euro adhoc: Precious Woods Holding AG, Zug
other
Precious Woods
Project approved for World Bank Bio Carbon Fund
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
18.01.2005
World Bank expresses interest to purchase Carbon Sequestration from Precious Woods project in Nicaragua
The World Bank, as trustee of the Bio Carbon Fund expressed its interest to buy the future carbon sequestration from a project developed by Precious Woods in Nicaragua. The project consists in the reforestation of 600 hectares of degraded pasture land with plantations of teak and native species. In addition, 355 hectares of existing secondary forest embedded within the plantations located in the Sapoa region of Nicaragua will be permanently preserved eliminating the risk of further deforestation.
Precious Woods had always anticipated benefiting from the sale of CO2 emission rights derived from reforestations and viewed this as a prerequisite to expanding into Nicaragua. The expected revenue from approximately 300'000 tons CO2 equivalent over the term of the project will be instrumental in securing the success of this expansion. Assuming such revenue from environmental benefits is sustainable, Precious Woods plans to expand the total reforestation area in Nicaragua to at least 4000 hectares in the coming years leading to a potential carbon sequestration of over two million tons.
Precious Woods (SWX: PRWN) is active in the reforestation and sustainable management of tropical forests, downstream wood processing and trading of FSC certified timber and non timber forest products. The shares of Precious Woods have been listed on the SWX Swiss Exchange since March 2002. More information about the Company and its activities may be found on the web site www.preciouswoods.com.
The BioCarbon Fund (the Fund) was designed to provide the Banks Borrowing Member Countries with an opportunity to benefit from carbon finance in the areas of forestry, agriculture and land management defined as land use, land use change and forestry, (LULUCF) in the Kyoto Protocol while undertaking activities which reduce rural poverty and improve the local environment.
The Fund has been developed in response to a perceived gap in the emerging global carbon market in the areas of forestry and sustainable agriculture. These activities can include, among others, establishing new forests, and improving agricultural practices on degraded lands.
As of January 2005 the Fund has a capital of US$32 million pledged by the Governments of Canada, Italy, Luxembourg and Spain, Agence Française de Développement, Okinawa Electric Power Company and Tokyo Electric Power Company of Japan, and Eco-Carbone of France. More participants are expected from Canada, Europe and Japan.
end of announcement euro adhoc 18.01.2005 07:00:00
Kontakt:
Precious Woods Holding AG, Zug
Dr. Theodor Scheidegger
Tel. 41 1 245 80 10
mailto:office@preciouswoods.ch
Branche: Forestry & Timber
ISIN: CH0013283368
WKN: 982280
Index: SPI
Börsen: SWX Swiss Exchange / official dealing