CONSERVATION RESERVE PROGRAM & LINK TO GLOBAL BIOFUELS MARKETS
Conservation Reserve Program
Economic Basis for the "Amazon Permanent Fund" Program
Conservation Reserve Program
Economic Basis for the "Amazon Permanent Fund" Program
One key objective of the project is to use the interest in environmental preservation and carbon benefits from biofuels use and further augment carbon values of the fuel by taking a leadership role in preservation of the Amazon. Sustainable BioBrazil is suggesting a program to the Brazilian Government that will result in a roundtable discussion and the potential that it is incorporated in a national biofuels sustainability platform. As a part of this process, it is suggesting the following program in connection with stopping deforestation:
Conservation Reserve Program
1) Assess the Total Carbon and Genetic Value of Stopping Deforestation Completely
2) Develop a Program for the Preservation and Protection of the Entire Amazon Basis that includes "zero cut", only rail access beyond roads already built,
permits for any trucks, satellite surveillance, etc.
3) Undergo a Review Process for this Program to Make Sure it Meets Carbon Trading Criteria
4) Sell all of the Rights to the Sequestered Carbon in the Amazon through a Global Bidding Process
5) Target the sale of carbon credits to the airline and shipping sectors who are now outside Kyoto process
6) Sell a portion of the rights to extract genetic materials for drugs or other goods from biodiversity
7) Put the Proceeds from the sale of carbon credits and biodiversity genes into a "Carbon Permanent Fund"
8) Use a small portion of total proceeds to buy out all logging and ranching companies wanting to get out
9) Require all other companies to follow "zero cut" and "no burn" policies on land not already cut
10) Buy land that is degraded and plant native oil seed trees and regenerate soil
11) Assist cattle ranchers to undergo intensive management of cattle on existing ranch land
12) Provide assistance to conversion of other livestock with lower meal requirements (ostrich)
13) Take the principal of the remaining funds and put them in a "permanent carbon mitigation fund"
14) Have the funds managed by professional fund managers to optimize gain and minimize risk
15) Take ½ of the earnings and distribute them to the residents in the Amazon as a mitigation measure
16) Take ¼ of the earnings and use them for sustainable development projects in the Amazon (oil seed tree planting, soils rebuilding on perimeter, small scale
agriculture in small Amazon towns, mitigation from negative effects of climate change on Amazon, other projects)
17) Take ¼ of the earnings and distribute it to the Brazilian Government for other programs
MODEL for this program is the Alaska Permanent Fund Program. It has been extremely successful!
Economic Basis for the "Amazon Permanent Fund" Program:
There are approximately 400 million hectares of land in the Amazon. The estimated carbon sink value of rainforests is about 300 tons per hectare. This means a total of 120 billion tons of carbon. If we estimate a $10 per ton value for the carbon on the market, this means the net revenue from the sale of carbon rights in the Amazon is $1.2 trillion. Assume you spend a maximum of $200 billion on all other programs. This leaves $1 trillion to manage in an income earning fund. If you earn 10% from this fund management, you have $100 billion in earnings. If you give away 50% of the annual "Amazon Permanent Fund" earnings to the 20 million people living in the Amazon they each earn $5,000 per year. If you use the remaining 50% for the government or for Amazon programs you have $50 billion a year for Amazon sustainable development and environmental protection and $50 billion for other government programs.
Conservation Reserve Program
1) Assess the Total Carbon and Genetic Value of Stopping Deforestation Completely
2) Develop a Program for the Preservation and Protection of the Entire Amazon Basis that includes "zero cut", only rail access beyond roads already built,
permits for any trucks, satellite surveillance, etc.
3) Undergo a Review Process for this Program to Make Sure it Meets Carbon Trading Criteria
4) Sell all of the Rights to the Sequestered Carbon in the Amazon through a Global Bidding Process
5) Target the sale of carbon credits to the airline and shipping sectors who are now outside Kyoto process
6) Sell a portion of the rights to extract genetic materials for drugs or other goods from biodiversity
7) Put the Proceeds from the sale of carbon credits and biodiversity genes into a "Carbon Permanent Fund"
8) Use a small portion of total proceeds to buy out all logging and ranching companies wanting to get out
9) Require all other companies to follow "zero cut" and "no burn" policies on land not already cut
10) Buy land that is degraded and plant native oil seed trees and regenerate soil
11) Assist cattle ranchers to undergo intensive management of cattle on existing ranch land
12) Provide assistance to conversion of other livestock with lower meal requirements (ostrich)
13) Take the principal of the remaining funds and put them in a "permanent carbon mitigation fund"
14) Have the funds managed by professional fund managers to optimize gain and minimize risk
15) Take ½ of the earnings and distribute them to the residents in the Amazon as a mitigation measure
16) Take ¼ of the earnings and use them for sustainable development projects in the Amazon (oil seed tree planting, soils rebuilding on perimeter, small scale
agriculture in small Amazon towns, mitigation from negative effects of climate change on Amazon, other projects)
17) Take ¼ of the earnings and distribute it to the Brazilian Government for other programs
MODEL for this program is the Alaska Permanent Fund Program. It has been extremely successful!
Economic Basis for the "Amazon Permanent Fund" Program:
There are approximately 400 million hectares of land in the Amazon. The estimated carbon sink value of rainforests is about 300 tons per hectare. This means a total of 120 billion tons of carbon. If we estimate a $10 per ton value for the carbon on the market, this means the net revenue from the sale of carbon rights in the Amazon is $1.2 trillion. Assume you spend a maximum of $200 billion on all other programs. This leaves $1 trillion to manage in an income earning fund. If you earn 10% from this fund management, you have $100 billion in earnings. If you give away 50% of the annual "Amazon Permanent Fund" earnings to the 20 million people living in the Amazon they each earn $5,000 per year. If you use the remaining 50% for the government or for Amazon programs you have $50 billion a year for Amazon sustainable development and environmental protection and $50 billion for other government programs.
