Carbon Streaming Corporation provided an update on the Rimba Raya project in Indonesia. On December 28, 2022, Carbon Streaming's partner and Rimba Raya project operator InfiniteEARTH Ltd. issued a release announcing the validation of Rimba Raya under the new Indonesian carbon regulation, Regulation No. 21 of 2022 (“Reg 21”) and with the carbon registry, Sistem Registri Nasional Pengendalian Perubahan Iklim (“SRN”).

Under Reg 21, all carbon projects in Indonesia must be registered, validated and verified on the SRN carbon registry. Highlights are: Rimba Raya is the first REDD+ carbon project validated under Reg 21, which establishes a framework for domestic and international carbon trading in Indonesia; Validation of the Project was limited to an area comprising 36,331 hectares (“ha”) under a concession agreement with the Ministry of Environment & Forestry (“MOEF”). Additional sections of land are planned to be validated separately; Under SRN program regulations, emission reductions for the initial portion of the Rimba Raya project area under this first validation now extend until 2073 and are expected to average approximately 2.7 million tonnes of carbon dioxide equivalent (“CO2e”) per year according to the validation report; Verification of the Project is scheduled to begin in January 2023 and will cover a period from July 1, 2019 to December 31, 2022, for an expected total of approximately 9.8 million carbon credits before any buffer deductions, including requirements for the Nationally Determined Contribution (“NDC”) buffers and domestic market use pursuant to Reg 21; The validation was independently audited by PT Mutuagung Lestari, an Indonesian testing, inspection and certification company; and The methodology used for the SRN validation of the Project is adapted from the BioCarbon Fund Initiative for Sustainable Landscapes (“ISFL”) Emission Reduction (“ER”) Program Requirements Version 2.0_2021.

The methodology used for the SRN validation of the Project is adapted from the BioCarbon Fund ISFL ER Program Requirements Version 2.0_2021. The ISFL is a multilateral facility, supported by donor governments and managed by the World Bank, that promotes and rewards reduced greenhouse gas (“GHG”) emissions and increased sequestration through better land management, including Reduced Emissions from Deforestation and Forest Degradation (REDD+), sustainable agriculture, as well as smarter land use planning and policies. Indonesia is one of the countries supported by the ISFL.

Once the Project is verified, Rimba Raya carbon credits are expected to be issued and tracked by the SRN.