World Bank to buy $63 mln in Costa Rican forest carbon credits

[Judi Lynn]

World Bank to buy $63 mln in Costa Rican forest carbon credits
Source: Reuters Point Carbon - Wed, 11 Sep 2013 04:30 AM
Author: Marcelo Teixeira

SAO PAULO, Sept 10 (Reuters Point Carbon) – The World Bank’s Carbon Fund signed a deal on Tuesday with the government of Costa Rica to buy up to $63 million worth of forest-based carbon credits, the bank said.

The agreement will allow the Central American country to expand a local program that pays landowners for conserving forests to an additional area of 340,000 hectares.

The final price for each credit will depend on negotiations that will be carried by the World Bank’s Forest Carbon Partnership Facility (FCPF) with Costa Rica’s officials, according to the bank.

Some projections published last year during the 5th Carbon Fund meeting of the FCPF in Paris, indicated that Costa Rica would offer around 12.6 million emission reductions to the bank as part of the deal, indicating a price of $5 for each credit.

Costa Rica’s program to reduce emissions from deforestation and forest degradation (REDD), funded by a domestic tax on gasoline, has been active for over a decade and is the world’s first nation-wide system.

More:
http://www.trust.org/item/20130911114847-dbm87/?source=hptop

[quadrature]

1. this is extortion

pay us 63 Mil,
or we'll chop down these trees

[CRH]

3. Not really, ...

it is money that will be used for more reforestation.

Along with this reforestation Costa Rica has set a goal of being carbon neutral early in the 2020's.

With the recent explosion in new cars in a lifestyle inching closer to first world, it will be interesting to see if the country can meet this goal. Time will tell, but at least the country acknowledges the problem and has a plan in place to try and meet the carbon free challenge. The 63 million is a good way to spend the world bank's money.

[lonestarnot]

2. Fucking World Bank. Fucking banks period.