Latin America’s largest cosmetics company recently purchased 120,000 tons of carbon offsets from a REDD project in Brazil’s Amazon rainforest that is led by an indigenous tribe. This transaction marks the first sale of forest carbon offsets developed by indigenous people and can be used as a template for other indigenous peoples as well as companies looking to meet their Corporate Social Responsibility requirements.
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11 September 2013 | Brazilian cosmetics giant Natura Cosméticos has
“REDD+ is a bridge between the indigenous world and the non-indigenous world, so it’s an appropriate way to begin this process,” says Chief Almir Narayamoga Surui, who spearheaded the effort. “It creates a vehicle through which the capitalist system can recognize the value of standing forests, and indigenous people can be rewarded for preserving them.”
Natura, Latin America’s largest cosmetics maker, purchased 120,000 tons of carbon offsets from the project as part of its efforts to reduce its greenhouse gas (GHG) emissions by one-third from 2006 levels by the end of 2013.
Five years in the works, the transaction required the development of a REDD template that can now be used by other indigenous people across the Amazon, as well as companies looking to meet their Corporate Social Responsibility requirements.
Meanwhile, if the staff at the California Air Resources Board (ARB) gets its way, the board
The so-called buyers’ liability provisions featured in the cap-and-trade regulations allow the regulators to invalidate credits that are found to be faulty or fraudulent and require regulated entities to surrender replacement offsets. Currently, forest owners are responsible for the invalidation risk, but the buyers bear the risk for the other project types eligible for the California program.
The regulators are aiming for consistency in the buyers’ liability provisions, seen as a noble goal and one that could propel additional development of forest projects, according to some stakeholders. However, oil major Chevron pushed back against the forestry proposal in comments submitted to the regulators in early August.
“ARB’s existing rule places responsibility with forestry owners because forests are a unique type of offset,” says Lloyd Avram, Chevron’s manager of state government affairs. “The forest owner has control over the forest and can manage it in accordance with the requirements or choose not to do so.”
“We are concerned that by changing the invalidation risk to the covered entity that uses the offset, ARB is adding unworkable burden and risk to forestry offset buyers which will ultimately discourage use of this important resource to reduce GHGs under ARB’s cap-and-trade program,” he says in the comments.
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