commencement through carbon credit validationTo ensure that the Rimba Raya project is properly certified andthat adequate VERs are generated, capital requirements throughcarbon credit verification amount to roughly 2.5M USD.In addition to the 500K USD that management has invested in theprocess, IE is negotiating a binding contract with a large “bridgefinancier” that will provide 2M USD, using other contracts that IEhas in place as leverage.Carbon credit verification through the end of project lifeIE has executed a binding contract with a large European bank inan option premium structure for 2M VERs. The contract statesthat upon verification the EU bank will pay IE 2M USD (1 USD perVER) for the option to buy the 2M VERs for 4 USD per VER, or 8MUSD (total 10M USD).Revenues from this one initial contract will fund Rimba Rayaoperations for at least the first two years of project life.178