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A Critical Conversation on Climate Change ... - Green Choices

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226 development dialogue september 2006 – carb<strong>on</strong> tradingFrom the Netherlands to the Andes –A tale from EcuadorThe Dutch FACE Foundati<strong>on</strong>,Colombiaor ‘Forest Absorbing Carb<strong>on</strong>Dioxide Emissi<strong>on</strong>s’, was establishedin 1990 by the Boardof Management of the DutchEcuadorElectricity Generating Companies.The original idea wasto establish 150,000 hectaresof tree plantati<strong>on</strong>s to compensatefor the emissi<strong>on</strong>s from aPerunew 600-megawatt coal-firedelectricity generati<strong>on</strong> plant tobe built in The Netherlands.‘For reas<strong>on</strong>s of land availabilityand cost-effectiveness’, FACE explained, ‘greater emphasis has beenplaced <strong>on</strong> collaborati<strong>on</strong> with developing countries and countries intransiti<strong>on</strong>’. 9Since 2000, the FACE Foundati<strong>on</strong> has been producing and sellingcarb<strong>on</strong> credits from tree plantati<strong>on</strong>s as an independent, n<strong>on</strong>-profitorganisati<strong>on</strong>. It trades the credits through two Dutch companies:Business for <strong>Climate</strong> (set up by FACE in 2002 jointly with TriodosBank and Kegado BV) and Triodos <strong>Climate</strong> Clearing House.The FACE Foundati<strong>on</strong> has five projects worldwide: in Malaysia, theNetherlands, the Czech Republic, Ecuador and Uganda. The FACEProgramme for Forestati<strong>on</strong> in Ecuador S.A., or PROFAFOR, currentlythe largest, was set up in 1993. PROFAFOR has not been approvedas a UN Clean Development Mechanism (CDM) project. Butit does see itself as ‘potentially CDM-compliant’ – as sequesteringcarb<strong>on</strong> over and above what would have been the case otherwise, asproviding social, ec<strong>on</strong>omic and envir<strong>on</strong>mental benefits, and so <strong>on</strong>.PROFAFOR originally thought to plant 75,000 hectares of trees, butlater revised this goal downward to 25,000 ha. So far c<strong>on</strong>tracts havebeen signed for the plantati<strong>on</strong> of 24,000 ha, and 22,000 ha have actuallybeen planted. Initially, PROFAFOR activities were focused <strong>on</strong>the Andean regi<strong>on</strong>, or Sierra, and 8,000 ha have been planted underc<strong>on</strong>tract with 39 indigenous mountain communities. However, since2000, c<strong>on</strong>tracts have also been signed in Ecuador’s coastal regi<strong>on</strong>. 10

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