You are on page 1of 18

Carbon Offset

Reforestation Project
Make an environmentally and financially responsible investment

Offset your CO2 for a fraction of the price of buying credits

Index
Overview........................................................................................................................................................................3 Investment summary.....................................................................................................................................................3 Project summary............................................................................................................................................................3 Who we are....................................................................................................................................................................3 What is a carbon offset credit?......................................................................................................................................4 Investment details..........................................................................................................................................................4 Why our investment is secure........................................................................................................................................5 Your investment return...................................................................................................................................................7 Current carbon offset prices..........................................................................................................................................8 Carbon offset market growth.........................................................................................................................................9 Carbon offset market projection.....................................................................................................................................9 How to sell your credits................................................................................................................................................10 How to make your returns............................................................................................................................................10 Project details...............................................................................................................................................................11 Global warming............................................................................................................................................................12 The greenhouse effect and carbon dioxide.................................................................................................................13 Biodiversity...................................................................................................................................................................14 Our partners.................................................................................................................................................................15 Frequently asked questions.........................................................................................................................................16 Risk Management........................................................................................................................................................17

-2-

Overview
Worldwide Green is giving private investors and corporations the opportunity to become a direct part of an environmental project yielding high financial returns, or low priced offset credits. This is a unique chance to grow your own credits whether you prefer to use them to offset your carbon footprint or to sell them for a high return on investment. Either way, your input will help save the Ecuadorian rainforest and the animals that live in it, as well as contributing to the fight against climate change: The perfect green investment is finally here.

Investment summary
Invest US$12,000 or currency equivalent (excluding closing costs, see page 5), receive a minimum projected return of 15% per year for 50 years,(based on current market prices of carbon offset credits, please see Your Investment Return section). In the first year we even guarantee an 8% minimum return. Prices start at US$12,000 (or GBP or uro equivalent depending on country of residence of investor, excludes closing costs, see page 5) for one unit of land which currently produces 200 carbon offset credits per year. These are sold for a market value of US$10 each, giving you an initial annual return of US$2,000 per unit. The credit prices are expected to increase steadily according to market trends, thus your annual return could increase every year (please see Your Investment Return on page 7).

Deforestation is responsible for 20-25% of global carbon emissions, by the burning and cutting of about 34 million acres of trees each year
(Source: NASA)

Project summary
The project is based in the Ecuadorian rainforest, a location of great biodiversity and political stability. The main activities of the project are: prevention of deforestation through the purchase and conservation of rainforest land, as well as reforestation by planting trees in adjacent farmland. These two activities are independently monitored by quantification and verification companies, and carbon offset credits are allocated to the project at the rate of approximately 200 credits per unit of land. These credits are sold to the voluntary carbon market which is growing steadily every year.

Mr. Redshaw, head of environmental markets at Barclays Capital


Carbon will be the world's biggest commodity market, and it could become the world's biggest market over all

Who we are
We are a fully incorporated Ecuadorian Company under United States (US) management. We have many years of experience in forestry in Ecuador as well as a strong business background. We work closely with lawyers, environmental experts and accreditation experts to ensure our product is in accordance with all legal and environmental guidelines. Primarily a conservation company, we have released a part of our project in order to facilitate expansion and further environmental work in the rainforest. Our on-site team are responsible for the project development and its social impact factors.

-3-

What is a carbon offset credit?


Individuals and organisations produce CO2 gases through their daily activities such as air and car travel, burning of fossil fuels for energy etc. Trees and plants in the rainforest, on the other hand, absorb CO2 gases. Every ton of CO2 absorbed by the rainforest is equal to one carbon offset credit. People buy offset credits to neutralise the CO2 emissions they create in their every day lives. The amount of CO2 produced by an individual, couple, family or company is called a Carbon footprint and the number of carbon offset credits required to neutralise one's footprint depends on its size- the bigger the footprint, the more credits are required to offset it. Offsetting one's entire footprint is known as becoming carbon neutral. Carbon Offset credits have become a very popular product as society is becoming increasingly aware of the dangers of climate change and the damage we are causing to our planet with our carbon emissions. Companies also are publicly reducing their carbon emissions and offsetting the rest, as they are acutely aware of the business advantages of becoming carbon neutral. Carbonpassport.com
64 per cent of consumers are more likely to use a business that claims to have a low carbon footprint

The...disruption of the Earths climate by manmade greenhouse gases is already well beyond dangerous
John P Holdren, Harvard University

Forestation is particularly relevant to the activity of CO2 offsetting because plants physically remove carbon dioxide from the atmosphere. Whilst there are arguments for the importance of the development of renewable energy, rainforests are essential to the immediate removal of dangerous CO2 gases from the air.

