CARBON CREDITS: FROM ENVIRONMENT PRESERVATION TO OVERCOMING POVERTY
Launching of CARE Brasil Social Carbon Fund at the Conference of the Parties (COP12), Nairobi
CARE Brasil, in partnership with company CO2e., will launch CARE Brasil Social Carbon Fund in the Conference of the Parties, held in Nairobi, Kenya.
This is the first initiative combining Carbon Credits with benefits to the communities, with a view not only to mitigating climate changes, but also to contributing to overcoming poverty and strengthening social development. The projects will be developed in four major and strategic Brazilian biosystems: the Atlantic Forest, the Amazon Region, the Cerrado and the Caatinga, where CARE Brasil already operates in social programs to overcome poverty.
Unlike other funds, CARE Brasil Social Carbon Fund will focus on the environment and social component promoting environment preservation by issuing Carbon Credits and investing in the development of impoverished communities in the areas where the projects will be implemented. Another differential is the management to be totally conducted by an NGO, in this case CARE Brasil, in addition to being a fund that will invest in small scale projects focusing on the local development of the communities involved. The fund’s technical management will be developed by CO2e, one of the largest global companies operating in the climate change area. Throughout the last five years, CO2e established a globally recognized brand and incomparable expertise, accounting for several pioneering innovations. In addition, we have CARE’s history that gathers 60 years of actions around the world in social development and poverty alleviation.
The launching meets the requirements of the Kyoto Protocol signed in 1997. The document establishes the reduction of Carbon Dioxide (CO2) emission levels, accounting for 76% of total emissions relating to global warming, and other greenhouse gases in industrial countries. The signatory countries agreed to reduce emission levels of pollutants by 5.2% in relation to 1990 levels.
Global Climate Changes represent one of the major challenges for the human population. The growing emissions of Carbon Dioxide (CO2) and other gases such as Methane (CH4) and Nitrous Oxide (NO2) in the atmosphere have caused severe problems such as worsening of the Greenhouse Effect. Emissions of CO2, a gas that contributes the most to global warming, represent approximately 55% of total global emissions of Greenhouse gases, and the time for their permanence in the atmosphere is from 50 to 200 years. This means that the emissions of today will have long-term effects and may result in impacts on the climate regime throughout many centuries.
HOW THE FUND OPERATES
With operations based in Brazil, CARE Brasil Social Carbon Fund will invest in projects in Brazil in the context of the CDM (Clean Development Mechanisms), generating a return for their investors through ERC (Emission Reduction Credit) Certificates, negotiable credits under Kyoto Protocol mechanism and VCMs (voluntary carbon markets). The purpose is to implement projects that will actually contribute to reducing global climate changes, conserving biodiversity and sustainable development, working with ethically, socially and environmentally correct rules, based on the Social Carbon concept. The purpose of the Fund is to tap US$ 55 million with investments converted into CO2-equivalent tons, with a view to generating 5 million carbon credits. The minimum investment is US$ 50,000. During the effectiveness of the Fund, about 14 to 20 projects will be developed, where the Fund’s resources will be applied. Quota shares of Fundo CARE Brasil de Carbono Social are already available for sale. To acquire shares or for more information on them, please contact us at websites www.caresocialcarbon.com or email: cbsc@br.care.org
ABOUT SOCIAL CARBON
Social Carbon is an assessment and follow-up methodology to ensure the transfer of social and economic benefits to the communities of areas where those carbon sequestration and reduction projects are implemented. That concept emerged from the need to making sure that the projects developed to reduce or eliminate emissions of gases that destroy the ozone layer may significantly contribute to sustainable development, incorporating transparent methods of access and measurement for the benefits offered to the communities involved in the projects and ensuring that the environmental services provided by those communities are appropriately compensated. The Social Carbon methodology improves project effectiveness because it values local communities, their usages, traditions, production systems, being mainly concerned with the potentials of communities and taking into account the region’s power relations and political scene. The projects developed using the Social Carbon methodology are more reliable, stable and cost effective, because the investments made balance the development of social and economic aspects of the local environment therefore enabling a greater long-term return. The Social Carbon methodology is a Brazilian concept that emerged during the implementation of the first carbon sequestration project, developed by Instituto Ecológica in the surroundings of Ilha do Bananal in the State of Tocantins. Source: Instituto Ecológica.
THE PARTNERSHIP INVOLVED
CO2e
CO2e.com Ltda. (CO2e) is an environmental brokerage company, subsidiary of Cantor Fitzgerald and Mitsui. Throughout the last 5 years, CO2e established a globally recognized brand and incomparable expertise. The company is responsible for several pioneering actions, including the first on-line platform for GEE negotiation, the first ERCs in Europe, the world’s largest GEG – greenhouse effect gas deal, among others. CO2e was awarded the Environmental Finance prize in the last 3 years as “the best CDM/JI (joint implementation) broker”, in addition to several other industry awards. CO2e will be the technical responsible for Fundo CARE Brasil de Carbono Social. For more information, see www.socialcarbon.com and www.co2e.com.
CLIMATE CHANGES
Global Climate Changes (GCCs) represent one of the greatest challenges for mankind. In addition to being a global problem - as the name itself indicates, they involve several sectors of society, require awareness on the importance of the issue, and demand changes in many consumption habits and behavior.
