Although the Conference of the Parties of the Convention on Climate Change has not yet approved plantations and forests as carbon "offsets", the carbon shop is already very active. What follows is an e-mail message advertising Brazil as a place where cheap land and cheap labour is available for energy utilities to dump their carbon emissions:
"From: OMNITRADE aaa@yawl.com.br
Sent: Friday, July 14, 2000 2:25 AM
Subject: Greenhouse gas emissions - An alternative
Our company is located in Brasilia, capital city of the Republic of Brazil since 1978. Deals in the real estate business, acting as intermediary in rural properties as well as urban areas. Since the "Kyoto Protocol" in 1997, signed by many developed countries, there is an agreement that in the near feature there will be a reduction of pollutants to minimize the "greenhouse effect".
One of the options under consideration is the trade of emission credits with other nations. This may involve the reforestation of large areas or the deals involving existing forest like the negotiation that took place between electric utility industries and the Government of Costa Rica.
We understand that if the developed countries proceed with the negotiations in COP - 6 in Hague next November and they approve the set of international standards needed of how compliance issues will be resolved and what role of carbon sequestration activities (land use, land use change and forestry) in the Protocol, the demand for credits will surge.
We are able to submit competitive offers to energy utilities for reforesting projects (land at low prices, cheap labor and reasonably priced fertilizers).
We realize that the first option of the energy sector will be to invest in its own country or neighbors, but the alternative options in Brazil should be kept in mind as it could provide great savings compared to similar investments in other places.
Aside the sale of land and native forests, we can offer the option for lease or can act as intermediary on joint ventures for reforestation. The lease has the added advantage that is an excellent option for the cash flow of the company with the reforestation providing the necessary credits now and years later the benefit of the wood supply.
However, we have listed some properties of interest as well some information about environmental issues. It is to your advantage to take a look at them as you may find business opportunities of interest. If you need further information, have recommendations or suggestions.
Thank you in advance for your kind attention and hopping in the near future to do business to our mutual benefit, we remain.
