Carbon Manna(SM)

[ the “micro” Idea Factory ]

David A. Palella, FounderHong Ma, Executive Director

Carbon Manna UnlimitedSan Diego, California

cell: 619-787-5767email: dpalella@gmail.com

www.CarbonManna.org

Entire contents Copyright 25 April & 14 July 2008 & May 2010 by David A. Palella. All rights reserved.

Carbon Manna Unlimited -- defined:• We are a California “C” Corporation -- incorporated with the intent to form a “public charity”• Our 501c3 non-profit petition was filed by Latham & Watkins with the IRS on 16 March 2010• In the meantime, we have qualified for 501c3 status under the umbrella of The Global Giving

Foundation in Washington, DC -- reference: http://www.globalgiving.com

• We are an international “micro” STANDARDS-SETTING ORGANIZATION -- We do not undertake projects overseas. We do not fund projects overseas.

• We are advocates, not implementers. Implementation requires full-time personnel on the ground in each country -- along with allll the expenses and interpersonal drama associated with a local presence

• Because all of the “micro” models invented by Carbon Manna Unlimited are universally-applicable in dozens of countries in the Developing World, trying to undertake projects directly in dozens of countries is highly unrealistic

• Thus, allllll of our “micro” models or systems are open source or freeware and in the public domain. Reference in particular our 300-page blog:

http://carbonmanna.blogspot.com

Just say “No!” to Debt• The Carbon Manna(SM) World is a no-debt zone !

• None of our “micro” models or paradigms require micro debt -- although they are complementary to this earlier idea

• “Microfinance” should grow to mean much more than micro loans. And go beyond obvious things like micro insurance and micro savings. Let’s broaden the definition

• Carbon MannaSM expands the field and includes such concepts as:

micro profit sharingmicro incomemicro equitymicro assetsmicro property rightsmicro empowerment -- in sum -->> micro-freedom (or “Uhuru” in Swahili)

Programs of Carbon Manna Unlimited -- All the first in the World

• The Micro Revolutions Institute(SM) in San Diego, California -- a think tank that will continually develop novel & sustainable “micro” economic and ecological paradigms or systems for the Developing World

http://tinyurl.com/yfna2qc & http://tinyurl.com/y9ll2x3

• The “Micro Sustainability Prizes©” competition -- a worldwide open competition to encourage invention of other sustainable and markets-based micro economic mechanisms that directly benefit the Poor

http://www.prweb.com/releases/2010/01/prweb3459274.htm

• The Funded Chair in Sustainable Philanthropy

• Equity Manna© -- a cell-phone-based system for poor families to facilitate micro-equity investments in stocks & gold (and other hard assets)

http://tinyurl.com/yk5jdpm

• Carbon Manna(SM) System implementation in Kogelo, Kenya, the ancestral hometown of U.S. President Barack Obama

http://tinyurl.com/ydg6nxy

The Micro Revolutions Institute(SM)

• The Micro Revolutions Institute(SM) in San Diego, California -- a think tank that will continually develop novel, sustainable, low-cost micro-economic and micro-ecological paradigms or systems for the Developing World that can be implemented immediately

http://tinyurl.com/yfna2qc & http://tinyurl.com/y9ll2x3

• The Institute will also administer the “Micro Sustainability Prizes©” competition -- the world’s first open competition to encourage the invention of other sustainable and markets-based micro economic mechanisms that directly benefit the Poor.* Only a 1-page Executive Summary is required to enter the competition.* School children worldwide, in particular, are encouraged to enter.* Anyone worldwide may enter, regardless of educational qualifications or socio-economic status.

http://www.prweb.com/releases/2010/01/prweb3459274.htm

• The Institute will endow a Funded Chair in Sustainable Philanthropy in the spirit of a MacArthur Award that is given regardless of educational background or socio-economic status

Carbon Trading Markets --Worldwide Growth• 2009 -- US$ 110 - 140 BB (estimates)

• 2008 -- US$ 126 BB [ World Bank data ]

• 2007 -- US$ 64 BB

Efficient cooking opportunity is at least 400 million tonnes of CO2 equivalent which can be reduced per year

Why not access this huge pool of capital to finance or subsidize purchase of essential products & services for the Poor ?

Or leverage grants ? -- And to directly benefit millions of the Poor?