Investment details
Key points Low investment amount from just US$12,000 (excl. closing costs*) * Closing costs of US$600 +1%, plus US$190 AML fees if applicable Finance available for 1 year (please contact us for details) Guaranteed 8% return in first year Projected up to 15% return in subsequent years Fully accredited and verified project 50 year lease Land lease held by Trustees in the Ecuador "Saving forests is critical for tackling climate change. Without action on deforestation, avoiding the worst impacts of climate change will be next to impossible
Johan Eliasch

-4-

Why our investment is secure


We have gone to great lengths to ensure maximum security for your investment in our project. If you wish to see any of the supporting documents for the information below, please request them from our customer services department who will be happy to send them to you. Land is held in Trust with a Ecuadorian Trustee - The Worldwide Green holds a lease over the land, which is registered in the Ecuadorian Land Registry through a non-trading US subsidiary company. This registered lease is held in trust for you, the Purchaser, and secures the land for the duration of the project, ring fencing it against third party risks and securing your rights to the carbon offset credits your land unit produces. In addition, an individual Lease Assignment Agreement, evidencing your ownership, will be issued in your name by the Trustee. Finally, the carbon credits produced by the land need to be quantified every five years, therefore, the estimated cost of obtaining the quantification, for the full period of your ownership, will be deposited with the Trustee from day one. This is your guarantee that your land will continue to be quantified in the future. Low investment amount from just US$12000 (or currency equivalent, excl. closing costs*)- Many investment products require a minimum investment of several hundred thousand dollars, but we believe that everyone should be able to benefit from a great investment opportunity. Guaranteed 8% return in the first year - We are so confident of selling all your credits from that we will personally guarantee a return of 8% in the first year (not applicable if you are selling your own credits). You are investing in a rapidly growing market - In today's financial climate few markets are growing, but ours is a product that is booming even during a worldwide recession. Chris Morrison, Blue Source
Several companies who are heavily involved in the major stock exchanges are betting that carbon offsets will become the next big trading opportunity

Ethical or socially responsible investment (SRI) is one of the most rapidly growing areas of finance
(Source: Sparkes, Russell)

We do not accept monies- Once you have signed the application form you will be contacted to transfer the investment sum into the Trustee's escrow account. Only once the Lease Assignment Agreement has been signed by both parties will the Trustee transfer the funds to Worldwide Green.

The battle against climate change cannot be won without the world's forests-this is now clear.
UN Secretary-General Ban Ki-moon

-5-

Ecuador is a highly active member of the Organization of American States and the United Nations. The Inter-American Court of Human Rights and the United Nations University of Peace are close to Ecuador and Ecuador is a member of the International Criminal Court, with a Bilateral Immunity Agreement of protection from the US-military. Ecuador is the ideal environment for the project- Ecuador is a true pioneer in the fight against Global Warming and the carbon offset market. In the late 90's Ecuador was one of the first countries to sell Carbon Credits. Just released: Ecuador now has Carbon Credit Financing planned for a major Ecuadorian Reforestation project Although megadiversity is not a word found in the dictionaries, that's how most biologists would describe Ecuador. The Ecuadorian government itself runs similar projects- Ecuador is a leader within Latin American countries in the development of reforestation, forest conservation, and sustainable forest management activities. In this process of developing and selling carbon offset credits, a considerable amount of experience has been achieved. The Ecuadorian government body is currently involved in similar projects to ours, thus you will be investing in an incentive which runs parallel to that of the government itself. A letter of recommendation is available upon request. The project is subject to regular monitoring by 3rd parties- The project is independently quantified by Bioeco (please see partners section) every five years. The global standards Voluntary Carbon Standard (VCS) and the Climate, Community and Biodiversity Standard (CCBS) are being employed for the project, these are two of the most recognised official project standards in the world. We have a Ecuadorian legal firm overseeing the project and an optional independent company, to oversees the security of the area. For your protection the Trustee will actually hold a registered lease on the land. The land itself is safe- The rainforest is moist all year round which makes it insusceptible to fire, and the project is an area which is not prone to hurricanes, volcanic eruptions or earthquakes. Additionally, although rainforest, almost by definition, requires little or no management, a local independent company can be appointed at no extra cost to yourself to ensure security against poachers and illegal loggers. Our project is regularly monitored by 3rd party environmental experts