The growing emissions of Carbon Dioxide (CO2) and other gases such as methane (CH4) and nitrous oxide (NO2) in the atmosphere has caused serious problems such as the greenhouse effect. Owing to the quantity of CO2 issued, it is the gas that contributes the most to global warming. Its emissions represent approximately 55% of total world emissions of greenhouse gases. The time for their permanence in the atmosphere is from 50 to 200 years. This means that the emissions of today will have long-term effects, and may result in impacts on the climate regime throughout many centuries.
Scientific evidences indicate that in the event CO2 concentration continues to grow, the average earth temperature will rise (from 1.4°C to 5.8°C by 2100), causing extreme climate effects (floods, storms, hurricanes and draughts), changes in the variability of hydrologic events (sea level rise, changes in the rain regime, flow of the sea into the rivers, scarcity of potable water) and placing life on earth at a risk (threat to biodiversity, agriculture, health, and well being of the human population).
Historically, industrial countries have been responsible for most greenhouse gas emissions. However, at present, several developing countries such as China, India and Brazil are also among the major gas emitting countries. However, on a per-capita basis, developing countries continue to have considerably lower emissions than industrial countries. Source: Brazilian Ministry of Foreign Relations.
ABOUT THE KYOTO PROTOCOL
The Kyoto Protocol was signed on the Sixth Conference of the Parties of the United Nations Convention on Climate Changes – COP6, held in Japan in 1997, after discussions starting in 1990. The conference gathered representatives of 166 countries to discuss measures relating to global warming.
The document establishes a reduction in the carbon dioxide (CO2) emissions that account for 76% of total emissions relating to global warming, and other greenhouse gases in industrial countries. The signatory nations agreed to reduce pollutant emissions by 5.2% in relation to 1990 levels. The reduction would occur in differentiated quotas of up to 8%, from 2008 to 2012, by the countries listed in Attachment 1 of the Protocol.
An important aspect of the protocol is that only the countries listed in the so-called Attachment 1 are required to reduce their emissions. Developing countries such as Brazil, China and India, large pollutant emitters, may reduce emissions voluntarily, but are not yet required to do so. The basic concept agreed under the Kyoto Protocol is that of ''common but differentiated responsibility'' – meaning that all countries have a responsibility to fight global warming, but those that have historically contributed the most to accumulate gases in the atmosphere have the greatest obligation to reduce emissions.
However, to become effective, the document has to be ratified by at least 55 countries. They must include those that together produced 55% of the carbon gas emitted in the atmosphere in 1990. Although the European Union has already announced its support to the Protocol, the United States – the major polluting country – has refused to sign it. The United States alone emits no less than 36% of the poisonous gases that create the greenhouse effect. In the last ten years only, gas emissions by the United States grew by 10% and - according to the Protocol - the country’s carbon gas emissions is expected to jump to 43% by 2020.
Major countries emitting carbon dioxide (CO2) in the atmosphere (percent of the world’s total emission)
United States 36.1%
Russia 17.4%
Japan 8.5%
Germany 7.4%
United Kingdom 4.3%
Canada 3.3%
Italy 3.1%
Poland 3.0%
France 2.7%
Australia 2.1%
Spain 1.9%
The Netherlands 1.2%
Check Republic 1.2%
Rumania 1.2%
Countries listed in Attachment 1: Germany, Australia, Austria, Belarus, Belgium, Bulgaria, Canada, European Community, Denmark, Spain, the United States, Estonia, Russian Federation, Finland, France, Greece, Hungary, Ireland, Iceland, Italy, Japan, Latvia , Lithuania, Luxemburg, Norway, New Zealand, the Netherlands, Poland, Portugal, United Kingdom of Great Britain and Northern Ireland, Check-Slovakia Republic, Rumania, Sweden, Switzerland, Turkey and Ukraine. Source: Brazilian Ministry of Foreign Relations.
MEASURES TO IMPLEMENT THE PROTOCOL
Gas emission reductions are expected to happen in several economic activities, mainly energy and transports. The countries must cooperate among themselves by the following basic actions:
- Remodeling the energy and transport sectors;
- Promoting the use of renewable energy sources;
- Eliminating financial and market mechanisms inadequate to the purposes of the Kyoto Convention;
- Reducing methane emissions in the management of waste and energy systems;
- Protecting forests and other carbon peat lands
Although the treaty does not require developing countries to make a commitment to reduce gas emissions, Brazil signed the agreement’s ratification letter on July 23, 2002. The country is responsible for an annual production of 250 million tons of carbon (10 times less than the US).
The countries that do not meet the reduction targets will lose their right to use flexibility mechanisms such as forests. In addition, in the second reduction period, they will have a 30% increase on the amount they failed to meet.
THE PRACTICAL IMPORTANCE OF CARBON SEQUESTRATION
Established in article 12 of the Kyoto Protocol, CDM is a measure to promote sustainable development in underdeveloped countries – the only flexibility mechanism providing for the participation of developing nations. The purpose is to encourage the production of clean energy, such as sun energy and energy generated from biomass, and to remove carbon from the atmosphere.
CDM enables developed countries to invest in projects (energy or forest projects) to reduce emissions and use credits to reduce their obligations: each ton not emitted or removed from the atmosphere may be acquired by the country with reduction targets to be met. Therefore, a global CER (Certified Emission Reduction) market is created.
INTERVIEWS AND MORE MEDIA INFORMATION
Priscila Valdes pvaldes@br.care.org 11 3226-0090
Flavia Lang flang@br.care.org 11 9126-2321 (in NAIROBI)
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