Carbon Manna Unlimited has invented a cell-phone-based mechanism to easily do this while also:

-- enriching the Poor / Improving family health-- mitigating global climate change-- reducing regional deforestation & desertification, and -- enabling cell-phone-based delivery of services such as telemedicine/telehealth &

tele-education

What is Carbon Manna(SM) ?

A self-funding and cell-phone-based Carbon Micro Offset monetization system based on more efficient cooking methods

Uses SMS (short message service) or text messages sent to an SMS database to claim, track, monetize and audit produced Carbon Micro Offsets

Thousands of bundled micro offsets from an entire project are pre-sold in the European carbon markets 1 year in advance to pay all start-up costs

Individual property rights should extend to one’s own carbon footprint, and individuals should be free to monetize their carbon offsets for the benefit of themselves and their families = “Micro Property Rights”

Carbon Micro Offsets may be easily converted to cash, e-money, cell-phone minutes/airtime, or any other non-inflatable store of value

Self-sustainable, markets-based & scales almost infinitely

The next generation of microfinance -->> Micro PROFIT sharing instead of micro debt

Carbon Manna(SM) = Two Novel Cell-phone-based Microfinance Mechanisms

• Both are based on use of efficient cook stoves and reduced use of non-renewable carbon-based biomass fuels (mainly wood & charcoal):

• (1) the Carbon Micro-PROFIT-Sharing System (CMPSS) -- comprising monetization via cell phone & existing MMT (mobile money transfer) systems of 1,000s of aggregated carbon-micro-offsets pre-sold annually into the European GS-VER market (Gold Standard - Voluntary Emission Reduction market); and

• (2) the Reduced-fuel-expense Micro-SAVINGS Program -- a cell-phone SMS-based (short message service) behavior-modification program that trains families to “bank” or save their daily cash-savings on fuel of 15 - 40 U.S. cents/day (in countries where per capita GDP is US$1/day or less)

Entire contents Copyright 25 April & 14 July 2008 & January 2010 by David A. Palella. All rights reserved.

Negative Health effects from cooking indoors with biomass

Poverty in the Developing World

Major Problems addressed by The Carbon Manna(SM) System

Deforestation & Desertification

(1) The Carbon Micro-PROFIT-Sharing System (CMPSS)

The Carbon Micro-PROFIT-Sharing System -- comprising monetization via cell phone & MMT (mobile money transfer) of 1,000s of aggregated carbon-micro-offsets (produced by efficient cook stoves, solar panels and/or forestry projects) which are pre-sold annually into the European GS-VER market (Gold Standard - Voluntary Emission Reduction market)

After paying major fixed project costs (e.g. the stoves & carbon-markets paperwork), the gross margin from the sale is then shared directly via MMT with the poor families who produced the offsets

Entire contents Copyright 25 April & 14 July 2008 & January 2010 by David A. Palella. All rights reserved.

Cookstove Projects in Africa (1)

Several for-profit carbon project managers in Africa have already successfully started large-scale cookstove projects that include up to 5,000 families.

However, all these for-profit project managers do NOT share any of the revenue from sold credits with the families, sadly.

Carbon Manna(SM) proposes, therefore, to simply overlay a cell-phone/SMS-based claiming, accounting & auditing mechanism on top of new cookstove projects that we start.

Hence, project implementation risk is very low.

The elements of the cell-phone/SMS overlay in the CarbonManna(SM) System are:

(1) 3mice.com’s SMS messaging and SMS dB-management offering. Ref.: http://www.3mice.com– This service can be controlled directly by the local carbon project manager

via a secure web-based console/interface– 3mice.com, based in Nairobi, Kenya, is an approved Premium Rate Service

Provider (PRSP) or VAR (value-added reseller) for SMS services in Kenya

(2) The SMS-based Mobile Money Transfer (MMT) systems of Safaricom (M-Pesa) and Zain (ZAP), among others, can be used to transfer small amounts of cash from sold/produced Carbon Micro Offsets directly to each family in a Carbon Manna project. Transaction fees are reasonable and make small transfers feasible

Cookstove Projects in Africa (2)

Grandma Sarah Obama (Barack Obama’s step-grandmother) in Kogelo, Kenya, Receives the 1st

Carbon Manna(SM) Cookstove (October 2009)

Carbon Manna(SM) -- the McDonald’s of

Micro-PROFIT-Sharing worldwide

Nota bene: The Golden Arches are a registered trademark of McDonald's Corp.

