Offset8 Announces $50m Carbon Credit Project in Indonesia

Feb 27, 2024

Offset8 Capital Limited (“Offset8”), an Abu Dhabi Global Market-based proprietary asset management firm and a financial advisor authorised and regulated by the Financial Services Regulatory Authority of the ADGM, announces the signing of its first transaction to finance Sawa’s biochar carbon credit project (the “Project”) in Indonesia (the “Transaction”).

The Project is estimated to generate approximately US$50 million worth of carbon credits over the next 10 years. Offset8 has facilitated an early-stage investment in the Project and intends to support Sawa with Offset8’s expertise throughout the life of the Project.

The Project will be developed in multiple regions across Indonesia, starting with Majalengka Regency in West Java, and expanding across Java and into Sumatra. Historically, agricultural waste has been stored in piles and left to decay or has been burned, posing a fire hazard, contributing to respiratory health issues, and leading to methane production. 45 million tonnes of agricultural crop residues are burned every year in Indonesia, emitting on average 2 million tonnes of CO2 equivalent every year. Sawa will convert agricultural waste into biochar, which offers a sustainable and eco-friendly solution to the waste management problem, to generate biochar carbon credits.

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