BP, advised by Deacons and Norton Rose have entered into a contract with Carbon Conscious Limited, advised by Baker & McKenzie, for a large scale bio sequestration project, valued at $2.5 million.
The project involves the planting of up to 10 million trees to absorb carbon from the atmosphere, as well as alleviating land salinity and erosion problems.
BP has engaged Carbon Conscious to begin planting in 2010. Following the initial $2.5 million investment by BP, the two companies will share in the value of the carbon offsets produced over a 15 year period.
Carbon sink forests offer the only current domestic option for large emitters to offset their carbon emissions, other than through the Federal Government's auction system.
A similar carbon forest sink contract between Carbon Conscious and Origin Energy is anticipated to reach a value of $169 million if fully exercised.
The Deacons team was led by Melbourne partner Elisa de Wit, with partners David Porter (Melbourne) and Fadi Khoury (Sydney) and senior associates Lee Pascoe (Melbourne) and Jehann Mendis (Perth).
Support was also provided by Norton Rose partner Alex Cull and senior associate Hannah Logan (Singapore) and partners Anthony Hobley and Andrew Hedges (London).
The Baker & McKenzie team involved senior associate Ilona Millar and partners Martijn Wilder and Howard Fraser.
This is a significant deal as businesses prepare for the introduction of climate-change laws and a precursor of things to come. It's also a tangible demonstration of what Deacons Australia and Norton Rose can achieve together," commented de Wit.