GLUT OF CARBON DIOXIDE TACKLED

MICRO FINANCE MISSION:  

Our mission is to be the best in the world in micro hydro electric and water resource management: by evolving innovative damless hydroelectric and water transfer technology. We create Today’s Tall Tree Nurseries to support Micro Finance for women farmers and their families using the Carbon Tax Fund, a new form of foreign aid. We export Mechanization into Africa for more productive agriculture.

Glut of C02 Tackled

According to a 2011 report, somewhere between 52%-65% of green house gasses are carbon from fossil fuels, and 15% resulting from deforestation (Hilderman,2011).

All of the potential carbon storage and sequestration that could be achieved through sustainable forest management would not come close to balancing out the huge majority of green house gasses that are a result of human combustion of fossil fuels.

Yet, how else can we help rid ourselves of the glut of C02? It is impossible to store carbon long-term in normal agriculture.  In contrast, trees on farms do take greenhouse gases out of the atmosphere, while providing relief to poor farmers. In addition, these farmers will have a greater buffer to adapt to climate changes.

While the trees are maturing, regular crops can be inter-planted in a grove of trees. Nitrogen fixing trees can improve soil fertility and reduce the need for expensive fertilizer. We sell agroforestry to the African farmer as adaption first and mitigation as a bonus.

Former U.S. president, Bill Clinton, said “Clearing and burning tropical rainforests is responsible for approximately 15% of global carbon emissions, but conserving forests is one of the most affordable ways to reduce pollution.” We add: agroforestry is the only way to absorb the present glut of CO2 in your world. 

Forestation-and-Carbon

The World Bank recently estimated the annual carbon market at $30 Billion without a strong contribution of the US, and Terra Global Capital reports that it could grow to $1,000 Billion by 2027.

Large tree plantations managed by foreign companies receive carbon credit funds from the European regulatory market. Yet who will be rewarded? This can be open to a lot of corruption. This so called “saving of world’s forest” can be nothing more than a land grab. 

Instead, the best way of achieving long-term, sustainable conservation is by strengthening local NGOs. Living Water Micro Finance Inc., a non-profit company, has a mission  to support African women farmers and their families and to support agroforestry, which integrates trees into their farming systems.

What better way to direct carbon tax funds: planting trees that are well maintained by African women farmers, which

  1. absorb C02 in our world environment
  2. adapt poor farmers to unstable climate change
  3. untie the shackles of unconditional foreign aid

To you, the world citizen, we sell mitigation as the only way to absorb C02 that is in our atmosphere now — replacing the tragedy of deforestation, which amount to 15% green house gases. We are talking about millions of trees on African farms.

Forest Carbon Projects

Forest carbon projects represent a fresh way for forest managers to extract value from their lands.

An Improved seed, tree and fertilizer system: Tall-Trees2Today's Tall Tree

  • To absorb carbon dioxide in order to solve the global warming crisis
  • To produce more food economically in order to deal with world famine
  • To produce fruit, nut and fodder trees that will be used for furniture and not for burning.
  • To restore land by planting nitrogen-fixing trees among the fruit, nut and foliage trees
  • To develop organic agriculture without using chemical fertilizers or pesticides.
  • To provide all requirements of daily vitamin needs.

Removing carbon from the atmosphere “offsets” carbon emissions.  As far as the atmosphere is concerned, this is equivalent to reducing emissions.  

Any firm that emits CO2, or equivalents, must legally hold permits for all of their emissions. In other words, the polluters must pay for their sins by funding our Forest Carbon Projects.

A trade-able permit system offers flexibility to the polluters on how to accomplish the environmental goal.  The permits are auctioned to the highest bidder. Once the permits are issued, the owners of the permits are free to buy or sell to anybody who wants to participate in the market (usually other polluters, but could potentially be advocacy groups).

The Important Net Present Value of a Tree

The Net Present Value  of 100 ha of trees with a nominal cost of $5000 and reporting costs of $750 every 5 years  and verification costs of $2000 every 10 years is $50,300 at the price of COof $15.

