foreign Stop Shop for carbon off Sani which means that we're all over the the chain for offsetting services um now I'm gonna begin with a very very sad piece of information and hopefully follow up with some hopeful pieces of information the first one is if I could ask everybody to look around this room and and try to picture and then close your eyes and try to picture this room an area of this size full of trees okay and then I'm going to ask everybody to come with me to five one we just lost in this past five seconds five rooms this size of uh Amazon forest and globally we've just lost 25 rooms the size of a forest so we are living in a nightmarish you know situation almost an Armageddon um of deforestation and our mission our vision and Mars is to try to create solutions to stop uh deforestation especially in Brazil so our greatest challenge or humanity is facing basically our greatest challenge since we became men since we became you know uh Homo sapiens which is that we need to reduce half of our carbon emissions by 2030 or we're going to suffer very dramatic climate change consequences I don't need to tell you much of this but if we don't cut emissions by 50 in the next 10 years all coastal regions or coastal areas nowadays will be underwater uh the tropical areas of the world will become many habitable so nobody's going to be able to live in them because of extreme heat we're talking areas like Brazil Africa southeast Asia with uh weather of or temperatures of 60 to 65 degrees Celsius uh and that in Fahrenheit I don't know if it's like super high like 130 140 degrees and more importantly food production would decrease by 50 by 2070 so I have a three-year-old daughter when my daughter is 53 if we don't do anything food production Fall by half and that will kill the poorer half of the world uh from hunger and uh starvation in the world 20 of emissions come from deforestation from us burning and cutting down trees in Brazil's case it's even worse sixty percent of our emissions of our pollution our emission of greenhouse gases come from different stations so if Brazil were to stop cutting down trees right now we would solve 60 percent of our emission problem and why does that happen why is um why are all these emissions in Brazil coming from deforestation well basically because half of the weight of a tree is made of carbon so trees are made of cellulose molecules those are C6H12O6 when you cut down a tree or especially when you burn it the carbon atoms that are stored in the cellulose molecules they go to the area CO2 and CH4 which is methane which has a 30 times more powerful greenhouse gas impact than CO2 so what is happening in Brazil and there's this misperception globally that the problem of deforestation in Brazil is coming from logging or from mining there's some of that but most of it is agricultural producers burning down trees to clear the area for for production so what is happening in Brazil is every year in the Amazon alone you have 1 million hectares that's like the size of a smaller European country like Luxembourg being burnt down and the carbon that is stored in those trees is going to the atmosphere as 500 billion tons of of carbon and why are people doing that I think there is this misperception also globally that most of the deforestation in Brazil happens because people are evil or you know because they don't really care about the forest some of them actually care about the forest but they make a lot of money by by deforesting especially by burning down the forest because the the forested area in the Amazon is worth nothing so it's worth a hundred dollars per hectare a Hector is like a football field worth of of land so people are either invading other people's areas so they're paying nothing for that area or they're buying legally that area for a hundred dollars per hectare and they're burning it down and they're reselling for 500. repeat repeat if this guy does this for one thousand hectares which is nothing in the Amazon the Amazon has a total of 600 million factors the guy just made 400 500 000 so we need to stop this cycle how do we stop this cycle we got to make that a hundred dollars per hectare go up to something North you know higher than 500 dollars per hectare and then we'll stop it because nobody's gonna buy a piece of land for six hundred seven hundred dollars burn it down and we sell it for 500 right they're going to be losing money so that's the purpose of of moss we're seeing there's pressure from all sides and we're seeing that um the way that we can remunerate you know the the the work of conservation and making that land be more um expensive um is through the generation of carbon credits and now why are companies why do we think you know the carbon offsets aren't really just a fad or you know a fashionable thing and it's a structural problem uh for most of the companies you know that you guys manage um I'm sure you've seen that it's no longer just a a matter of marketing uh to do offsetting you know to buy carbon credits and and and cancel them to compensate to offset your emissions this is happening and it's a structural thing the demand for carbon