Canada’s Action Plan 2000 illustrates that Canada will be required to reduce its greenhouse emissions by approximately 195 mega tonnes per year to meet its Kyoto commitment.  This 195 mega tonnes of CO2 at a trading price of $6 to $45 per tonne represents a market value per year of $1.17 billion to $8.78 billion.  In a recently released report, the National Round Table on the Environment and the Economy, an independent advisory body to the minister of the environment, says Canada must put a price on carbon if this country is serious about meeting its medium and long term goals for reducing its greenhouse gas emissions.

The high cost of natural gas is prompting some electricity producers to look at other, less clean fuels such as coal, to power their generators.  There is a tug-of-war between affordable energy supplies and environmental concerns.  The Kyoto Protocol of 1997 calls for a 6% global reduction in greenhouse gas emissions from 1990 levels by 2010. According to the World Bank the value of trading in permits and Carbon Emission credits exceeded US $30 billion in 2006 and more than 1.6 billion tonnes.

IBK Capital advised Pelangio Mines Inc. to fund a 66% interest in a joint venture with Mikro-Tek Inc. for the creation and marketing of greenhouse gas emission offset credits. Mikro-Tek is a private biotechnology company located in Ontario that produces and distributes microbial cultures of specific mycorrhizal fungi that enhance the survival and growth of plants and trees.  Mikro-Tek has developed specific cultures of mycorrhizal fungi for inoculation of the boreal forest.  The mycorrhizal inoculation of forestry seedlings has been shown to increase tree growth by an average of 20% to 30%, depending on species.  This additional growth carries a corresponding increase in carbon sequestration as a direct result of the inoculations.