There is a growing demand for.. .carbon assets that promote... development and poverty reduction in...the world's poorest nations".
James Murray

We put our money where our mouth is - By opening up our project to independent investment, we are merely asking you to invest in something in which we ourselves have already invested. We stand beside you as a part of this project, not as vendors but as equal participators.

-6-

Your investment return


Returns of 15% p.a. are calculated on the basis of current Carbon offset credit prices (please see table on page 8). Data taken from New Carbon Finance, the leading provider of research and analysis across all of the worlds carbon markets, suggests that the Carbon offset market is growing and prices of voluntary credits are likely to increase steadily. Based on the current and projected growth of the credit market, we have calculated what your returns would be if credit prices were to increase over the next 50 years. Since the carbon offset market is relatively recent, we have used the best possible resources for making projections but these are estimates and in no way a guarantee of income return. Table shows credits production, annual return with 7.5% price increase and annual return with 10% price increase. Figures are in US$:
Credits Production 10% Credit deduction Care and management Cost produced credits net produced credits Credit return with 7,5% price increase Annual Income Credit Price Credit Price Cumulative Income Credit return with 10% price increase Percentage return 15.00% 16.50% 18.15% 19.97% 21.96% 35.37% 56.96% 91.74% 100.91% 147.75% 237.95% 383.22% 617.17% 993.96% 1600.78% Annual Income Cumulative Income

1 2 3 4 5 10 15 20 21 25 30 35 40 45 50

year

200 200 200 200 200 200 200 200 200 200 200 200 200 200 200

20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

180 180 180 180 180 180 180 180 180 180 180 180 180 180 180

$10.00 $10.75 $11.56 $12.42 $13.35 $19.17 $27.52 $39.51 $42.48 $56.73 $81.44 $116.92 $167.85 $240.98 $345.95

$1,800.00 $1,935.00 $2,080.13 $2,236.13 $2,403.84 $3,451.03 $4,954.40 $7,112.68 $7,646.13 $10,211.17 $14,659.46 $21,045.55 $30,213.61 $43,375.54 $62,271.20

$1,800.00 $3,735.00 $5,815.13 $8,051.26 $10,455.10 $25,464.76 $47,013.06 $77,948.43 $85,594.56 $122,360.15 $186,118.92 $277,652.89 $409,061.74 $597,716.13 $868,553.90

$10.00 $1,800.00 $11.00 $1,980.00 $12.10 $2,178.00 $13.31 $2,395.80 $14.64 $2,635.38 $23.58 $4,244.31 $37.97 $6,835.50 $61.16 $11,008.64 $67.27 $12,109.50 $98.50 $17,729.52 $158.63 $28,553.57 $255.48 $45,985.81 $411.45 $74,060.60 $662.64 $119,275.34 $1,067.19 $192,094.12

$1,800.00 $3,780.00 $5,958.00 $8,353.80 $10,989.18 $28,687.36 $57,190.47 $103,095.00 $115,204.50 $177,024.71 $296,089.24 $487,843.86 $796,666.60 $1,294,028.71 $2,095,035.35

Table showing annual credit production and subsequent cost per credit.
C redits P roduc tion 10% Credit deduction Care and management Cost produced credits net produced credits C redit C ost price Cumulative Credit Price Cumulative Net Credit Production

