Germany has apparently agreed to fund a significant portion of Ecuador’s scheme to leave Amazon rainforest oil reserves in the ground, according to Business Green.
Business Green reports that Germany will provide Ecuador with $650 million over the next 13 years to fund a transition to a low carbon economy, while forgoing development of oil reserves in the Ishpingo-Tambococha-Tiputini (ITT) concession of Yasuni National Park. Ecuador would still need to raise another $310 million by 2011 however to make the project a reality. The government believes the total cost of protecting the area permanently would be $3.6 billion, or roughly half what the state would receive from auctioning off the reserve to drillers.
Other countries have voiced support for the concept, but none have contributed funds.
Germany hopes the scheme would generate CO2 credits in its domestic carbon trading system, provided the credits are recognized under a post-Kyoto climate agreement.
Business Green’s reporting is based on an article published in Point Carbon, a subscription-based publication.