NEWS RELEASE

Thursday 27 March 2003

 

 

Brazilian groups urge EU companies not to buy carbon credits from eucalyptus plantation

 

In a letter released today[1], over 50 Brazilian organisations, movements, politicians, churches and citizens from five Brazilian states urge companies and governments investing in the World Bank Prototype Carbon Fund (PCF) not to buy carbon credits originating from a project involving industrial eucalyptus tree plantations in the Brazilian state of Minas Gerais.

 

Plantar is one of the first projects to prepare for carbon credit registration with the Kyoto Protocol’s Clean Development Mechanism. The project, developed under the auspices of the World Bank's PCF in the Brazilian state of Minas Gerais, involves 23.000 ha of monoculture eucalyptus plantations for the production of charcoal, to be used in the pig iron production. Plantar has drawn criticism from NGOs from its inception as a potential CDM project because of its apparent failure to contribute to either clean development or the reduction of greenhouse gas emissions, the twin objectives of the CDM. Today’s letter adds compelling facts to an already long list of arguments against the project’s registration with the CDM.

 

”This project is not ‘clean development’ and we urge you not to invest in it,” the letter to prospective buyers of Plantar carbon credits states, “what we really need are investments in clean energies that at the same time contribute to the cultural, social and economic well-being of local populations.”

 

The letter gives testimony on/about/of the grave negative social and environmental impacts of the Plantar plantations; these include:

 

Ø       The environmental impacts of the eucalyptus plantations in the region have been severe. Rivers have dried up, eucalyptus was planted in water sources like springs, and permanent preservation areas were not respected

 

Ø       Pig iron companies still use around 15-20% native vegetation (‘cerrado’) for the production of charcoal. This is possible because of the lack of control on the roads where the transport of charcoal takes place

 

Ø       Tupinikim and Guarani Indigenous peoples, as well as traditional afrobrazilian communities and tens of thousands of peasants were expelled from their lands when companies like Plantar established themselves in the region during the military dictatorship in the 1960s and 1970s

 

Ø       Plantar does not have an environmental impact evaluation and report (EIA/RIMA) of its activities, a legal requirement in Brazil for any undertaking that potentially causes environmental impacts. This shows the “special” treatment that the company receives from the state authorities;

 

Ø       Working conditions in Plantar’s areas are very dangerous. In March 2002 the company was sued by the Regional Working Office (DRT), together with 41 other eucalyptus planting and charcoal producing firms in the state of Minas Gerais for not obeying Brazilian labour law. The company was also cited in a Parliamentary Investigation Commission (CPI) in the Parliament of Minas Gerais state as a company that is involved in illegal subcontracting of work.

 

“Those three EU member states that are involved in the PCF carry a special obligation to ensure Plantar that will not become the first registered CDM (sinks) project,” says Jutta Kill of FERN[2], “If Plantar were accepted as CDM project, these three countries would receive pro-rata credits from the Plantar plantation. Hypocrisy is the only word to describe such tacit approval of a potential CDM sinks plantation project from countries party to the same EU that only a good year ago argued very convincingly against the inclusion of sinks in the CDM.” 

 

“There is still time to show that the EU will put its money where its mouth is when it comes to buying carbon credits,” says Jutta Kill of FERN, “this letter from Brazilian groups gives all the evidence needed to withdraw from the Plantar project and ensure similar projects will not be eligible for CDM credits.”

 

ENDS

 

Contact in Brazil:

Marcelo Calazans (coordinator), FASE-ES[3] (Espirito Santo) e-mail: fasees@terra.com.br

 

Contact in Europe:

Jessica Wenban-Smith, FERN, +32 (0)2 733 0814 email: jess@fern.org

 

Contact in North America:

Jutta Kill, FERN, +1 250 799 5386 email: jutta@fern.org

 

 



[1] Available from FERN in Portugese (original) and English translation. See www.fern.org.

[2] FERN (Forests and the European Union Resource Network) promotes the conservation of forests and respect for the rights of forest peoples in the policies and practices of the European Union. See www.fern.org.

[3] FASE-ES is one of the members of the Alert against the Green Desert Movement, a broad network of organizations, churches, local groups and citizens in four different Brazilian states, which opposes the present model of large-scale industrial tree plantations in Brazil.