1 2 3 4 5 10 15 20 25 30 35 40 45 50

year

200 200 200 200 200 200 200 200 200 200 200 200 200 200

20 20 20 20 20 20 20 20 20 20 20 20 20 20

180 180 180 180 180 180 180 180 180 180 180 180 180 180

180 360 540 720 900 1800 2700 3600 4500 5400 6300 7200 8100 9000

$66.67 $33.33 $22.22 $16.67 $13.33 $6.67 $4.44 $3.33 $2.67 $2.22 $1.90 $1.67 $1.48 $1.33

-7-

Current carbon offset prices


Source: EcoBusinessLinks.com
Carbon Offset Provider AtmosClear Climate Club USA Carbonfund.org USA Carbon Footprint Offsetters Canada LiveNeutral.org USA The CarbonNeutral Company UK Terrapass USA ClearSky Climate Solutions USA Price (US$ / Metric Ton CO2) $5.40 - $25.00 $10,00 $10.00 (CER's) $12,00 $12.64 (USA) 7.50 (UK VAT incl.) $13,12 $15,00 Methane Renewables, Efficiency, Reforestation Renewables Efficiency Renewables, Efficiency, Reforestation, Methane Renewables, Methane Forestry/reforestation, Methane Project Types Car, Home Home, Car, Air, Events, Business Personal, Business Car Car, Air, Events, Business, Deliveries, + many others Car, Home, Air, Events, Business Personal, Car, Air, Custom packages for businesses, events and organizations Car, Air, Sea, Events, Political Campaigns Air, Car, Home, Hotel Home, Car, Air, Business Home, Vehicle, Personal, Travel, Event, Business Air, Car, Home, Business Home, Air, Business, Event Air, Events, Business Car, Air, Motorbike Home, Commute, Business Home, Air, Car, Business n/a Home, Car, Air Life, Air, Business, Travel, or on request Air, Car, Home, Business Offset Types

Standard Carbon USA Sustainable Travel International US, Switzerland Climate Friendly Australia Enviro Friendly Australia Uncook the Planet Australia Bonneville Environmental Foundation USA Myclimate Switzerland Clear UK Carbon Passport UK Global Cool UK 3Degrees USA Bleau Ventures Carbon Offset UK Cleaner Climate UK & Australia

$15,00 $15,25 $16.00 - $19.00 $19,00 $19,45 $29,00 $33.00 - $99.00 17.95 19.75 20.00 $17,00 $24.00 - $28.00 $15.00 - $18.00

Methane, Efficiency, Renewables, Carbon Sequestration Renewables Renewables Efficiency, Reforestation Efficiency Renewables Renewables Various, depending on CDM offset projects Renewables, Methane Renewables, Efficiency Methane, Renewables, Sustainable Forest Management Efficiency, Reneable energy stove programmes Renewables, Efficiency

a: Atmos Clear - Low price for 25 Ton option at $135 1. Offset Types: There are hundreds of potential offset types. We have limited our survey to just the most common. 2. Verification: "n/a" means we were unable to determine a third-party verification body. The projects may, however, be verified. 3. Choice: refers to whether customers may choose between project types and/or specific projects. 4. Price: prices change and exchange rates fluctuate. The data listed was first gathered from the respective websites July 21, 2006 5. Other offset providers may exist. This survey provides a cross section of the industry, projects may be added or removed over time. 6. Some information may be incomplete or has changed. We welcome updates. * Please make sure that additionality is offered by the offsetting projects. CCX and certainly some others as well do not guarantee this.

