Ecuador’s novel plan to save rainforest

Ecuador’s novel plan to save rainforest
By David Blair in Yasuni National Park

Published: January 3 2011 23:21 | Last updated: January 3 2011 23:21

In the verdant underworld of the Amazon rainforest, shielded from the sun’s rays by the electric green foliage of towering kapok trees, many hazards can trap the unwary. A barely noticeable hole in the moist black soil will, if disturbed, disgorge streams of bullet ants, so named because the pain of their bite is said to feel similar to being shot.

Further beneath the shimmering emerald canopy of the Yasuni national park in Ecuador is another, infinitely more dangerous peril. No less than 846m barrels of oil – 20 per cent of the country’s known reserves – lies below this pristine expanse of rainforest, covering almost 1m hectares.

Yet Ecuador has taken a decision that no other oil-endowed country has so far considered. It will refrain from developing the reserves beneath Yasuni national park and leave the forest untouched, if the outside world will compensate the country with half the money it would thereby forgo.

Extracting the oil would yield $7.2bn for Ecuador’s government. Rafael Correa, president, is asking for $3.6bn over 13 years in return for leaving the reserves in the ground. If this unprecedented scheme wins the required support, it should guarantee the future of those who inhabit this unspoiled region of the Amazon basin.

“If I can, I will teach my children this way of living,” said Remigio Alfonso, now 20. “I will teach them about the plants and the animals.”

More:
http://www.ft.com/cms/s/0/7493ad72-1766-11e0-badd-00144feabdc0.html#axzz1A6yVg6XV

Perhaps they would be well advised to leave that oil in the ground, since it will probably double in value every decade. In 13 years, it will be worth $19bn even if no one provides the compensation.

Mater of fact, WE should be doing this in the US, just leave the oil in the ground and let it appreciate in value. Right now, it is the safest most profitable investment I can think of.