The Government of New Ireland signed a Memorandum of Understanding on carbon trading with New Ireland Hardwood Timbers (NIHT) INC in Kavieng on October 20.
The agreement paves the way for NIHT INC to operate legally in the province of New Ireland and to ensure that all parties, including incorporated land groups, the provincial government and the Climate Change and Development Authority (CCDA) benefit from the net income from the sale of carbon credits.
NIHT CEO Stephen Strauss, during his presentation to the Provincial Executive Council, reaffirmed the company’s responsibility to meet the terms of the contract. âNIHT intends to issue carbon credits each year and sell those credits at the best possible price for all stakeholders and partners. “
However, he clarified that in the event that there are few carbon credits issued or sold, or if the price of carbon credits drops to a minimum level, the distribution will be adjusted accordingly. âThe sale and timing of sales will be based on market conditions and in rare cases the holding of credits for a cheaper deal will be determined by the NIHT. “
The Government of New Ireland will use its funds component to support its neighborhood grant programs. âThe topic of climate change has been raised at many global meetings including the recent United Nations Conference in New York and we now need to accept that our world is interconnected and continues to change and that we all need to take responsibility for our actions. We owe it to our future generations to ensure the health of our planet. We hope this MoU will pave the way for more sustainable and clean energy projects across New Ireland and Papua New Guinea, âsaid New Ireland Governor Sir Julius Chan.
The NIHT also officially opened its new office in Kavieng on October 21.
Carbon trading is a new concept for Papua New Guinea and New Ireland is a pioneer in green trading. A case study on Konoagil’s carbon trading experience will be presented by Minister of Environment, Conservation and Climate Change Wera Mori at the COP 26 of the United Nations Climate Change Conference organized by the United Kingdom in partnership with Italy, from October 31 to November 12. at the Scottish Event Campus (SEC) in Glasgow.
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