Merrill Lynch announces carbon credits-for-forest conservation partnership
December 6, 2007
Wall Street Giant Announces New Market-Based Approach To Environmental Challenges
"At COP-13 we fully expect government negotiators to agree that market mechanisms are essential to provide incentives for avoided deforestation that can cost-effectively tackle 20% of the global greenhouse gas emissions problem. It is critical for such mechanisms to be included in the successor agreement to the Kyoto Protocol," said Abyd Kamali, Managing Director and Global Head of Carbon Emissions at Merrill Lynch. "We are pleased to be working alongside a leader in the sector such as Carbon Conservation, and impressed with their proven land use and forestry sector expertise in pivotal countries such as Australia and Indonesia. We look forward to exploring potential opportunities with Carbon Conservation where we hope to derive synergy from Merrill Lynch's strength in the carbon markets, our interest in developing innovative market-based approaches to environmental challenges, and our overarching commitment to sustainability."
"We really are at a tipping point at the UNFCCC meeting at COP 13 in Bali" said David Pearse, Director of Strategy for Land Use, Land Use Change and Forestry at Carbon Conservation. "Nowhere else is it more evident than in land use and forestry that the pursuit of short term profit is unsustainable both financially and in terms of climate change"
"The scale of the opportunity is once in a lifetime," added said Carbon Conservation CEO Dorjee Sun. "The need to develop poverty-alleviating jobs alongside the preservation of biodiverse standing forests containing watersheds, carbon and endangered species is critically important and recognized by the Green leadership of the Governors of Aceh, Papua and Papua Barat. Now to have a strategic alliance with an innovative Wall Street powerhouse like Merrill Lynch is fantastic."
Can wildlife conservation banking generate investment returns?. A commercial venture in the Malaysian rainforest will seek to generate competitive returns on investment by protecting wildlife. The scheme -- signed by the Sabah government and Sydney-based New Forests Pty Ltd -- will establish a wildlife habitat conservation bank to manage the 34,000 ha Malua Forest Reserve on the island of Borneo.
How private equity can profit from carbon offsets in Indonesia. The emerging carbon market for avoided deforestation presents unprecedented opportunities for private equity to make profitable investments that also help protect the environment. Indeed, for the first time, conservation may be associated with positive financial returns. Here's a brief look at how private equity and other investors can capitalize on this opportunity to earn attractive returns while fighting climate change, protecting ecosystem services, and safeguarding endangered species like orangutans.
Indonesia's peatlands may offer U.S. firms global warming offsets. The following is modified version of a letter I've used to pitch U.S. companies on the concept of carbon finance in Indonesia's peatlands. Discussions are slow and the critical December U.N. climate meeting is fast approaching, so I'm posting this as a tool to help you get American firms interested in avoided deforestation offsets. Please feel free to use, modify, and distribute this letter widely.
Carbon offset returns beat forest conversion for agriculture in Indonesia. Conversion of forests and peatlands for agriculture in Indonesia has generated little economic benefit while releasing substantial amounts of greenhouse gases into the atmosphere, reports a new study from the the World Agroforestry Centre (ICRAF), the Center for International Forestry Research (CIFOR) and their Indonesian partners.