The Presidio 1001-A O’Reilly AvenueSan Francisco, CA 94129www.PacificForest.org 415.561.0700

ON THE COVER: Landowner in Northern California Managing for Climate Benefits Finds New Revenue Can Grow on Trees

Capitalizing on Forest CarbonClimate Benefits from Forests Begin to Bear Financial Fruit

CONVENIENT TRUTHPFT Participates inGore’s Climate Summit

SUPER STEWARDSCalaveras LandownersConserve Sierran Forest

WINNING TICKETConservation ConventionPlanned for Forest Fete ‘08

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Forest Fete 2008 Set for Sept. 18 in San FranciscoChampions Honored at ‘07 Ceremony

Scheduled three months earlier than in the past, Forest Fete 2008 will take place on Thursday, September 18th in San Francisco. The evening will feature a keynote speaker, live music, silent auction and several surprises.

Please save the date and make your plans to attend. Reservations can be made online at www.pacificforest.org/forestfete/forestfete08.html . Speakers, sponsors and honorees will also be listed on this web page as they are announced.

While looking ahead to Forest Fete 2008, we also take this opportunity to look back to Forest Fete 2007.

Generously supported by K&L Gates, Pacific Gas & Electric Company and others, Forest Fete 2007 paid tribute to our Evergreen & Evergiving forests and their champions. Mary Nichols, Chair of the California Air Resources Board, received our Outside-the-Box award for her support of the Forest Protocols. Port Blakely Tree Farms was named Forest Champion of the

Year for their model stewardship of commercial forests in Washington and Oregon. PFT Stewardship Forester Matt Fehrenbacher was named Outstanding Staff Member of the Year.

Terry Tamminen, former Cal-EPA Secretary and leading environmental strategist, gave the keynote address. He praised PFT’s trailblazing Working Forests, Winning Climate program, proclaiming “Nobody is doing more for the climate and the positive role forests can play than the Pacific Forest Trust.”t

L andowners win with woods. iEnvironmentalists win with

woods. Investors win with woods. Scientists, foresters, policymakers, businesses, families and indeed all of us win with the wood, water, wildlife and the well-balanced climate provided by America’s bountiful woodlands.

And so, in this election year, we are pleased to announce that Forest Fete 2008 will be a special “conservation convention” with the theme Everybody Wins with Woods.

Carmen AncinasPort Blakely

Printed on recycled paper

NONPROFIT ORGU.S. POSTAGE PAID

SAN RAFAEL, CAPERMIT NO. 985

The Pacific Forest Trust is a non-profit,501(c)(3) organization dedicated to sustaining

America’s working forests for all their public benefits

ADDRESS SERVICE REQUESTED

CSNM Project Receives Critical Federal FundingFederal funding has been approved to transfer nearly 1,000 acres of biodiverse forestlands now held by the Pacific Forest Trust (PFT) into public ownership for official inclusion in the Cascade-Siskiyou National Monument (CSNM). The lands to be transferred connect with old-growth stands owned by the Bureau of Land Management (BLM) and include a mile of the famed Pacific Crest Trail. BLM will purchase these in-holdings thanks to the support of Oregon’s U.S. Senators Ron Wyden and Gordon Smith, and U.S. House Representative Peter DeFazio, who together helped secure more than $860,000 in federal grants.

“It is great to have the Pacific Forest Trust as a partner in efforts to conserve land within the Monument,” says Senator Wyden. “The Monument’s unique biological diversity needs safeguarding, and a key step is working with the BLM to acquire these important lands so that they will benefit the American people for generations to come.”

PFT’s protection of a mile-long section of the Pacific Crest Trail in the CSNM has also led us to partner with Jeramy Villianos and Serena Becker who are hiking the entire 2,650-mile trail this spring to raise funds for wilderness conservation. PFT will receive a portion of the donations to the duo’s “Walk for Wildlands” effort. Read more about their philanthropic journey at www.walkforwild.org. t

Tebbe & Marckwald Join PFT Board, Rosen to Help Build National NetworkWe are pleased to welcome two new Board members, Gregory Tebbe and Kirk Marckwald. Tebbe recently retired after working for 21 years in Goldman Sachs’ securities division. Marckwald is the founder of California Environmental Associates and former Undersecretary of the California Resources Agency.

