Reforestation of Degraded Areas in
Amazon Basin for Future Market Project

The «Amazon Reforestation» project aims to recuperate 1,000 ha of soils, degraded by effects of cattle rising, through a reforestation program using species with identified international market. Counting with the support of a trustee company, internationally known as Control Union World Group, and the FSC certificate, the plantation will be offered in future markets, specially oriented to long term investors as Retirement Funds.

The implementation of the project will constitute an important mechanism against desertification processes and the solution to the main obstacle to reforestation projects (the long term return of the investment) obtaining additionally the benefits of CDM.

Baseline Scenario

Which emissions are the proposed Clean Development Mechanism CDM project displacing?
As areas are degraded, this is a project oriented to mitigate climate change, capturing CO2 through reforestation, and also contributing to stop desertification processes.
What would the future look like without the proposed CDM project?
Without the project, the soils will continue its degradation processes until becoming a desert, eliminating the possibility of obtain economic incomes for local families, accelerating poverty and migration from rural areas to cities.
What would the estimated total greenhouse gas (GHG) reduction be with the project?
The project baseline will be probably a net emission of 0 tCO2eq because it is already completely deforested. If nothing is done, the complete degradation of the land will change it irreversibly into a desert.

The «Amazon Reforestation» project is intended to sequestrate near 2 millions of tCO2e by year 30.

Current Status

Earliest project start date
The project has started on August 2004
Estimate of time required before becoming operational
Carbon sequestration activities will start 1 year and 2 months after the beginning of the project activities.
What is the project lifetime?
The project aims to promote a rotation period of 30 years for the harvesting (and reforestation) of the trees.
Current status or phase of the project
• Land identification (property rights clearly defined) and site selection completed
• Pre feasibility study finished and available
• Contract Model Design completed
• Marketing activities in process

Estimated Emission Sequestrated

• Up to and including 2010: 65,067 tCO2e
• Up to a period of 20 years: 755,828 tCO2e
• Up to a period of 30 years: 1,893,526 tCO2e

Project Benefits

• Reforestation of 1,000 ha of degraded land, as a competitive activity versus cattle rising.
• Increase of exports of value added wood products, estimating that one hectare of managed forest will produce around 600.4 m3 of wood.
• Generation of employment for local population: around 350,000 days of work during all the project cycle of 30 years, improving life conditions for the population, who is mostly peasant and live in poverty conditions.
• Reduce migration process that affects the region.
• Capacity building related to work organization and business culture.
• The project will contribute financially and technically to replicate the experience by organized small peasants.

Project Participant and Financing

Total project cost estimate:
• Development costs: US$ 100,000
• Installation costs: US$ 15,800,000
• Total project costs: US$ 15,900,000

Sources of finance to be sought or already identified:
• Equity: Own funds
• Debt: Not required
• Carbon finance contribution sought: Around 33% of total expenses.

Contact Information: