Carbon Credit Breakdown from 49th Annual Meeting
In 2019, Kootznoowoo, Inc. enrolled in a Carbon Credit offset program that generates significant income for the corporation. The program essentially pays Kootznoowooo for agreeing to not harvest trees on Kootznoowoo land, which also provides a significant benefit to combating climate change. This decision to-date has generated approximately $2.6 million in income.
In the Fall of 2021, the board approved a strategy for how this carbon credit income will be allocated. This strategy is referred to as as the “Carbon Credit Split.” The below pie chart shows the percentages for how each dollar in carbon credit income is being allocated.
50% of every dollar we get in Carbon Credit income, is being put into an investment account that has been set up with Alaska Permanent Capital Management, and is being called the “Administration Permanent Fund.” This Fund will be added to, in coming years, and remain untouched, so that Kootznoowoo can be in a stronger financial position when the anticipated reduction in ANCSA 7j funding takes place, in about 8 years.
10% of every Carbon Credit dollar is going directly into the Kootznoowoo Shareholder’s Permanent Fund Settlement Trust to continue to increase the size of the Trust, so that the shareholder dividends will also continue to increase in future years.
10% of each carbon credit dollar is going into a fund to support our Kootznoowoo Cultural and Educational Foundation. These funds will be used to hire a grant writer and project manager for KCEF to help extend the work of the Foundation.
20% of the Carbon Credit Split is being set aside to help run the corporation’s day-to-day operations and to invest in new business opportunities; and then the final 10% is reserved to pay for upcoming mandatory costs to continue the Carbon Credit program.
Below, the following pie chart (slide) shows the actual dollar amounts that have been able to dedicate to each of these areas to-date. For example, almost $260,000 has already been dedicated to the Permanent Fund Settlement Trust, and another $260,000 to KCEF. Kootznoowoo is committed to making smart choices at how this income is being allocated that focuses on shareholders, strengthening KCEF, and ensuring a stable future for the corporation.