Irish firm suspends deal on carbon credits with Amazonian Indians
A Dublin company has announced it is suspending agreements it has with indigenous tribes in the Amazon forest following legal moves by the Brazilian authorities.
Celestial Green Ventures announced the suspension in the wake of legal action being initiated in Brazil against a deal between Celestial and an indigenous group in the Amazon for the sale of carbon credits from avoided deforestation.
Celestial Green, according to its website, is an “ecosystems conservation company specialising in the development of natural capital conservation projects” in the Amazonia region of Brazil.
The company’s annual return for May 2011 showed its chief executive, Ciaran Kelly, had the largest number of issued shares.
A federal attorney in the Amazon Brazilian state of Rondonia filed a lawsuit on December 11th to cancel a contract which was signed by Celestial and the Awo Xo Hwara indigenous group.
As part of the deal, Celestial was to pay the local group $13 million over 30 years for the rights to carbon credits associated with 260,000 hectares of rainforest.
It is understood this is the first time Brazil has sought to sue entities involved in these type of deals, which are part of a developing market.