Carbon anna(SM) Unlimited

(2) The Reduced-fuel-expense Micro-SAVINGS Program

The Reduced-fuel-expense Micro-SAVINGS Program --

An SMS-based (short message service) behavior-modification program that trains families to “bank” or save in existing MMT (mobile money transfer) systems their daily cash-savings on fuel of 15 - 40 U.S. cents/day (in countries where per capita GDP is US$1/day or less)

Families receive or buy an inexpensive, efficient stove that reduces their fuel expense by 40+ % per day, leading to the immediate savings above

Advantages: No carbon-markets paperwork is required; can be implemented immediately

Entire contents Copyright 25 April & 14 July 2008 & January 2010 by David A. Palella. All rights reserved.

Reduced-fuel-expense Micro-Savings Program

• The 2nd-largest expense item in the daily budget of urban & suburban poor in Kenya (and most of Sub-Saharan Africa) is fuel, usually wood or charcoal

• However, cooking methods in Kenya (and in most of Sub-Saharan Africa), mainly open-pit fires, are highly inefficient, leading to fuel wastage of up to 50% by almost all families -- and rapid rates of deforestation

• Adoption of efficient cook stoves would therefore lead immediately to daily fuel-cost savings (cash in hand) of 15 - 40 U.S. cents/day or US$ 4.50 - 12.00/month (validated by field studies in Kenya, summer 2009)

• We advocate implementation of an SMS-based behavior-modification program that trains families to bank their daily cash savings on fuel of 15 - 40 U.S. cents/day

Reduced-fuel-expense Micro-Savings Program (cont.)

• Web-accessible broadcast-SMS databases in Kenya are easy to customize and telecom VARs (Value-Added Resellers) sell bulk SMS messages at very low prices

• This large amount of sustainable and daily free cash-flow from fuel savings will fund micro-savings programs, serve to re-pay existing micro-loans, or serve as collateral for new micro-loans

• Each family may "bank" or save its daily cash fuel-savings in the Safaricom M-Pesa or Zain ZAP systems, or use the savings to buy airtime or engage in commerce

Carbon Manna(SM) also provides solutions for Tele-medicine & Tele-education

Carbon Manna will expand the installed base of cell-phones in the Developing World

Carbon Manna provides a strong economic incentive for the Poor to look at and care for their mobile phones

SMS (short message service) can be used to “push” public healthcare messages (vaccine campaign notices) and patient-specific medical messages (“take your HIV medications”) to 1,000s of the Poor at very low cost

Likewise, Carbon Manna-funded handsets may be used for tele-education or micro-education purposes, especially in cases of religious suppression of education (e.g., girls schools in Afghanistan), or where little or no educational infrastructure exists (Sub-Saharan Africa)

One Cell Phone per Child: Even small screens on inexpensive handsets open many educational vistas in math and foreign languages for poor children. One handset per child is indeed an attainable goal, whereas one laptop has proven not to be attainable

Entire contents Copyright 25 April & 14 July 2008 & May 2010 by David A. Palella. All rights reserved.

Equity Manna(SM) -- an example of “micro” innovation

• Equity Manna(SM) = Cell-phone-based purchasing of micro amounts of stocks & ETFs via MMT (mobile money transfer)

• Using existing DRIP plan (Dividend Reinvestment Plan) software that divides shares of stocks or ETFs into 1/10,000ths, any financial instrument can be micronized for a micro-DRIP or a micro-ETF investment plan for the poorest of the Poor

• Using 100 years of stock returns as a guide, the Poor in any country should buy stock in their own national telecom carrier -- viz., in Safaricom (Kenya), PT Telkom Indonesia or China Mobile. Etc.

• Question: Are national lotteries a better asset allocation plan for the Poor in Africa or Asia ? There is a strong inverse correlation between annual income and participation in lotteries and gambling. Which, then, is better ? -- Equity Manna(SM) or games of chance ? Let the Poor decide.

Equity Manna(SM) -- an example of “micro” innovation (cont.)

• One concrete and important example -- even the poorest of the Poor worldwide should be able to own part of the so-called "People's Central Bank" -- the SPDR (Standard & Poor's Depositary Receipt) Gold Trust ETF or GLD on NYSE

• Even poor (and wealthy) Indians have stored their wealth in gold jewelry for centuries. This new idea is merely a modern version of owning physical gold

• At least one gold ETF already trades on the Bombay & National Stock Exchanges in India -- the Kotak Gold ETF (KGEFT), meaning this innovation could be implemented immediately for 100s of millions of the Poor in India

• References: -->> http://finance.yahoo.com/q?s=GLD-->> http://dekadrakma.blogspot.com-->> http://carbonmanna.blogspot.com/2010/02/micro-revolutions-off-wall-street-micro.html-->> http://www.kotakmutual.com/kmw/product/kotak-gold-ETF-funds.htm

Other examples of “micro” innovation?

