Press release

Silva Tree Launch "Grow Your Own Credits" Carbon Offset Project for Businesses

Updated on Thursday 13th of November 2008

Silva Tree staff

A carbon offset is a financial instrument representing a reduction in greenhouse gas emissions, measured in metric tons of carbon dioxide. One carbon offset represents the one metric ton of carbon dioxide removed from the atmosphere. In the voluntary market, environmentally minded organisations, businesses and individuals purchase carbon offsets to neutralize their greenhouse gas emissions caused by transportation, electricity consumption, travel and other sources.

Not all companies, however, have an environmental budget that stretches far enough to purchase sufficient Carbon offset credits to reduce their Carbon footprint sufficiently, regardless of their environmental sensibilities and good intentions. The price of a Carbon offset credit can range from 10 USD to 90 USD, and many small to medium companies simply do not possess the ability to pay these prices.

Silva Tree S.A is now marketing the Carbon Offset Forestation Project in Costa Rica. This groundbreaking new product originally created by lawyers, tax advisors and environmental experts is aimed at environmentally conscious individuals or corporations who wish to offset their carbon emissions for a fraction of the price of buying credits.

Silva tree S.A purchases plots of primary rainforest and plots for reforestation which generate varying levels of carbon offset credits. Investors then lease part of the forestry project thus giving them the rights to the credits produced by their land. By cutting out the credit brokers, investors can enjoy literally "growing their own credits" for a fraction of the price of buying them. One credit acquired by investing in the Silva Tree Carbon Offset Reforestation project will set the investor back just $1.30.

The only snag is that, this being a project not a credit bank, the investor has to pay for the next 50 years' credits upfront. The minimum investment is $12000, which will buy 5000m2 of rainforest with a production of 200 carbon offset credit per year. This land will be the property of the investor for 50 years, offsetting an average of 200 tons of CO2 per year for that duration. Although the investment is a small one, buying offset credits form a broker can be done gradually with an annual budget rather than coughing up the whole amount upfront- it is a toss up between value for money and cashflow.

Perhaps one factor that will tip the balance is this: investment in an actual project allows companies to take advantage of the PR benefits: One can use the name of the project, its logos, pictures and other materials in company marketing, newsletters and packaging.

"Companies can send their staff over to the project as a team building exercise, give away free trips to their customers, whatever they want really. There is a great hands-on feeling when you are directly involved in a project and customers will notice this", says Keren Katz, Director of Silva Tree S.A.

It is usually impossible to invest directly into an environmental project at such a low level but Silva Tree believe everyone should be able to do their bit without breaking the bank.

"We want everyone to be a part of our project, why should only huge companies with millions to spend be able to invest into a project which helps our planet?" says Keren Katz.

A further advantage of being a part of the project is that any surplus credits can be sold via the usual brokers for $10, bringing a return on investment.

Source: Silva Tree