Transcript Title of Blue Source Presentation 28 Point Verdana Bold

CLIMATE ACTION RESERVE PROJECT SHOWCASE
Alligator River Avoided Conversion Project
CAR – BAAQMD California Offsets Workshop
Project Showcase
August 8, 2011
About Blue Source
Blue Source has
built the largest
portfolio of North
American emission
reduction credits
and projects.
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
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Forestry Project Commercialization
Blue Source has
extensive experience
in creating and
selling tonnes in the
market. Speed,
technical knowledge,
premium pricing are
central to the service
offering
 Methodology Development or Modification
 Forest Carbon Inventory – Design and Implementation
 Management Plan
 Project Design Document (PDD) Development
 Validation
 Verification
 Registration
 Marketing
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Working Woodlands: Changing Private Forest Outcomes...
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
vs.
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Blue Source – Nature Conservancy
‘Working Woodlands’ Program
Landowner Benefits
• 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
Public 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
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Alligator River Avoided Conversion Project
 2,750 Acres in Hyde County, NC
 Permit to convert to agriculture
 Based on anticipated carbon
revenue decided to protect forest
via easement instead
 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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Alligator River Avoided Conversion Project
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Alligator River Avoided Conversion Project – Habitat Protection
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Alligator River Avoided Conversion Project
A lot of steps:
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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
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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
 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
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Thank You!
Roger Williams
President
Blue Source
P: 415.399.9101
E: [email protected]
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