Ann: BP and Carbon Conscious Agree Deal , page-2

A crazy amount of good farmland is going to go under trees once the ETS comes into play, worldover! You'll reduce carbon emissions but you'll also deliver the world far less food ...

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Carbon Conscious and BP agree tree planting carbon
offset deal

Up to 10 million Mallee Eucalypt trees to be planted across Australia

14 October 2009: Carbon Conscious Limited (ASX: CCF) and BP have signed contracts for a large scale Australian bio sequestration project involving the planting of up to 10 million trees to absorb carbon from the atmosphere.

The deal signals an important move by BP to secure capacity in the Australian carbon forest sink industry. The contract involves BP paying Carbon Conscious to create large scale commercial plantings of Mallee Eucalypt trees on less viable agricultural land in the wheatbelt regions of Australia.

While large scale tree planting will substantially reduce land salinity and erosion problems, the deal is driven by the production of Australian Emission Units (AEU’s) tradable under the Australian Government’s proposed Carbon Pollution Reduction Scheme (CPRS).

BP has engaged Carbon Conscious to establish plantings in 2010, with an investment of over A $2.5 million, plus ongoing licensing fees. In return, both companies will share in the value of the resulting carbon offsets over a 15 year period. In addition, BP has acquired the option to invest further funds with Carbon Conscious for plantings in 2011 and 2012, once regulatory certainty surrounding the CPRS has been established.