credits because Millennials three years ago in 2019 became the most populous the most important demographic group in the world so they passed people who were born after 1980 became more important than people who were born in the 40s 50s and 60s and that is very very relevant why because Millennials care about the environment in a way that baby boomers didn't so you have some figures there the number of Millennials or the percentage of Millennials people born after 1980 who only invest in sustainable companies is 93 percent the number for our parents and grandparents is 28 and for those uh in terms of uh of purchasing of consumption habits 87 of Millennials only buy from sustainable companies or sustainable products that number for Baby Boomers is less than 20 so it's no coincidence that in the year where Millennials you know when Millennials surpassed Baby Boomers as the most important demographic group in the world everybody started talking about ESG and carbon upsetting it's not a coincidence it's not a fashionable thing and this trend will continue to be stronger and stronger and stronger until basically every single company in the world is uh buying carbon offsets or caring uh about their their emissions so I've talked about this the way to conserve the the force and to pay for the forest and make the forested area be worth more is by generating carbon credits and generating a yield uh and Brazil is basically the Saudi Arabia of carbon credits Brazil has 39 of the world's rainforests and because of that according to mckinsey's studies Brazil has the potential to generate fifty percent five zero percent or half of the world's carbon credits if you sum up all the other countries that have rainforest you know uh the Congo Indonesia Peru Colombia Angola et cetera et cetera it's not equal to one Brazil so if there is one place where conserving the rainforest is super important and especially where uh you know Carbon projects will have the scale to actually make a difference and um issue and create a lot of carbon credits that's Brazil um and because of that Trend that I mentioned that Millennials are becoming more important as consumers and investors the voluntary carbon credit Market is exploding right so the volume in dollars in 2020 was a 400 million dollars and uh last year was 2 billion and McKinsey expects this Market to be from 10 to 25 billion dollars uh by 2030. now what's the rationale how do we create the yield so that um the forest is worth more and so that we break that uh that cycle of deforestation well right now and I highly highly recommend anyone here who's you know interested in investing looking at investing on carbon credit projects in Brazil because you can buy an area for a hundred dollars per hectare that area being protected every year is going to generate 10 credits at 10 so 100 per year so imagine this investment you invest a hundred dollars and then you're making a hundred dollars a hundred dollars 100 every year for 30 years what is the variable that is wrong here why is the return so high why is the return 100 it's because the land is worth too little if you were to pay a thousand dollars for that same land then the return instead of being 100 would be ten percent and we've seen that happening in the Amazon where we are creating carbon projects that the land prices go up 10 times to reflect that remuneration and to make that remuneration more reasonable instead of 100 to become uh uh 10 percent um and as I said you know three years ago this wasn't really a thing offsetting carbon credits or offsetting emissions using carbon credits only five percent of Fortune 500 companies did had any sort of climate neutrality or or climate action commitment nowadays it's 67 so all of the largest companies in the world I'm gonna say this again all of the largest companies in the world the largest 20 companies have some sort of uh carbon neutrality agreement that didn't exist three years ago and the potential for this is still gigantic as a percentage of the world we only uh offset uh around 20 percent of our emissions so this is a market that could still grow by five to ten times and this is I think one thing that we're trying to um to promote a lot how much would you guys guess that it would cost to save the Amazon forest how much what's a dollar value that you'd think give me some figures please how much does it cost to save the Amazon forest but 50 billion US okay and anybody else lower higher it costs two billion dollars to save the Amazon fires because you don't need to protect the middle of the Amazon forest you only need to protect the borders right the deforestation happens from outside of the Border to within the border and we've calculated that that area there where we are trying to create this green wall of protection is of around uh give or take around 15 to 20 million hectares at a hundred dollars buying that area for a hundred dollars in the Amazons that's a 1.
5 billion to 2 billion dollar value and once that area is bought and protected we've saved the Amazon because we've created a green wall of protection that number is 0. 1 percent of Brazil's GDP and 0.
