the DCVA and provides species with an enlarged habitat. A large

number of the tree species in the project area are also critically

endangered, endangered, or vulnerable according to the IUCN Red

List. The project planting activities consist of a significant number of

these trees and therefore contribute to a healthy re-introduction. The

planting and liberation activities also include indigenous fruit trees,

increasing the biodiversity in the area by providing food sources for

wildlife. Research has shown that the rehabilitation project has resulted

in a relatively fast return of animal species to the area, particularly

birds; however, Orangutans, Sun bears, and Pygmy elephants are

also frequently spotted. Additionally, the conservation and project

areas are one of the last refuges for the Sumatran Rhino, a critically

endangered species.

The close proximity of the project to the Danum Valley Field Centre

allows for close collaboration with an extensive network of local and

international scientists. Studies conducted on fauna and flora diversity

in DCVA reveal that the area has a high density and diversity of species

in reference to other parts of Malaysian Borneo.

Sabah Rainforest Rehabilitation Project

The Sabah Rainforest Rehabilitation Project rehabilitates logged rainforest in the state of Sabah in Malaysian Borneo through Improved Forest Management (IFM) activities as well as avoiding a second round of logging. The project developer has been working on these activities since the early 1990s and so far has restored approximately 12,000 hectares (ha) of rainforest with a goal of rehabilitating a total of 25,000 ha.

Project Activities

In the absence of the project, the forest would be re-logged (which

has historically occurred in approximately 20 year intervals and is still

happening in some of the surrounding areas) and would only slowly

recuperate due to high quantities of vines and climbing bamboos

suppressing the remnant trees. The main project activity is enrichment

planting: the introduction of indigenous, Dipterocarp tree species

in the existing, but degraded, secondary forest. The enrichment

planting combines both “artificial” planting from saplings raised in

nurseries and “natural” management of existing forest, allowing for

the maintenance of a complex vegetation structure that retains the

forest character and associated biodiversity and ecological services.

The techniques have been refined through applied research and

experimentation and other project activities such as liberation and

climber cutting. The IFM activities have enhanced the growth of

the remaining forest ecosystem and ensured the survival of the

seedlings.

In areas substantially affected by conventional commercial logging,

the failure to apply some type of enrichment planting or IFM

techniques will likely cause regeneration of lower-value pioneer plant

species. It will also cause decreasing carbon sequestration while

increasing future risks of forest fire and agricultural conversion.

In order to operate the forest management activities, the project has

employed more than 50 people. There are no communities in the

direct project area so employees come from villages a little further

away. The project has set up a camp within the project area to house

many of these employees, which includes houses, a restaurant and

a shop.

Biodiversity Benefits

The project is situated in the Ulu Segama Forest Reserve and

directly adjacent to the Danum Valley Conservation Area (DCVA),

an undisturbed primary tropical rainforest that is legally defined as

a protected area.

Many animal species migrate between the conservation area and

the project area; therefore the project acts as an additional buffer to

www.carbonneutral.com

Some of the rainforest this project is helping protect.

The CarbonNeutral Company - a world-leading provider of carbon reduction solutions London T: +44 20 7833 6000 E: info@carbonneutral.com New York T: 1-646-367-5800 E: salesna@carbonneutral.com

Carbon Finance and Sustainable Forest Management

Malaysia, and particularly the island of Borneo, is considered to be

one of the most biodiverse areas in the world. The state of Sabah

makes up approximately 10% of the island and about 60% of that

land is forested. However, though by regional standards much of

Sabah is still forested, there remains relatively little undisturbed

lowland Dipterocarp forest, largely due to high timber value of the

species and strong export demand for the logs, but also due to a

large palm oil industry in the country. In recent decades, forests have

provided an important source of revenue for the state, contributing

in excess of 50% of its total revenue from the 1970s through to the

early 1990s. The state’s population has increased from 410,000 in

1960 to more than three million in 2005. This heavy reliance on

forests to contribute to the welfare and development of the area has

resulted in a large percentage of forest reserves being logged over

time and now under secondary forest.

Given that strictly protected, primary forested areas are limited,

a pragmatic approach to conserving biodiversity and increasing

carbon stocks is to sustainably manage these logged production

forests. Little economic incentive currently exists for this type of forest

management. With the help of carbon finance, conservation can

hopefully be achieved without significantly impacting the economy

compared to the business-as-usual “convention logging” scenarios

common to many tropical countries like Malaysia.

The CarbonNeutral Company - a world-leading provider of carbon reduction solutions London T: +44 20 7833 6000 E: info@carbonneutral.com New York T: 1-646-367-5800 E: salesna@carbonneutral.com www.carbonneutral.com

Validation and Verification

The carbon project is validated to the Verified Carbon Standard

(VCS) and the emission reductions from the first monitoring period,

2007 through 2010, have also been verified.

ANDAMAN SEA

SOUTH CHINA SEA

INDONESIA

INDONESIA

PHILLIPPINESVIETNAM

One of the Pygmy elephants, which are returning to the project area since the logging has stopped.