Ostrom Climate Exits Existing UPRIIS ERPA Arrangements

Executive Summary

• Ostrom Climate Solutions Inc. has entered into a mutual settlement and termination agreement to exit the Emission Reduction Purchase Agreement (ERPA) for its Climate‑Smart Agriculture project in Upper Pampanga, Philippines, effective December 8 2025.
• The termination reflects a strategic shift toward compliance‑oriented carbon markets, positioning the UPRIIS project for future development under a compliance‑driven structure rather than the prior voluntary‑market design.
• No financial terms of the settlement were disclosed due to confidentiality obligations; Ostrom will provide further updates as the project’s development plan progresses.

Key Details

• Agreement Terminated: Emission Reduction Purchase Agreement (ERPA) originally executed on April 17 2024 for the UPRIIS carbon‑reduction project.
• Effective Date of Termination: December 8 2025.
• Settlement Terms: Confidential; no monetary or other specifics disclosed.
• Strategic Rationale:
• Refocus on compliance‑oriented carbon markets (e.g., Japan’s Joint Crediting Mechanism).
• Anticipated stronger long‑term commercial and financing opportunities in regulated markets.
• Plan to reposition UPRIIS via a phased, compliance‑driven structure.
• Management Commentary: Navdeep Dhaliwal, Chairman & CEO, emphasized the shift toward high‑integrity, compliance‑focused carbon markets and indicated that exiting the ERPA aligns the project with this new strategy while retaining its promise as a rice methane‑reduction initiative.
• Future Outlook: Ostrom will issue further updates on UPRIIS development as plans advance.

Notable Quotes

“Ostrom's new strategy is focused on high-integrity, compliance‑focused carbon markets,” said Navdeep Dhaliwal, Chairman & CEO of Ostrom. “Exiting the prior ERPA allows us to realign the UPRIIS project under this strategy and pursue pathways that we believe offer stronger long‑term value for our shareholders.”