-8-

Carbon offset market growth


Volume (MtCO2e) 2006 2007 14 42 10 23 25 65 1,044 2,061 537 551 25 240 16 41 20 25 1,642 2,918 1,667 2,983 Value(US$ million) 2006 2007 59 258 38 72 97 331 24,436 50,097 5,804 7,426 445 5,451 141 499 225 224 31,051 63,697 31,148 64,028

Markets

Voluntary OTC Market


CCX Total Voluntary Markets EU ETS Primary CDM Secondary CDM Joint Implementation New South Wales Total Regulated Markets Total Global Market

Source: Ecosystem Marketplace, New Carbon Finance, World Bank

Carbon offset market projection

Source: Ecosystem Marketplace, New Carbon Finance, World Bank

-9-

How to sell your credits


If you are choosing to sell your credits rather than using them to offset your own carbon emissions, or if you have surplus credits after your own offsetting, you can sell your credits in the following ways: Sell your credits yourself: Your credits will be registered annually in your name with an official carbon registry, to allow you to transfer or retire them yourself. There will be a 5% management fee to cover the cost of registration, fees and admin costs. Sell your credits via a Management Company: A Management Company appointed to sell your credits has existing relationships with credit brokers and bulk buyers to ensure all the project credits are sold every year. This is the most popular option as it is the easiest and most secure way to make sure your credits are sold. They charge a 5% management fee and additional 5% sales commission to cover associated management and credit sale costs respectively.

How to make your returns


You will own the Carbon Offset Credits produced by your land and, if you choose to appoint it and it accepts your appointment, the Management Company will sell them for you. The Management Company will pay you the return from your credit sales, once the credits are sold. This often happens in advance and, in case of the Carbon Offset Credits being sold for 3 years in advance, you will receive the full amount at that moment.* This will be paid to you as a cost to the Management Company, as the Management Company will be buying the Carbon Offset Credits from you to sell on.** This ensures a tax free transaction.***
* IMPORTANT NOTE: You will NOT be able to sell your unit on during the period for which you have already received returns. ** An invoice will be raised from you to the Management Company for inclusion in their accounts. *** It is then up to you to include this income on your income tax return according to the laws of your country of residence. We are in no way advising you to commit tax evasion.

All the big global investment banks are hurrying into carbon finance.
(Source: Fortune Magazine)

...Corporations... have come to see climate-change mitigation and adaptation not only as necessities but as opportunities. John P. Holdren, Harvard University

- 10 -

Project details
We buy primary and secondary rainforest from private owners in Ecuador. Agricultural land is in high demand in the country and, despite the environmental sensibilities that instinctively exist in the Ecuadorian people, the high price tags of their land creates the temptation of selling it to be cut down. We buy this land at a fair price, not exploiting the local people, and give them the opportunity to make money without having to sacrifice the beautiful rainforest they are so proud of. If they are inhabitants of the land, we allow them to stay there, often finding employment for them within our reforestation initiative. Socioeconomic factors are at the core of the project with various initiatives and activities being launched and planned. (please ask us for details) We contract 3rd party forestry engineers and environmental scientists to perform fieldwork measuring the biomass of the rainforest and the levels of CO2 absorbed by the vegetation. Experts are contracted to advise on the type of plant life that is most likely to generate as many carbon credits as possible whilst also mimicking the natural rainforest to create an extension of the real forest, not just a quick and inappropriate carbon basin. The project design and methodologies adopted are taken from the Voluntary Carbon Standard authority (VCS) in Geneva and the Climate, Community, Biodiversity Alliance (CCBA) for the relevant project activities. All credits produced are registered in an official global carbon registry. These measures ensure that the product is authentic and that credits cannot be double-sold.
If, rather than doing it yourself or through another agent, you appoint the Management Company we recommend and it accepts your appointment, the

Only a quarter of the original forest cover in Ecuador is still standing.

Management Company will market the credits for sale on your behalf, will issue certificates of ownership and will create any marketing materials you may require for your business or personal portfolio. Additional activities include hosting guided trips to see the project, environmental research and educational initiatives.

Procedure
Joining our project could not be easier: Complete our Application Form and return it to us by fax or email with a copy of your proof of ID. Transfer the purchase amount to the escrow account. The completed Lease Assignment Agreement (LAA) and Management Agreement will be sent to you. Send the signed LA A and Management Agreement back to us. We send the LAA to the trustee and only then will monies be released by the trustee. You receive a complete investor pack including watermarked certificate and your copy of the signed LAA. You receive the Carbon Offset Credits annually.

