Tullow Oil has signed a Letter of Intent with the Forestry Commission of Ghana to progress its nature-based carbon offset opportunity beyond the initial project feasibility study.
The jurisdictional programme aims to generate between 600K and 1,200K tonnes per annum of verified emissions reductions over the project lifetime.
The Letter of Intent gives Tullow a 1-year exclusivity over the identified project area to reach the signing of an Emission Reduction Payment Agreement (ERPA) and in return will provide funding to the Forestry Commission of Ghana to undertake initial project development activities.
The signing of the Letter of Intent marks a key milestone for Tullow in the development of long-term supply of carbon offsets as part of its progress to reach net-zero (scope 1 and 2) by 2030.
The nature-based carbon offset programme will focus on the Western part of the transition zone in Ghana (Bono and Bono East regions) in line with Ghana’s REDD+ strategy.
Commenting on the Letter of Intent, Director for People and Sustainability at Tullow Oil, Ms. Julia Ross, said “Tullow’s partnership with the Forestry Commission of Ghana to pursue a nature-based carbon offset programme is beneficial to both parties and demonstrates our joint commitment to address climate change whilst supporting socio-economic opportunities for local communities.
The signing of the Letter of Intent is an important milestone that enables Tullow and the Forestry Commission to progress towards ERPA signing in 2023.”
The Chief Executive Officer of the Forestry Commission of Ghana, Mr. John M. Allotey said “This partnership with Tullow for activities in the transition zone of Ghana signals yet another significant REDD+ milestone for Ghana as we begin to develop interventions for the third ecological landscape program according to the 20-year REDD+ strategy launched in 2016.
The Commission is particularly enthusiastic about this engagement with Tullow as it demonstrates a proof of concept for a sustainable transition journey towards net-zero decarbonisation in the voluntary carbon market space, which also fosters community development and empowers livelihoods”.
Following the signing of the Letter of Intent, the Forestry Commission of Ghana will commence activities including initial community outreach and engagement, confirming drivers of deforestation, identifying suitable interventions, and developing a roadmap for social inclusion and project safeguards.
