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AAA: Brazil Deforestation Declining

Ethical investment analysis firm, AAA (Alternative Asset Analysis), has welcomed news that the rate of deforestation in Brazil between August 2010 and February 2011 has declined.

Boston, Mass, May 17, 2011 -- Ethical investment analysis firm, AAA (Alternative Asset Analysis), has welcomed news that the rate of deforestation in Brazil between August 2010 and February 2011 has declined.

According to the statistics from the Real Time Deforestation Detection System (DETER) from the National Institute for Space Research (INPE), the deforestation rate fell by 7.8 per cent compared with the same period a year ago.

AAA said it was good news that deforestation fell in all 43 of the regions that are targeting the problem, showing that government measures are working.

“Here at AAA, we are relieved to hear that the measures being brought in by Brazilian officials to try to reduce deforestation are having a significant impact on the problem,” stated AAA’s analyst partner, Anthony Johnson.

Within the Amazon region, deforestation has reduced by an average of 29 per cent in the 36 areas deemed as being major deforesters in 2008.

One of the most important changes brought in by Brazilian government, AAA explained, is the rule preventing businesses using charcoal from native forests in certain regions from obtaining government financial support.

In order to ensure they can still receive government support they must use charcoal only from sustainable, non-native plantations, such as those operated by firms like Greenwood Management. “Firms like Greenwood are on to a winner because they have come along with their teak and acacia plantations just at the right time and are providing a product that the local steel industry desperately needs.”

The new figures also show that the municipality of Querencia will be removed completely from the list of major deforester regions in the Amazon area. Some regions saw their deforestation rates fall by an enormous 77 per cent. However, there was some concern about the figures that showed deforestation in some regions, such as Acre and Tocantins rising by as much as 181 per cent.

The news that deforestation is still growing in some regions has prompted the Brazilian Ministry of Environment to schedule a meeting with the governments from the different states to determine why the problem has worsened in some region. They will also consider why deforestation is now also being seen during rainy season, as well as the dry season.

“Although the results of the DETER survey were mostly positive, it is clear there is still some way to go in reducing deforestation across Brazil. Investing in sustainable, managed plantations can help to provide an alternative for those using the native timber,” concluded Mr Johnson.

AAA said it was good news that deforestation fell in all 43 of the regions that are targeting the problem, showing that government measures are working.

Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-898-6317
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com

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