Reforest’Action / Sumba: Investing in a Carbon Project with Socio-Economic and Environmental Impact
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Sumba: Investing in a Carbon Project with Socio-Economic and Environmental Impact

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On the island of Sumba in Indonesia, the landscapes still bear the marks of long-standing deforestation. Starting in the late 19th century, under Dutch colonial rule, local forests rich in sandalwood were heavily exploited and converted into farmland. Deforestation—occurring within a hilly landscape subject to a climate prone to droughts and extreme rainfall—led to erosion and soil degradation. Today, the island is composed of vast stretches of limestone savannas cut through by deep ravines, where sparse vegetation, mainly grasses, serves as pasture for cattle and horse herds. The project led by Reforest’Action in Sumba aims to reverse this ecosystem degradation. Currently undergoing certification by the international Verra (VCS) standard via methodology VM0047, the project seeks to combine carbon sequestration, food security, and the creation of sustainable value chains.

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A Project Design Tailored to the Environmental and Social Context

Restoring Degraded Lands and Agricultural Productivity

Developed by Reforest’Action in partnership with CIFOR-ICRAF (Center for International Forestry Research and World Agroforestry) and two Indonesian NGOs, the project addresses two main challenges: on the one hand, restoring soil fertility on Sumba through the creation of forests on previously deforested land and the development of diversified agroforestry systems; and on the other hand, strengthening the food and economic security of local communities, currently weakened by declining agricultural productivity.

To achieve this, an integrated landscape management model will be deployed to enhance ecosystem sustainability and resilience through adaptive, inclusive, and integrative strategies. By combining 37 tree species—including 20 native species—and five planting models adapted to the environmental and social context of the villages, the project aims to sequester 6.4 million tonnes of CO₂ equivalent over 40 years while restoring key ecosystem functions such as water retention, erosion control, soil enrichment, and biodiversity preservation.

A Project Design Serving Ecological and Economic Resilience

Within the project design, each model contributes to a balance between environmental restoration and economic value creation.

The project aims to:

  • recreate productive forests, notably composed of timber species and sandalwood, on degraded lands far from inhabited areas, to enable sustainable long-term timber production;
  • restore natural secondary forests on community lands to strengthen ecosystem services without timber exploitation.

The design also includes three agroforestry system models:

  • integration of fruit and forest trees in multi-strata systems near villages, enhancing food production and short-term economic resilience;
  • planting coffee fields under the shade of diverse trees to improve yields and quality thanks to vegetation cover that regulates temperature and humidity;
  • development of alley-cropping systems that enrich conventionally cultivated fields by combining fruit and forest trees with annual crops.

While generating certified carbon credits, the project therefore supports local economic stability as well as measurable ecosystem and social impacts.

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A Holistic Strategy Serving Ecological and Economic Resilience

Embedding Sandalwood into a Sustainable Value Chain

Sandalwood (Santalum album) is an emblematic Indonesian species historically at the heart of Sumba’s economy. Overexploitation of this precious wood during the colonial period (from the late 19th century until Indonesia’s independence in 1945) drastically reduced natural populations, making sandalwood a species now classified as vulnerable by the IUCN.

The project aims to reintroduce sandalwood sustainably into local agricultural and forestry systems. This species is hemiparasitic—unable to absorb soil nutrients on its own—and requires a host plant to grow, which justifies its integration into mixed agroforestry systems.

Its reintroduction will help rebuild an exportable economic resource while ensuring its sustainable management through a plan regulating harvesting practices. Because heartwood, which contains the essential oil, forms only after 10 to 15 years of growth, optimal harvesting occurs from year 20 onward. A local governance mechanism will therefore be established to plan these cycles fairly, ensuring ecological sustainability of the resource and economic stability for beneficiary communities. As a native species, sandalwood will also help restore local biodiversity.

Promoting Community Empowerment and Governance

The project’s success relies on the direct involvement of local communities in every phase—from preparation to planting activities, maintenance, and plot management.

The local team, already active in 25 partner villages, supports farmer groups in a collective implementation approach: each group, made up of around 30 households, works in a coordinated manner on the plots, supported by village facilitators who ensure compliance with technical protocols.

Community nurseries supply the project with seedlings, while a training program aims to strengthen the technical and organizational capacities of farmers involved in the project (nursery management, soil fertilization techniques, pest control, water management, tree pruning, financial management, participatory governance…).

A community forest management plan is developed jointly with local authorities, ensuring long-term ownership of the project.

Benefits from the sale of carbon credits will also be partially redistributed to cooperatives, farmer groups, and women’s associations under an equitable and transparent governance model.

Developing Local and Sustainable Value Chains

The project includes an economic strategy to develop local value chains around products with high potential: sandalwood, cashew nuts, coffee, candlenuts, teak, and mahogany. Designed according to the principles of the circular bioeconomy, these sectors aim to create stable market opportunities and additional income for producers, while promoting local processing and commercialization of commodities and building community expertise.

This model supports inclusive growth and lays the groundwork for progressive economic independence for communities. Income diversification will strengthen household resilience and reduce reliance on subsistence crops. Women, in particular, will benefit from improved access to these opportunities through the development of small local businesses and women’s cooperatives.

Embedding Gender Equality in Project Governance

Gender equality is a central pillar of the Sumba project. The project is designed for women—both in its conception, by intentionally involving them in consultations and contracts, and in its implementation, by taking into account their specific constraints.

Targeted training programs aim to strengthen women’s entrepreneurial, financial, and organizational skills. These programs will also emphasize leadership and public speaking to ensure that women’s contributions are fully recognized by the community. The project will engage male leaders to ensure broad community support while respecting traditional structures.

An inclusive recruitment policy further guarantees women’s participation in decision-making roles, especially within village committees and project governance structures.

By fostering women’s leadership, the project strengthens social sustainability within local governance while enhancing the economic performance of agricultural operations.

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Designed to meet the high-integrity requirements of international carbon certification standards, particularly Verra (VCS), the Sumba project represents a high-impact investment opportunity for funders. It guarantees traceability and independent verification of emission reductions, additionality and permanence of sequestration activities, and alignment with ESG principles and Sustainable Development Goals (SDGs 1, 4, 5, 8, 12, 13, and 15).

Over a 40-year period, it will enable the sequestration of 321 tonnes of CO₂ equivalent per hectare, totaling 6.4 million tonnes of CO₂ equivalent. Beyond its climate impact, the project will help restore natural ecosystems and island biodiversity, improve food security and rural incomes, and strengthen local capacities in sustainable natural resource management.

The Sumba project thus illustrates the ability of high-integrity carbon projects to generate multiple co-benefits beyond carbon sequestration. For investors, it represents an opportunity to engage in a measurable, verifiable approach aligned with international ESG standards. By supporting the project, financial partners contribute to ecosystem restoration, preservation of an emblematic tree species, and the construction of a resilient and inclusive rural economy. Interested in seizing this impact investment opportunity? Contact us to discuss your needs!