Foreign Minister
For Ecuador to be successful towards our goal of carbon neutrality by 2021, we will require international support to scale-up our efforts to conserve existing forests and increase reforestation and restoration activities. Only through an integrated approach to forestry, can we push back the effects of climate change. Today we have a historical opportunity to make things right and correct the mistakes of the past."

- 11 -

Global warming
Scientist have recently discovered that the Earth's temperatures is rising at an alarming rate: If we see a further 3 degree rise in temperature, we will be at the point of no return. This temperature rise is commonly known as global warming. NASA
Because of rapid warming trend over the past 30 years, the Earth is now reaching and passing through the warmest levels seen in the last 12,000 years

Print resolution still of global temperature anomalies averaged from 1880 to 1884. (source:http://svs.gsfc.n asa.gov/vis/a000000/a0 03300/a003375/) "UNEP, ecologists and the scientific community have long argued that forests are...worth billions if not trillions of dollars if only we can capture these in the economic models".
UN Under SecretaryGeneral

Global temperature anomalies averaged from 2002 to 2006. (source:http://svs.gsfc.n asa.gov/vis/a000000/a0 03300/a003375/)

John P. Holdren, Harvard University


The ongoing disruption of the Earth's climate by manmade greenhouse gases is already well beyond dangerous and is careening toward completerly unmanageable

"According to the IPCC avoided deforestation would cut emissions by up to 25 per cent, while almost every economic analysis of climate change shows it is one of the most important actions we can take"
Abyd Karmali, global head of Carbon Emissions at Merrill Lynch

- 12 -

The greenhouse effect and carbon dioxide


The main contributor towards global warming is known as the Greenhouse Effect: Atmospheric gases known as Greenhouse Gases (or GHGs) form a layer around the Earth which radiates heat and keeps our planet at a habitable temperature. However, the recent increase in these gases has caused excess heat to be trapped in the atmosphere and is taking the surface temperature of the planet to higher levels than we can stand. If the greenhouse gases in the atmosphere are not reduced immediately, the Earth's temperature will continue to rise with catastrophic consequences. We are already beginning to see the effects of such global warming. John P. Holdren, Harvard University
Changes in monsoon patterns are unleashing floods and droughts and hurting agricultural productivity in China and India

The most abundant of greenhouse gases is Carbon Dioxide which is released by human activity on a gargantuan scale. If our CO2 emissions are not reduced significantly and immediately, the planet as we know it will be a thing of the past. John P. Holdren, Harvard University
Changes in monsoon patterns are unleashing floods and droughts and hurting agricultural productivity in China and India

If humanity wishes to preserve a planet similar to that... to which life on Earth is adapted, CO2 will need to be reduced form its current 385 ppm [part per million] to at most 350ppm
(Source: NASA)

James Hansen, director of the NASA Goddard Institute for Space Studies
If humanity wishes to preserve a planet similar to that on which civilization developed and to which life on Earth is adapted, CO2 will need to be reduced from its current 385 ppm [part per million] to at most 350ppm

Deforestation accounts for more carbon emissions than all the planes, trains and cars on Earth (source: Karen Foerstel, the nature conservancy ) so it is essential that these forests are saved by supporting projects such as ours. Bill Stanley, Global Climate Change Initiative, The Nature Conservancy
Deforestation accounts for roughly 20 percent of global carbon emissions and more than 30 percent of emissions from developing countries. Halting deforestation over the next 50 years would protect important habitat while also providing around 15 percent of the carbonemissions reductions needed to stabilize global temperatures

- 13 -

Biodiversity
Biodiversity is the variety of life on the planet, from micro-organisms to blue whales, along with the plant habitats they depend upon for survival. Biodiversity is a basic part of the Earth's life support system. It supports fundamental natural services for people and animals such as fresh water, fertile soil and clean air. Habitat loss is considered to be the main cause of current biodiversity loss. Clearance of native vegetation for agriculture, timber and industry destroys these habitats and all the animals living in them. Ecuador is home to between 7% and 8% of the planet's biodiversity. If Earth's creatures are to be saved, we must first save the habitats where they exist in most abundance. Mike Hoffman, Conservation International
We believe everything can be saved. It's about where you go first. If we fail in the hotspots, half of biodiversity is gone. Finished.

