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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

Costa Rica to Save Forest with Carbon Credits

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Forest Networking a Project of Ecological Enterprises

     http://forests.org/

 

4/25/98

OVERVIEW & COMMENTARY by EE

Costa Rica's cutting edge rainforest conservation rhetoric continues,

as the country moves to harness carbon credits to finance rainforest

conservation.  While acknowledging justifiable concerns regarding the

South forgoing development to subsidize continued Northern over-

consumption, in is inarguable that carbon swaps appear uniquely

capable of providing financing to pursue large scale rainforest

conservation.  Carbon swapping will address global warming while

changing the economics of tropical forests, tipping the scale towards

conservation rather than large-scale exploitation.  While ensuring

that a carbon trading system does not lock in place development

disparities, it is my opinion that any strategy that addresses two

major World concerns--global warming and deforestation--while

transferring much needed financial resources to developing countries,

needs to be rigorously pursued.

g.b.

 

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Title:    Costa Rica to save forest with carbon credits

Source:   Reuters

Status:   Copyright 1998

Date:     April 24, 1998

Byline:   Vicki Allen

 

WASHINGTON (Reuters) - Costa Rica launched a program Friday to save

more than 1.25 million acres of rainforest by selling companies

allowances to emit carbon gases.

 

Costa Rican President Jose Maria Figueres said the rainforest will be

protected by the first greenhouse gases trading project developed

under the guidelines of the global climate change agreement reached in

December in Kyoto, Japan.

 

"Costa Rica is proud to take the lead in an initiative that can save

forest land around the world," Figueres told a news conference in

Washington.

 

The project, which makes the rainforest's ability to absorb carbon

gases a quantifiable asset, could earn Costa Rica more than $20

million this year, and $300 million over the life of the project,

government officials said.

 

With that revenue, the government will be able to buy land in the

rainforest, most of which is privately-owned, they added.

 

"This program is a model for North-South cooperation to help meet the

world's environmental challenges," Figueres said.

 

The emissions credits would be sold to companies in industrialized

countries that produce heat-trapping carbon gases by burning fossil

fuels. Buying these credits would help industrialized countries meet

emissions reductions goals of the Kyoto agreement.

 

A Swiss company, Societe Generale de Surveillance Holding S.A. (SGS),

operating under the Kyoto agreement's procedures, verified the plan

would remove more than 1 million metric tons of carbon from the

atmosphere.

 

Costa Rica has established environmental bonds called Certified

Tradable Offsets, with each corresponding to one ton of carbon to be

absorbed by its trees. It sold some credits last year, but this will

be the first such project using criteria from the Kyoto protocol.

 

"Independent certification such as that provided by SGS created the

confidence necessary to make trade in greenhouse gas reductions a

reliable financial tool for industrialized countries to meet their

emission reduction commitments in a cost-effective manner," Figueres

said.

 

He and company representatives said this should help create a

marketplace for emissions credits that could be used to save forests

around the world as well as bring down costs of cutting carbon

emissions that are heating the atmosphere and changing the world's

climate.

 

"Creating a market for carbon offsets provides developing countries

additional financial resources from their tropical forests -- money

that can be earned without cutting down their trees," Elisabeth Salina

Amorini, SGS chairman, said at the news conference.  

 

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