Citola Blog
Citola Projects and the CPRS
It has been a busy few weeks for Citola with the continued development of the project portfolio and the politics surrounding the Australia Carbon Pollution Reduction Scheme (CPRS).
As part of Citola’s drive in the carbon forestry markets, Citola is pleased to announce an agreement with the Madre de Dios REDD project. This avoided deforestation (otherwise known by the acronym REDD – Reduced Emissions from Deforestation and Forest Degradation) project involves the conservation of 100,000 Ha of land that is increasingly coming under threat from deforestation under a ‘business as usual’ scenario.
Angus Macnee, CEO of Citola Group plc, has said: “Amazonian deforestation is a major contributor to global carbon emissions and we are excited to be working with the Madre de Dios REDD project to commercialise their carbon offsets and promote conservation.”
The Madre de Dios REDD project adds to the diversity of Citola’s portfolio of projects and its location in Peru underlines the geographical diversity of the Citola offering, as we support sustainable forestry management in forestry-certified timber concessions in South America.
In addition, as part of Citola’s ongoing commitment to reforestation and the development of carbon sinks, Citola is pleased to now be working with the Panama Reforestation Carbon Project. This project provides strong environmental and social benefits by reversing the negative impacts of rural-to-urban migration.
See Corporate Release for more Information: Citola Diversifies Carbon Offset Portfolio with Two Forestry Projects
On the policy side, the Australian CPRS has been delayed due to ‘political realities’ and the Australian government waiting to see how a global framework will operate with the ‘major economies’ post the Kyoto period of 2012.
Despite the delay of the CPRS, Kevin Rudd, the Prime Minister of Australia, has said he remains committed to action on climate change: "Climate change remains a fundamental economic, environmental and moral challenge for all Australians and for all people of the world."
For many the delay of the CPRS is a frustration, however, Citola is positive about its pipeline of Sustainable Carbon Forestry projects whose offering and underlying assets remain exciting on every level: the property, timber and carbon and forestry-related products make for a compelling combination.
As Angus MacNee says: “The underlying earnings of our Australian sustainable forestry projects are driven by forestry-related products for which there is tremendous appetite in the market. We ensure that Citola’s projects (and project sites) are Kyoto-compliant and able to be verified to international standards meaning we can monetise carbon on international markets. The CPRS delay is unfortunate for local players, however, Citola is anticipating a strong period of growth over the next twelve months.”
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