• Bono's Product (RED)TM is another markets-based micro-mechanism to transfer wealth

• Buy a [ micro] cup of coffee in America and micro-treat AIDS in Africa

• Product (Red)TM is another form of sustainable Micro Profit Sharing

• Participating companies or (Red) partners agree to donate up to 50 % of their profits from co-branded (Red) products to Product (Red)'s partner in Africa, The Global Fund, which uses the money to support HIV / AIDS programs in Africa. (Red) partners include Apple, American Express, Emporio Armani, The Gap, Hallmark, Comverse, Dell, Nike and Starbucks

• Reference: http://www.joinred.com

Other examples of “micro” innovation? (cont.)

• Taxing the betting receipts of the Japan Racing Association (JRA) -- a semi-markets-based means to fund charitable activities in Japan

• "JRA contributes 10% of its turnover to the National Treasury, as well as 50% of any surplus profits remaining at the end of the fiscal year. In fiscal 2007, JRA paid approximately US$ 2,862 million into the National Treasury, the use of which is specified by law: three-quarters must be designated for improvement of livestock breeding and the remaining one-quarter for public or social welfare."

• In short, in 2007 (the latest data available) taxation of betting revenue & profits supplied about US$ 700 million to support charitable organizations in Japan. Thus, every individual bet on a horse in Japan is equivalent to a micro-donation to charity or social programs

• Could more such sin tax-based mechanisms be conceived and used to spread income/donations/wealth more broadly worldwide to elevate the Poor? Certainly.

• References:-->> http://www.jra.go.jp-->> http://japanracing.jp/en/index.html-->> http://japanracing.jp/en/organization/structure.html

In Summary…

• Carbon Manna Unlimited has invented the world’s first sustainable, self-funding and markets-based forms of microfinance in the world

• In April 2009 we applied for a U.S. Patent to document the novelty of our invention of the original Carbon Manna(SM) System in April 2008

• Carbon Manna Unlimited originated the world’s first “Micro Sustainability Prizes©” competition

• We have conceived and described in detail other markets-based world “firsts” including Solar Manna©, Forestry Manna© & Equity Manna©, as well as the Foreign Aid Micro Credit (FAMC)

In Summary… (cont.)

• The Carbon Manna(SM) System is an open source / freeware solution that will eventually scale to 10s of millions of families worldwide and materially improve the standard of living of the Poor in the Developing World

• Various carbon project managers or NGOs worldwide are now planning to incorporate Carbon Manna(SM) principles in projects in:

IndonesiaThe PhilippinesDemocratic Republic of the Congo (DRC)RwandaEthiopiaTanzaniaKenya (and probably in more countries not known to us)

Carbon Manna Unlimited

Carbon Manna(SM) / Carbon Micro-Credits Blog:http://carbonmanna.blogspot.com

Carbon Manna(SM) / Carbon Micro-Credits Groups:

http://www.linkedin.com/e/vgh/1794312/

http://twitter.com/CarbonManna

http://www.facebook.com/group.php?gid=52270598714

Carbon Manna(SM) / Carbon Micro-Credits News Releases:

http://www.marketwire.com/press-release/Carbon-Manna-Unlimited-1033328.html

http://www.marketwire.com/press-release/Carbon-Manna-Unlimited-1007638.html

http://www.marketwire.com/press-release/Carbon-Manna-Unlimited-991442.html

http://www.marketwire.com/press-release/Carbon-Manna-Unlimited-953397.html

David A. Palella       Founder Carbon Manna Unlimited       San Diego, California       cell: 619-787-5767       email:  dpalella@gmail.com

Ms. Hong Ma (M.D., Ph.D., MBA) Executive Director Carbon Manna Unlimited cell: 858-945-0887 email: HongMa2008@gmail.com

http://www.CarbonManna.org

For more information, please contact Carbon Manna HQs in San Diego

Think Different* * “Think Different” is a service mark of Apple Corporation

In sum, we strongly encourage you to…