Marty Rosen, though no longer on the Board due to term limits, will continue to assist PFT by helping us build our national support network. Rosen, an attorney and former president of the Trust for Public Land, had served on the board since our inception.

After nine years of dedicated service, Misty Gruber has also departed the Board. She will, however, continue to work with us on conservation finance programs. t

Thank YouWe gratefully acknowledge the following donors whose generous financial gifts

and pledges between November 2007 and April 2008 have helped make our work possible

IndividualsMichael & Susan AddisonMaria C. AlexanderJudith E. Ayres & John Burke IIIBill Banzhaf & Adela BackielAlvin Baum, Jr.Don BeatyEldon & Helen BeckCheryl BelcherCynthia BerenMoe & Frances Beren Family FundForrest & Marsha BerkleyJohn BernsteinConstance BestDoug BevingtonSally BinghamLucy Blake & Steve NightingaleLouis Blumberg & Ellen FriedmanMarion A. Boggs III & Clara Thomas BoggsAnthony & Carol BoutardPeter Boyer & Terry GambleAllan & Marilyn BrownMagalen O. BryantJoseph BunkerDonald Miller Campbell Family FundPeggy C. CampbellCharles & Kristine CardallNorman & Portia H. ChristensenMaribeth CollinsTerry & Barbara CollinsCherida Collins Smith & Glenn SmithDave & Linda CoxMichael CummingsHenry & Vergilia DakinPeter Davis & Joan IrwinGwendolyn Dhesi & Nirmal SinghCarl EhlenTheodore & Patricia EliotJames EllisEric FensterJames P. FinertyBetsy & Jesse FinkDwight & Joann FreundJohn FullertonGeorge C. Gaines & Mary MooreLorraine GallardThomas H. & Barbara GamanAlison GeballeThelma & Charles GilmurLaurie R. Gneiding & Michael J. Brady

John K. Graham & Katherine MunroKass Green & Gene ForsburgH. Cort Gross & Mary TrombadoreMisty & Lewis GruberPerry HagensteinHenry & Wells HamiltonDavid Hartwell & Elizabeth DeBautElizabeth HelmholzGary HendrixMaurice & Janice HollowayRobert HrubesBill HuttonJoe KastnerMarianna Kaufman & Diana M. AlemanWilliam W. KeyeRobert & Edie KirkwoodNancy KittlePeter KodzisKate Levinson & Stephen CostaMike LiquoriSamuel & Cindy LivermorePerry & Tricia LloydRuthanne LorentzenDan Luoma & Joyce EberhartEwan MacDonaldKirk Marckwald & Chris DesserDan MartinWilliam & Janet McLennanAmy MeyerDouglas Miller Mark MillerWayne & Joan MillerMartha Nelson & Kristine PetersonKarla NemethJim & Lisa NicolAlicia Nimer Torre & Jonathan B. Nimer Nancy NordhoffJohn & Kari NovatneyEdward O’Brien & Patricia HickeyWilliam P. & Julie ParishPeter & Julie ParkerJudson M. ParsonsAnne PatteeAnne PetersonGeorge Peyton, Jr.Holiday Phelan-Johnson & Christopher JohnsonTimothy & Ulrike Pirrung Donald Putnam & Susann Kellison

Douglass & Katherine Raff James D. RangeBill ReynoldsJim RileyBob RobertsJeff RommMartin & Joan RosenTed RouseLeo RoyTom & Nona RussellSusan & David ScannellBob SchofieldWalter & Jeanne SedgwickGeoffrey SmithLarry & Carla SmithPeter & Nora StentAnn & Ellis StephensAdam SternCharlie SwindellsRobert H. SydnorTimothy & Billie TaylorTerri ThomasGeorge & Anita ThompsonSteve & Renee ThompsonKarie & David ThomsonWilliam Laney Thornton & Pasha Dritt ThorntonEric & Stephanie TileniusFrank Tsai & Frances Reynolds-TsaiRussell Turner & Elva Ortiz-TurnerAndrea & Don TuttleSteve Van Landingham & Matthew O’GradyKirby Walker & Paul DanielsenLaurie A. WayburnCynthia WayburnEdgar WayburnGeorgia WestdahlBill WilkinsonPatrice WinchesterKirke WolfeDelphine Zeuli

Businesses 3DegreesAutodeskThe Campbell GroupThe Collins CompaniesEcohausHancock Timber Resource GroupHarney & Sons Fine TeasK&L GatesLyme Timber CompanyMMA Sustainable Land InvestmentsMendocino Redwood Company

ForestLifeForests for Work. Forests for Life.