Please Note: another calculation of NPV of fruit trees living for 25 years = $0.49/tree plus $1.00/tree for maintenance: $1.49/tree. (Fruit trees are productive for 25 years and then are replaced.)

The Forestation Project ($50,300 ÷500 trees for 100 ha has  a  Net Present Value of $1.49/year (NPV) using the low cost of labor of the tree nursery and maintenance by women farmers on their own land.  The cost of reporting and verification is included. The Carbon Tax Funding requested is $74,500 (50,000 trees x $1.49) every year.

These offset projects MUST be “additional” to business as usual activities. Organizations such as the World Bank, Organization for Economic Co-operation and Development and the United Nations identify B.C.’s revenue-neutral carbon tax as a model to follow.  This is all part of a Western Climate Initiative of a carbon permit trading market, which includes California. 

We start with a charitable fund of $5,000 to be applied to 100 ha or $50/ ha. This Micro Finance Loan at 8.5%/year will be repaid at the end of each harvest after four months.

In actual fact, the growth is geometric because that same $50 continues to work every four months on new productive lands.

The calculations below are based on $15.00 per ton of carbon emissions, but this tax will change. One Carbon Tax Consulting Company said that if reforms would be adopted, there would be considerable upward pressure on prices, resulting in European carbon prices of $20 a ton in 2020, rising to $35 a ton in 2030.NPV4A

The pay back history of this loan is close to 95%. That means that this same $1,500 continues to work on additional lands. This growth is phenomenal after the break-even point at 2 years: see the graph above: $50 earning in the second  to fifth year at  $3,666;$6,881;$10,154;$13,210;and in the tenth year: $25,041

NPV3A

 The following net present value (NPV) of $83,600 for 100 ha is increased because the Province of Alberta, Canada will eclipse to $23.40/ton by 2020. This increases the NPV by 66% while the carbon tax increased by 56%. (Quebec is about $16.40 and will be $18.00 in 2020, while Ontario will be at $17.83).

 

NPV2A

Our company has targeted 8% as a desirable return on investment (ROI). This will be the rate at which you discount future income and expense streams. This analysis does not include any income from the sale of fruit or nuts, nor does it include any costs associated with the application of the fertilizer, land rental or other forest management activities. Our estimates indicate that applying this fertilizer will increase the average growth rate of your stand by 2 tons/ha/yr for a total of 6 tons/ha/yr.

THE CO2 SINK

Sadly, the rapid increase in population has also led to heavy deforestation resulting from forest and woodland land clearing for agriculture and to also meet the requirements of fuel wood, tree products and building materials.  

Inter-cropping practices can also contribute to mitigating climate change. Mono-cropping degrades soil fertility with losing soil organic carbon and also produces greenhouse gas due to intensive soil disturbance and synthetic fertilizer application. In contrast, agroforestry practices can increase soil organic carbon through organic matter provided by trees growing with crops. 90% of this potential lies in soil carbon restoration and avoided net soil carbon emission 

RE-GREENING AFRICA

In Niger, there are now at least 7.4 million newly tree-covered acres. This large-scale re-greening was not due to expensive tree-planting projects, but was the result of farmers protecting and managing young trees that regenerated on their cultivated land. Farmers in Niger have protected and managed at least 200 million new trees over the past two decades.

Agriculture in Africa is dominated by small holder farmers. Their priority is to produce enough food. Under such circumstances, any measures that will be put in place to mitigate the effects of climate change should also improve food production.Local Nursery

Living Water MicroFinance Inc.,  a charity, provides its clients seeds, nursery trees, fertilizer, know-how and, crucially, credit.

MicroFinance Logo

This is our ultimate goal: 200 million new trees planted by 2030.

Here is how we begin OUR REVOLUTION.

The Funds to Finance Rehabilitation

There are two sources of funds based on two different methods of absorbing carbon emissions: one from biochar in soils and the other from planting of trees.

