DGB Group N.V. (“DGB”, “the Group”, or “the Company”) (Euronext: DGB: NL000916951), a leading developer of carbon projects and ecosystem restoration initiatives, in collaboration with project partners Climate Investment Partners and Akili Group, successfully received certification and registration from Verra’s Verified Carbon Standard (VCS) for its Hongera Reforestation Project in Kenya, Project ID 3321 (“the Project”). By completing the validation phase, the project is eligible to claim its verified carbon units over its lifetime.
Key highlights
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Project scope: The Project entered its internal development phase in March 2022 and was launched in the Mt Kenya and Aberdares regions of Kenya. This large-scale, nature-based solutions initiative features extensive reforestation efforts, using an agroforestry system with indigenous trees to restore critical catchment areas impacted by deforestation and land degradation. By partnering with local farmers and providing employment, training, and resources like seedlings, the Project strengthens the regional economy and empowers local communities to protect the reforested areas.
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Expected units: The Project aims to plant over 6 million trees across 10,800 hectares, capturing a total of 5.1 million tonnes of CO₂ over the entire Project lifetime, producing an average of 125,000 high-quality Afforestation/Reforestation (AR) carbon units annually.
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Unit sales: On 20 October 2024, DGB signed a purchase agreement with the Green Carbon Fund, securing €2.5 million for the sale of 125,000 carbon units from the Project over five years (2030–2034). The agreement includes an upfront payment of €1.25 million. After this transaction, DGB will retain 80% of the Project’s anticipated carbon units from this period, which are available for sale.
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Valuation and risk: As of 30 June 2024, the total value of the project pipeline reached €29.55 million (+24.8% YoY growth). The Group's total asset value rose to €34.93 million (+19.7% YoY growth), bringing DGB’s net asset value (NAV or ‘book value’) per share to €2.31. The successful validation of the project lowers its risk parameters, raising the project’s estimated total asset value—adjusted for risk—from €4.8 million to €6.8 million, increasing the asset value per share by €0.18.
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Timeline and prospects: The Project is dedicated to scaling its impact through maximised tree-planting efforts, aiming to reforest as much of the designated area as possible in the coming years. The first issuance of verified carbon units is projected for 2027, encompassing all vintages accrued since the Project's initiation.
Project issuance profile
Since initiating its first project in 2020, DGB has expanded to oversee a portfolio of large-scale projects under management and in operation. Given the two to six-year design, development, and financing period required before projects begin generating carbon units, DGB is now entering the revenue-generating phase, with initial carbon units from its own pipeline expected to be issued by Q4 2024. For further details on our active projects and development pipeline, please refer to our Projects page and Pipeline page.
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Contact for press enquiries
For more information about DGB's initiatives, please contact:
DGB GROUP NV
press@green.earth
+31320788118
Visit our website: https://www.green.earth/
About DGB Group
DGB is a publicly traded project developer focused on high-quality carbon and biodiversity projects. DGB is listed on the main Dutch stock exchange, Euronext Amsterdam, under the ticker symbol AEX and ISIN-code NL0009169515. The company specialises in ecosystem restoration and sustainability, developing projects that generate verified carbon units to help governments and businesses achieve their net-zero goals. Through innovation and engagement with local communities, DGB aims to make nature restoration profitable while contributing to global environmental sustainability and delivering value to its shareholders. www.green.earth.
About Climate Investment Partners
Climate Investment Partners brings more than 50 years of combined experience developing carbon projects for the voluntary market and is a B Corporation committed to high standards of social and environmental accountability. Climate Investment Partners’ team has led 22 forest carbon projects through validation, verification, and registration, and has supported 50 ecosystem services projects around the world resulting in over 25 million emission reduction and removals credits to date. To learn more, visit www.climateinvestmentpartners.com.
Disclaimer
This press release does not contain an (invitation to make an) offer to buy or sell or otherwise acquire or subscribe to shares in DGB and is not an advice or recommendation to take or refrain from taking any action. This press release contains statements that could be construed as forward-looking statements, including about the financial position of DGB, the results it achieved and the business(es) it runs. Forward-looking statements are all statements that do not relate to historical facts. These statements are based on information currently available and forecasts and estimates made by DGB’s management. Although DGB believes that these statements are based on reasonable assumptions, it cannot guarantee that the ultimate results will not differ materially from those statements that could be construed as forward-looking statements. Factors that may lead to or contribute to differences in current expectations include, but are not limited to: developments in legislation, technology, tax, regulation, stock market price fluctuations, legal proceedings, regulatory investigations, competitive relationships and general economic conditions. These and other factors, risks and uncertainties that may affect any forward-looking statement or the actual results of DGB are discussed in the annual report. The forward-looking statements in this document speak only as of the date of this document. Subject to any legal obligation, DGB assumes no obligation or responsibility to update the forward-looking statements contained in this document, whether related to new information, future events or otherwise. The provision of DGB’s services and products is subject to its General Terms and Conditions.
