cultivating strategic alliances
Rainforest Resources cultivates strategic alliances with private companies committed to mitigating and sensitizing the issue of climate change. We do this by helping them offset their carbon footprint and achieve their emission goals through the sale of carbon offset credits.
Under the 2015 Paris Agreement, nearly 200 countries have endorsed the global goal of net-zero greenhouse gas emissions by 2050.
To reach this goal it would require that global greenhouse gas emissions are cut by 50 percent by 2030.
It is clear from the data that more and more companies are aligning themselves with this agenda, with net-zero pledges doubling from 500 companies in 2019 to more than 1,000 in 2020.
This provides a unique opportunity for Rainforest Resources to assist in achieving this goal by cultivating strategic alliances with these organizations and helping them offset their carbon footprint, through the sale of carbon credits.
The demand for carbon credits could increase by a factor of 15 or more by 2030 and by a factor of up to 100 by 2050. Overall, the market for carbon credits could be worth upward of $50 billion in 2030.
The market for carbon credits purchased voluntarily (rather than for compliance purposes) is also important. Voluntary carbon credits direct private financing to climate-action projects that would not otherwise get off the ground. These projects can have additional benefits such as biodiversity protection, pollution prevention, public health improvements, and job creation.
Looking ahead, the price of carbon credits in 2030 will depend on the supply portfolio that has been mobilized, in part, as a result of buyer preferences.
Five different scenarios have been tested that build on drivers in the market today. Depending on different price scenarios and their underlying drivers, the market size at stake in 2030 could be between $5 billion and $30 billion at the lowest end of the spectrum, and up to over $50 billion at the highest end (both ranges assuming demand of 1 to 2 GtC02)
Overall there are four key implications for scaling up voluntary carbon markets:
- On the demand side, carbon dioxide removal/sequestration cannot replace the need for urgent and immediate emissions avoidance/reduction but is required even in the most ambitious decarbonization scenarios.
- A diverse portfolio of offset types is needed, from avoidance/reduction to removal/sequestration
- Buyers and sellers will need to trade credits across the world to ensure sufficient supply and allow everyone to benefit
- Rapid supply scale-up action across all offset categories is required starting immediately
Our first major project is the 12,000-hectare (29,000-acre) Sumack Sacha Forest, a primary rainforest located near Sangay National Park in the border province of Morona-Santiago.
Rainforest Resources’ primary goal in the development of the forest is land preservation. The surface area of the forest is the most water-productive land in all of Ecuador (47.4 billion m3 according to the Water Regulation Agency – SENAGUA 2007). The region is unmatched in its biological diversity, with nearly 4,000 species of flora and fauna.
The company’s own research as well as publicly available studies indicate that the forest is able to annually retain and capture approximately 1,500,000 tons of carbon dioxide.
Rainforest Resources projects sales of up to 1.5 million tons of carbon credits anually. While prices can be volatile, our sources indicate the price at around $35 per credit ton, or approximately $52.5 million USD in revenue.