On one hectare of farm land of 500 trees:

  1. Land Degradation Neutrality (LDN) Fund for BIOCHAR IN SOILSldn fund

LND Fund seeks to mobilize US$2 billion annually; they estimate that the average cost of land rehabilitation is $100- $150/ha. In Africa, five countries have voluntary committed to LND including Algeria, Chad, Ethiopia , Namibia and Senegal.

  • 500 trees/hectare will yield 50 tons of Carbon from branches and weeds or (50 tons x ⅓) 16.7 tons of CO2 emission absorption from the production of
  • The value of the capture of carbon in the form of Biochar is $250/year at the tax rate of $15/ton. (The LDN Fund offers $150/year based on $10/ton of carbon emissions.)
  1. The Carbon Tax Fund for TREES: the fund can support 500 trees for a total cost of $200/year for a period of 25 years plus an initial $750:

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  • There will be 500 trees with a NPV of $0.50/tree: at the rate of $15/ton, the Net Present Value (NPV) is $200/year.
  • Add $1.00/tree for reporting and auditing for 25 years (that’s a one-off total – not per year): $500 to be monitored by Living Water MicroFinance Inc. for 25 years.untitled-10

This part of the fund will support each 1.5 acre farm that will have access to $150/year n the form of micro finance assistance complements of the Carbon Tax Fund. Each $150 will be recycled nine times for a total of $1,350.

This micro finance will be made available to women farmers and their families who need support before the orchards become productive after 18 months: they will maintain this agroforest farms by planting vegetable like yam in between the new tree seedlings. The micro finance loan will be due after the harvest.untitled-11

The tree farm is supported by a Today’s Tall Tree Nursery managed by Living Water MicroFinance Inc. in order to reduce the cost of tree seedlings. The fruit and nut tree seedlings along with nitrogen fixing trees are supplied by Today’s Tall Tree Nursery.

The reporting and auditing of trees for 25 years at the rate of $1.00/tree will help finance a Today’s Tall Tree Nursery to service over 100 hectare (beginning with 50,000 tree seedlings). The estimated fixed cost is $80,000. This decentralized system is preferable to the present centralized nurseries that have costly transportation costs for very vulnerable tree seedlings.

This calculation does NOT include income streams from the fruit and nut produce, which are reserved for the women farmers and their families.   Irrigation can be added for a remunerative 275% crop improvement at a later date.

There will be a stipulation that all biomass on the 1.5 acre farm will be converted to Biochar every year. Creating Biochar on a farm involves incentives: the women farmer and her family will receive $150 based on the carbon tax rate of $15/ton for a total of 34 tons/year of carbon sequestered.

Living Water MicroFinance Inc. will arrange partnerships with African landlords (who provide a long term lease) for woman farmers and their families.

Leave a Comment below if you wish to have more information.

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MORE DETAILS:

AFRICA HYDRO & IRRIGATION

WATER TRANSFER & IRRIGATION: Mountain Water Transfer: the Secret to Longer Life

Agroforestry could help solve Climate Change.

 HELPING SOLVE WORLD’S CARBON POLLUTION

New Trees are the only solution to soaking up Carbon Dioxide:

Tree Growth

A Full Scale Aquaponic Tree Nursery in Africa supported by:

  1. A Micro Hydro Electric System: no dams: HugENERGY.us
  2. An Irrigation System: NORTHydro.com
  3. A Rabbit and Fish Farm: AfriCAPITALISM.us
  4. An Agroforestry Intercrop System: LivingWaterIs.com
  5. The Charitable Arm: SunnyUp.net
  6. God’s Loveletters:  Godloveletters.com
  7. Thunder of Justice: ThunderofJustice.com
  8. https://twitter.com/roaudet

OUR STRATEGY

Stage 1     Agricultural Mechanization of Africa                        
Stage 2   Today’s Tall Trees Nursery: Carbon Tax Fund 
Stage 3   Micro Finance & Landlord Cooperatives 
Stage 4   Irrigation in Remote Areas using kinetic energy from moving water.
Stage 5   Electricity Created in Remote Areas using moving water without the use of a dam.

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