ABN AMRO and Citigroup say new ecosystem markets are poised to deliver profits and major conservation benefits

Groups today launch first ever comprehensive tracking tool for ecosystem services markets at conference in London - estimated to be worth EUR 45 billion in Europe alone by 2012

The world’s first online information platform for the growing international trade in ecosystem services was launched today with the backing of two of the world’s leading financial institutions, ABN AMRO and Citigroup. The Ecosystem MarketplaceSM, developed by the non-profit conservation group Forest Trends, will provide much-needed transparency for emerging ecosystem markets, including the burgeoning carbon market. The new information platform will be launched today at an ecosystems marketplace conference in London, addressed by Sir Win Bischoff, Chairman of Citigroup Europe and Herman Mulder, Co-Head of Group Risk Management at ABN AMRO. The conference will also be addressed by Sir John Bond, Group Chairman of HSBC. Carbon market transactions have doubled in volume every year from 2001 to 2003, from nearly 13 million tons to more than 70 million tons of CO2 equivalent. Since January this year, the first month of the newly launched European Union Emissions Trading Scheme (EU ETS), 25 million EU allowances have already been traded with an average price of EUR 10 per ton*. ABN AMRO estimates that the total value of the carbon market in Europe alone will be EUR 45 billion by 2012. That includes both market turnover in the EU ETS and the Kyoto Protocol 'flexible mechanisms'. ABN AMRO plans to launch new environmental financial products related to the EU ETS and the climate markets related to the Kyoto Protocol. Richard Burrett, Managing Director of Sustainable Development at ABN AMRO, said: “The rapid growth we’ve seen in carbon markets shows that markets for ecosystem services are viable and have great potential, given the right regulatory environment. In the near future we expect new legislation – both national and global – which will create efficient markets for ecosystem services; our support of the Ecosystem MarketplaceSM demonstrates our commitment to being at the forefront of these exciting developments.” Other ecosystem markets have the potential to expand rapidly in the next decade, including biodiversity, water, and other conservation markets. In the US, wetlands mitigation banking has more than quadrupled in the last decade, with nearly 400 established mitigation banks in 40 states today. Although there are no reliable numbers on the size of the US wetland mitigation market, industry insiders estimate that the market is worth US1 billion per annum and is poised for rapid growth. Ecosystem markets, which have emerged over the last decade, recognize the necessary “services” ecosystems provide – clean air, clean water, climate control, rich soil etc. – and attach an economic value to them. Today, the world has lost almost 3 billion hectares, nearly half, of the forests that once covered the earth. There are 150 permanent or recurring coastal dead zones in seas worldwide. And at current rates of habitat loss, as many as 10 percent of the world’s species could be lost over the next 25 years. Pamela P. Flaherty, Senior Vice President of Global Community Relations at Citigroup, said, “We have no doubt that ecosystem services markets will play an important role in addressing global environmental concerns and will provide significant financial opportunities in the coming decade – for large and small businesses globally and for low-income entrepreneurs. Our support of the Ecosystem MarketplaceSM is in line with our commitment to sustainable development and our long-standing support of micro-enterprises throughout developing countries.” Further demonstrating the growing importance of ecosystems marketplaces to major financial services institutions, Sir John Bond, Group Chairman of HSBC, will address the significance of these new markets for the environment in a speech at today’s launch event in London. “Financial-community backing is critical to the success of ecosystem markets and we applaud the leadership shown today by ABN AMRO, Citigroup and HSBC,” said Michael Jenkins, President of Forest Trends. “The Ecosystem MarketplaceSM will provide much-needed information and transparency that the finance and business community needs in order to understand and take full advantage of ecosystem market opportunities.” The Ecosystem MarketplaceSM contains comprehensive news, regulatory information, market analysis and price tracking, at www.ecosystemmarketplace.com. The Ecosystem MarketplaceSM harvests the knowledge and ingenuity of over 150 worldwide business and environmental experts that comprise the Katoomba Group. This important initiative is being supported by ABN AMRO, Citigroup Foundation, Swiss Re, the UK Department for International Development (DFID) the US Forest Service, the World Conservation Union (IUCN), Conservation International, The Nature Conservancy, Surdna Foundation, the David and Lucile Packard Foundation and others. *Source: PointCarbon, 25 March 2005 - - - A conference call facility is available from 4:15pm BST +44 20 7784 1017 Press enquiries: ABN AMRO Alex Evans +44 20 7678 5111 Citigroup Susan Tether +44 20 7986 5601 (UK) Helen Steblecki +1 718 248 4694 (US) Forest Trends Ann Brown +1 202 537 0093