climate action reserve project showcase alligator river avoided conversion project car – baaqmd...
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CLIMATE ACTION RESERVE PROJECT SHOWCASE Alligator River Avoided Conversion Project
CAR – BAAQMD California Offsets Workshop Project ShowcaseAugust 8, 2011
CONFIDENTIAL - Subject to NDA2 | Blue Source | A Leading Climate Change Portfolio
About Blue Source
Carbon Credit Portfolio
Leading domestic project development and marketing for over 10 years
100-200M tonne portfolio (function of specs) Have sold over 20M tonnes over the past 10 years Projects sourced from 48 states and most provinces in Canada Net-back structure aligns incentives between Blue Source and
suppliers Federal and state carbon advocacy leadership Developed the first protocols in numerous carbon categories More CAR listed forestry projects than any other developer
Blue Source has built the largest portfolio of North American emission reduction credits and projects.
CONFIDENTIAL - Subject to NDA
Forestry Project Commercialization
Methodology Development or Modification
Forest Carbon Inventory – Design and Implementation
Management Plan
Project Design Document (PDD) Development
Validation
Verification
Registration
Marketing
7 | Blue Source | A Leading Climate Change Portfolio
Blue Source has extensive experience in creating and selling tonnes in the market. Speed, technical knowledge, premium pricing are central to the service offering
CONFIDENTIAL - Subject to NDA
Working Woodlands: Changing Private Forest Outcomes...
vs.
Private Landowner Trends and Challenges• Aging landowners with wave of intergenerational transfer• Lack of forest and estate planning• Disinterested heirs• Ecological + amenity values over income, but…• Harvest without plan or professional assistance• Poor incentives to protect and manage forests sustainably
= Forest parcelization and forest use/cover fragmentation + degraded private forest lands via poor management
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• No up-front, out-of-pocket costs
• Full forest + carbon inventory and assessment
• 10-year FSC management plan and certification
• 100% of FSC-certified wood product revenues
• 50%+ of forest carbon revenues – important new source of annual cash flow
• Inclusion in landscape-scale conservation project designed by TNC
Landowner Benefits
• Focus and protect public/private investments
• Active and engaged landowners
• Repair degraded forests; maintain desired conditions
• Keep working landscapes working and in private ownership
Public Benefits
Blue Source – Nature Conservancy ‘Working Woodlands’ Program
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Alligator River Avoided Conversion Project
Native forest stands consisting of mixed pine and bottomland hardwoods
Pre-sold tonnes to help achieve near term revenue to landowner
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2,750 Acres in Hyde County, NC
Permit to convert to agriculture
Based on anticipated carbon revenue decided to protect forest via easement instead
CONFIDENTIAL - Subject to NDA
Alligator River Avoided Conversion Project
7 | Blue Source | A Leading Climate Change Portfolio
CONFIDENTIAL - Subject to NDA
Alligator River Avoided Conversion Project – Habitat Protection
7 | Blue Source | A Leading Climate Change Portfolio
CONFIDENTIAL - Subject to NDA
Alligator River Avoided Conversion Project
A lot of steps: Designation of Authority Form Project Submittal Form Attestation of Title Boundary Map Signed Easement Inventory Growth Model Monitoring Plan Project Design Document First Verification Project Implementation Agreement Initial Registration of Tonnes Marketing of Project Ongoing monitoring/verification (up to 200 years) Transfer of Tonnes to Buyer
7 | Blue Source | A Leading Climate Change Portfolio
Process to date: Delays in getting definitive guidance
related to soil carbon First-of application of protocol – many
delays but will be a model for others to follow
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Forest Carbon Credit Development Observations
7 | Blue Source | A Leading Climate Change Portfolio
How much uptake on 200 year landowner commitment?
Do the rules keep changing?
Process from listing to registration too long
Mechanics of converting CRTs to ARB compliant offsets
CONFIDENTIAL - Subject to NDA
Thank You!
7 | Blue Source | A Leading Climate Change Portfolio
Roger WilliamsPresidentBlue Source P: 415.399.9101E: [email protected]