Revenues from Carbon Credits

Rainforests, aside from being home to almost half of all the animal and vegetable species in the world, are huge absorbers (Sequestering) of CO2 and other emissions and pollutions from our energy intensive lifestyles. They are in effect a critical environmental filter and massive producer of Oxygen.

Virgin Rainforest in general terms (subject to biomass and water table)
sequester (absorb) between 6 and 11 tonnes of CO2 per year per hectares (2.3 to 4.4 tonnes per acre).

These credits, which belong to the government or stakeholder, are
available in the market for sale at the predetermined price of the market for that day. Please contact CCF Carbon Desk for this price and availability.

The resulting Carbon revenues create a considerable capital pool the control of which is critical to ensure the programme meets its aims and goals. This is dealt with as below:

1 The Government or stakeholder receives 20% of the gross carbon
revenues. This serves to cover the cost of governmental or stake
holder administration as well as partial compensation for the
carbon credits generated through their forests.

2 CCF PLC as the programme administrators receives a volume of carbon credit revenue commensurate with the requirement to administer the auditing, sale and administration of the credits as well as for the protection of the forestry asset.

This is achieved in conjunction with local government departments in an agreed format. Clearly the goal here is to ensure the long term conservation of the forest and the indigenous peoples. It is important to understand that the majority of these funds are destined to be utilised in the country of origin of the forestry generated carbon credits.

3 An ‘in country’ Options and Choices Foundation receives a large element of the carbon revenues. This is a critical point as unlike other Carbon Credit projects, the long term commercial security of the
indigenous people and the rural communities is a core goal for CCF and the government or stakeholder. This creates a capital pool which is both renewed annually and utilised commercially to create additional revenues be they cash or carbon credits. These additional revenues are realised through the implementation of microfinance programs, sustainable lumber programmes and energy crop programmes including outreach and JV or owner plantations. This all works to generate financial and commercial impetus as well as reducing considerably the commodity pressure on the forests.

In theory, it is projected that after only five years, should the carbon
markets fail, the whole forest, lumber, energy crops and value chain can be financed and supported by these Option and Choices activities alone – indeed, Options and Choices will have provided options and opportunity resulting in these people being able to make their own life choices about how they want to live while bringing considerable value to local and national communities.