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Plantations, poverty and power - Critical Information Collective

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70<br />

may not be enough for consumers, it is little consolation to the people living near the plantations in<br />

Uruguay.<br />

The chairman of the town council of Guichón reflects the local perception of the way Forestal Oriental<br />

<strong>and</strong> other plantation companies address environmental problems. “To get this famous certification, the<br />

companies leave a pond <strong>and</strong> three ducks <strong>and</strong> then claim that they’re protecting the environment,” he said.<br />

More subsidies through carbon trading<br />

Botnia has received approval under the Kyoto Protocol’s Clean Development Mechanism to further<br />

subsidise its operations in Uruguay through carbon trading. 344 The company argues that by generating<br />

electricity through burning black liquor from the pulping process it will be able to sell 32 MW of<br />

electricity to the state electricity utility, UTE. Botnia argues that this will replace electricity generated<br />

from fossil fuel <strong>and</strong> therefore “the release of greenhouse gases . . . will be reduced.” Botnia does not<br />

explain how it knows that UTE will not use wind or solar energy in the future. In addition, even assuming<br />

some greenhouse gas emissions would be saved, by trading the carbon credits, Botnia ensures that the<br />

emissions will be released somewhere else. Further, the company fails to take into account the<br />

greenhouse gas emissions associated with its operations: carbon loss from soils, building the pulp mill,<br />

fuel consumption by forest machinery, logging trucks, <strong>and</strong> shipping the pulp to China once it has been<br />

produced. 345 Pöyry won the contract from Botnia to produce the CDM project documents, to carry out<br />

“stakeholder consultation” in Latin America <strong>and</strong> to make the arrangements for validation <strong>and</strong> registration<br />

of the project. 346<br />

The millions of dollars of “aid” <strong>and</strong> subsidies to the Botnia pulp mill are benefiting a series of Finnish<br />

companies including Botnia, Andritz Oy, Pöyry <strong>and</strong> Kemira. The pulp produced at the mill will be<br />

exported, along with the profits. The pulp will be shipped to UPM’s Changshu paper mill in China. The<br />

impacts of the industrial tree plantations, like the pollution from the pulp mill, are left in Uruguay.<br />

Botnia’s Managing Director in Uruguay, Ronald M. Beare, says that “Botnia is a great opportunity, both<br />

for Uruguay <strong>and</strong> for the wider region.” 347 But many in Uruguay <strong>and</strong> Argentina disagree with this<br />

assessment. The Uruguayan writer, Eduardo Galeano, describes the development of the pulp industry in<br />

Uruguay as being “in the purest Colonial tradition: vast artificial plantations that they call forests,<br />

converted into pulp in an industrial process that dumps chemical waste into rivers <strong>and</strong> makes the air<br />

impossible to breathe.” 348<br />

http://www.wrm.org.uy/bulletin/108/viewpoint.html#Uruguay<br />

344 “Uruguay: Botnia Clean Development Mechanism Project”, Pulp <strong>and</strong> Paper International, July 2008, page 8.<br />

345 “Uruguay: The Botnia pulp mill project intends to profit from climate change”, World Rainforest Movement Bulletin<br />

109, August 2006. http://www.wrm.org.uy/bulletin/109/Uruguay.html<br />

346 Sari Siitonen (2006) “Innovative Clean Energy Solutions in Practice , Carbon Consultancy <strong>and</strong> Emissions Reductions<br />

”, Pöyry Energy Oy company presentation, Nairobi, 12 November 2006.<br />

347 “View of MD in Uruguay”, Botnia website: http://www.botnia.com/en/default.asppath=204,1490,1496,1636<br />

348 “Uruguay: The Botnia pulp mill project intends to profit from climate change“, World Rainforest Movement Bulletin<br />

109, August 2006. http://www.wrm.org.uy/bulletin/109/Uruguay.html

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