Introduction
Sustainability Report 2004
Environmental aspects
Climate change
Aracruz made a public commitment in its 2003 Social and Environmental Report to calculate and publish its carbon balance, as well as to evaluate its potential for generating carbon credits.
We developed a protocol for Aracruz’s greenhouse gas (GHG) emissions inventory in 2004 with the help of ICF Consulting. This work was completed in December and covered forestry, industrial and transport operations in our two operating units (Barra do Riacho and Guaíba).
An estimate of the quantity of carbon stored in the Company’s forest plantations and native forest reserves was also compiled. The main results of these works are summarized in graphs 1 and 2 on the next page.
Calculation worksheets have been developed to enable data entry to be as detailed as possible, thereby optimizing the utility of this tool. This care will enable the emissions of each operation and the types of GHG emitted to be identified more clearly, facilitating management and the search for opportunities.
Survey of GHG emissions
The methodology used to develop Aracruz’s GHG Emissions Inventory obeys the calculation protocol issued by the International Committee of the Forest and Paper Association ("Calculation Tools for Estimating Greenhouse Gas Emissions from Pulp and Paper Mills", ICFPA, 2004), and adopted by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). The methodology employed also follows the GHG emissions protocol adopted by the WRI/WBCSD ("A Corporate Accounting and Reporting Standard", WRI 2004).
Further information on the protocols of the WRI/WBCSD and Aracruz may be obtained at www.ghgprotocol.org and www.aracruz.com.br/web/en/ambiente/amb_mudancas.htm, respectively.
Survey of carbon stored in plantations
The figures presented in chart 3 below cannot be used as a measure of the carbon sequestrated by Aracruz’s eucalyptus plantations, since the Company is still working to establish the appropriate baseline for this calculation. The figures refer to the estimate of stored carbon in Aracruz’s eucalyptus plantations on December 31st of each year (2002, 2003 and 2004).
Survey of carbon stored in native forest reserves
Aracruz’s native forest reserves hold an important collection of Atlantic Forest remnants. In 2004, the first estimates were produced of the total carbon fixed in the different ecosystems at the Barra do Riacho Unit. The University of São Paulo’s Institute of Astronomy, Geophysics and Atmospheric Sciences (IAG) carried out this work.
Estimates were made of the total biomass (aerial + subterranean) of the native forest reserve areas and this value converted to tons of sequestrated carbon.
The study used mathematical equations developed specifically for areas of forest regeneration and the specialized literature concerning the types of ecosystems occurring in Company areas. Three stages of regeneration (initial, medium and advanced) were considered, in accordance with Brazilian environmental law. The table on the next page indicates the total biomass in tons per hectare (t/ha), area in hectares (ha), the total carbon in tons (t) and the percentage of total carbon fixed in each ecosystem.
| Estimate of carbon stock in native reserves | ||||
|---|---|---|---|---|
| Ecosystem | Biomass (t/ha) | Area (ha) | Total carbon (t) | % Total C |
| Advanced stage (1) | 384.4 | 14,400 | 2,767,680 | 51.5% |
| Medium stage (1) | 91.8 | 23,600 | 1,083,240 | 20.1% |
| Initial stage (1) | 12.8 | 40,000 | 256,000 | 4.8% |
| Salt marshes | 15.0 | 6,000 | 45,000 | 0.8% |
| Coastal tidal lowlands | 40.0 | 5,500 | 110,000 | 2.0% |
| Bush land | 46.9 | 13,100 | 307,195 | 5.7% |
| Swampland | 134.8 | 12,000 | 808,800 | 15.0% |
| Total | 114,600 | 5,377,915 | 100.0% | |
(1) Atlantic rainforest reserve areas.
The quantity of carbon stored in Aracruz Celulose’s areas of native forest reserve, estimated at 5.4 million tons in December 2004, will rise over future years as areas at initial and medium stages of regeneration mature.
Further details on the methodology used for the survey of carbon stocks and on the results of the inventory of Aracruz´s emissions can be found at the following websites:
www.aracruz.com.br/web/rn/ambiente/
www.aracruz.com.br/web/en/ambiente/amb_mudancas.htm.
Projects for obtaining carbon credits
Aracruz is currently developing two projects to evaluate its potential for obtaining carbon credits. The first project will assess the reduction in GHG emissions gained by replacing road transportation of logs with coastal barge transportation. The second project will consider the carbon sequestrated by the Company’s properties in preparation for submission to the Chicago Climate Exchange (CCX) in 2005. Further details on the CCX can be found at their website: www.chicagoclimateexchange.com.