The Rimba Raya Biodiversity Reserve REDD Project

economic programs designed to address poverty issues at theroot of this threat. These programs, described in Section G3.2,will create a social buffer and reduce this threat to projectbenefits.G5.6. Title to Carbon RightsDemonstrate that the project proponents have clear, uncontested titleto the carbon rights, or provide legal documentation demonstratingthat the project is undertaken on behalf of the carbon owners with theirfull consent. Where local or national conditions preclude clear title tothe carbon rights at the time of validation against the Standards, theproject proponents must provide evidence that their ownership ofcarbon rights is likely to be established before they enter into anytransactions concerning the project’s carbon assets.To date, project proponents have complied with all necessaryadministrative steps towards acquiring an IUPHHK-­‐RE for theProject Area. See Annex 19.The foregoing indicates that project proponents have taken allreasonable steps to obtain clear, uncontested title to the RimbaRaya project carbon rights. Ownership of carbon rights will beestablished conclusively before any transactions concerning theproject’s carbon assets are finalized.In a formal legal opinion dated 10 February 2009 (see Annex 19for the full opinion), based on a review of relevant governmentregulations and project documentation and on discussions withthe appropriate governmental authorities, legal counsel for theproject proponents stated the following:In order to engage in carbon trading activities, a companymust first obtain an IUPJL (Business License to UtilizeEnvironmental Service). However, the Minister of Forestryhas yet to issue any Environmental Service licenses becauseno implementing regulations have been promulgated.As a result, the DOF advises that in the absence of the IUPJLimplementing regulations, business actors intending toengage in carbon trading activity in a Production Forest mustfirst apply for an IUPHHK-­‐RE, to be followed by an applicationfor IUPJL once the implementing regulations have beenissued.207