Measuring the variety of nature & selecting priority areas for conservation.

By 2050 between 15 and 37 percent of the species on Earth might me committed to extinction as a result of climate change alone
(Source: Conservation International)

GLOBAL BIODIVERSITY VALUE: a map showing the distribution of some of the most highly valued terrestrial biodiversity world-wide (mammals, reptiles, amphibians and seed plants), using family-level data for equal-area grid cells (ref 10), with red for high biodiversity and blue for low biodiversity.
Source: Biogeography & Conservation Lab The Natural History Museum

The war (on climate change) is about to happen. It has to happen.


(Source: Zerofootprint )

- 14 -

Our partners

Frequently asked questions


Q. There have been some concerns raised in the press about some reforestation and carbon offset projects, exploiting their position for quick gains/ profit Why is this product different?

- 15 -

A. The stories in the press talk of get-rich-quick schemes of planting fast-growing trees and then cutting them down, then claiming that this offsets CO2. It doesn't- the dioxide carbon is released as soon as the trees are cut down. Other bogus schemes claim to be reforesting while they plant foreign species in unsuitable areas because they grow faster than indigenous plants. We plant only local species and we do not cut the trees down apart from some essential thinning which benefits plant growth. Q. How do I know this project is genuine? A. We have complete supporting documentation available to anyone who wishes to see it, we do not accept monies ourselves; they are held by the Trustee until the LAA is issued in your name, and if anyone is still concerned, we can arrange a visit to the project itself including a tour of the forest and the people involved in the project. We will pick you up from the airport and can even help with arranging accommodation and transport. Furthermore, we will even pay for your trip if you buy 10 units or more. Q. Why do I get a Lease Assignment Agreement and not a freehold purchase agreement? A. According to local law, if we were to sell freehold land, each and every plot would have to be separated and registered individually, as well as given road access. It is physically impossible to build roads in between and going to every unit of rainforest, and it would of course destroy the forest if we were to do this. This law does not apply to a lease transaction. Q. How do I know that these credits are any good? A. The credits produced are quantified by qualified engineers following the IPCC guidelines, are verified by a globally recognised 3rd party and are of the same standard and type as the credits sold by the Ecuadorian government itself. Q. How do I know that the accreditation will be renewed every 5 years once I have paid my money? A. Worldwide Green is bound by the LAA to renew the quantification report. Moreover, funds will be deposited in a 3rd party escrow account and held aside for this purpose. Q. Can I renew my Lease Assignment Agreement at the end of 50 years?

A. Yes, the lease is renewable by you after 50 years . The value of the land will be the market rate of the Unit at the time of renewal and will be priced accordingly. This valuation will be carried out by a valuer from a bank in Ecuador, thus ensuring the value will be established by an independent third party. Q. What is my exit strategy? A. During the investment period, you have the option of selling on your unit, thus releasing your invested capital. Worldwide Green intends to grant other leases over other plots of land for what it hopes will be a considerably higher sum, therefore you can sell your unit for below market value whilst still making a profit. With returns projected at 100% p.a. by year 21, however, it is unlikely that any of our investors will choose to sell their investment. If, however, you wish to release your capital at any point, we can market your investment on your behalf for a 10% commission on sales price. Q. How much do I have to invest to be a part of the project? A. The minimum purchase is one unit, yielding a minimum of 200 Carbon Offset Credits for this. The current price for a unit is US$ 12,000 or monthly set currency equivalnet. Q. How can the project benefit my business, or personal portfolio? A. Aside from the financial gain, being a part of a genuine environmental project can lend enormous credibility to your company or organisation; being able to say you are carbon neutral, helping to save the rainforest and protect animal species is a great marketing tool. Q. Does the project exploit local land owners? A. No- we do not underpay land owners, and we allow them to stay on the land if they have a home there, often employing them to help with the project. Q. How do Worldwide Green make their money? A. We do not sell or lease all the land in our project, we only release small parts of it in order to raise capital for further expansion. The land that we still own creates carbon offset credits which are sold and this is where we recoup our investment.

- 16 -

Risk Management
Risk Management Strategies Developing a Carbon offset project is a complex process involving many factors, considerations and parties. Worldwide Green uses highly qualified professionals for its research, project design and implementation, consultancy and educational programs to ensure project success and business growth. Wordlwide Geeen set themselves aside from competition by adopting a new game business model to exploit first-mover advantages. We have developed our unique business model and project design to ensure we establish ourselves as market leaders, which we re-enforce with branding strategies and networking. Perhaps most importantly, Worldwide Green are working on the implementation of several projects in order to build a portfolio of products and spread risk. By pursuing several projects in a number of locations, with different designs and activities, we can compensate for any unforeseen disaster in one project with another project elsewhere. Remember! Investment in a Worldwide Green product is unique in that we only release a small part of each project, retaining the majority for ourselves. This means that we take the biggest risk upon ourselves. Our own money is invested in all that we do, so we stand beside you as fellow investors, not just project providers with nothing to lose- we make money only when you do. Risks to Investment As with any investment product, there are potential events which could lead to the devaluation or loss of your investment and Worldwide Green wish to be very transparent about these risks. Although every care is taken to avoid these events, (please see Risk Management section), the following factors may affect your investment: Climactic risk Flooding, fire, hurricane, volcanic activity and other extreme weather conditions may cause damage to the forest, affecting its carbon uptake. Natural forests tend to repair themselves in most cases (for example, fire leads to seed germination in some tree species) but the rate and speed of uptake of Carbon may be affected during this time, subsequently affecting the number of Carbon offset credits created by the project. Precautions: The locations of Worldwide Green projects are carefully selected to minimise the risk of adverse weather conditions. For example, our rainforest project is almost immune to fire because of the wet and humid conditions of the rainforest. Credit buffering is a measure required by carbon standards to account for potential future loss of credits: A certain number of credits are set aside every year as an emergency reserve in order to make up for any loss of credits caused by climactic factors. All Worldwide Green projects undertake this precaution. Business risk The Carbon offset credit market is based upon the science of global warming and climate change being a direct cause of GHG emissions. There is a possibility that in the future, new technologies will be invented eliminating the need to burn fossil fuels and thus dramatically reducing CO2 emissions and the need to purchase carbon offset credits.

The Carbon credit market is currently growing rapidly, but as the market becomes saturated over the next decades, Carbon credits may devalue. Similarly, as the market matures, competition for the sale of credits will develop and the project developer will need to have established good branding and a strong customer base to ensure the successful sale of all credits at a premium. Precautions: Aside from employing multiple certification standards to ensure maximum credit value and desirability, Worldwide Green projects are carefully designed to provide not only carbon trading benefits but also biodiversity and water quality trading rights which are independently valuable. Moreover, our project design clings to the core values underlying the carbon offset market, placing importance on social, developmental and educational benefits. These factors ensure our strength in the market even after the initial growth period, and establish Worldwide Green as a reliable and ethical project developer. Similarly, the diversity of environmental and socioeconomic benefits our projects - 17 -

contain, ensure the value of our work regardless of the carbon credit market- no matter what happens, our work will always be seen to be good. Project risk A part of the project involves avoided deforestation for carbon credit creation. As avoided deforestation is a relatively new project type in the industry, methodologies and baselines are still being evaluated by many regulatory standards. Project success is therefore difficult to achieve and may take longer than anticipated by the project developer. Similarly, the number of Carbon offset credits produced by the project depend on the current deforestation rates as a baseline. If general deforestation of the area ceases over the next few decades, the project will not be seen to be stopping deforestation and the carbon credits will cease to be produced. Precautions: Worldwide Green projects also involve reforestation which is immune to the above risks, thus we are not dependent upon the avoided deforestation credits. None-the-less, careful design is undertaken to ensure project success: Worldwide Green employs market leaders for research, consultation and project development, and the project design is steeped in core environmental and social values, and accounts for all the requirements enforced by the regulatory standards. We are pursuing avoided deforestation activities because we believe in the cause and because we wish to exploit first-mover advantages in this as yet untapped market.

- 18 -

You might also like