The Newsletter of

The Pacific Forest Trust Board of DirectorsWalter Sedgwick, Co-Chair

Timothy N. Taylor, Co-ChairWilliam W. Stelle, Jr., Vice-Chair

Charles Swindells, TreasurerAndrea E. Tuttle, Secretary

Laurie A. Wayburn, PresidentWilliam H. Banzhaf

Constance BestNorman L. Christensen, Jr.

O.H. Perry LloydKirk Marckwald

Timothy B. PirrungJames D. RangeHal SalwasserGregory Tebbe

William Hutton, Counsel

StaffLaurie A. Wayburn, President

Constance Best, Managing DirectorRandall Beren, Communications Director

John Bernstein, VP ConservationAnn Chan, California Policy Director

Sally Ericsson, National Policy RepresentativeMatt Fehrenbacher, Stewardship Forester

Rachel Freund, Conservation AssociateChristine Harrison, Communications Manager

Rachael Katz, Policy AssociatePeter Kodzis, Director of Finance & Admin.

Jessica Neff, Stewardship AssociateSean O’Sullivan, Office/IT ManagerAlex Page, Development Associate

Kevin Raymond, Washington State DirectorJonathan Remucal, Stewardship Manager

Emily Russell-Roy, Policy AssociateNicole Schuetz, Development Associate

Dale Thornburgh, Ph.D., Senior Forester(CA Registered Professional Forester #430)

Steve Van Landingham, Development DirectorMegan Wargo, Conservation Manager

Jolanta Zakrzewski, Accountant

Editors: Randall Beren & Christine HarrisonArt Director: Randall Beren

© 2008 The Pacific Forest Trust. All rights reserved.

Reproduction permitted with attribution.

Mission Point Capital PartnersPacific Gas & Electric CompanyPort Blakely Tree FarmsR&A Investment ForestryTrillium Asset ManagementWM Beaty & Associates

FoundationsBella Vista FoundationCompton FoundationEdwards Mother Earth FoundationJohn & Elaine French Family FoundationRichard & Rhoda Goldman FundHeller Charitable & Educational FundHenry P. Kendall FoundationKongsgaard-Goldman FoundationLinden Trust for ConservationLyndhurst FoundationMerck Family FundGordon & Betty Moore FoundationMoore Charitable FoundationNational Fish and Wildlife FoundationOregon Community FoundationDavid & Lucile Packard FoundationSan Francisco FoundationTown Creek FoundationWilliam C. Kenney Foundation

In-KindAcme Bread CompanyMichael & Jeanne Adams/ Ansel Adams GalleryBack to Earth CateringESRIFrey VineyardsHarney & Sons Fine TeasHayes Street GrillHusch VineyardsJeremiah’s Pick CoffeeJohn Bentley’s RestaurantLagunitas Brewing CompanyMcEvoy RanchNavarro Vineyards and WineryNumi Organic TeaOak Hill FarmRavenswood WinerySaintsbury WinerySan Francisco Hat CompanySan Francisco SymphonySOAR InflatablesSports BasementPeter StentSugar Bowl Ski ResortVeritable Vegetable

MartyRosen

Senator Wyden

2 7

Love Creek Legacy Ensured Leading Family Owners Conserve Calaveras Working Forest

location. The Smith family, in fact, had witnessed an ever-increasing number of subdivisions rising up around their property when, last year, they decided it was time to act. The Smiths entered into a working forest conservation easement (WFCE) agreement with PFT this past December. The voluntary, yet binding, arrangement guarantees Love Creek Forest will forever remain a working forest that delivers wood products, water quality benefits and critical wildlife habitat. Now, the Smiths are considering a forest management plan that also will deliver climate benefits. The Smiths are exploring the possibility of registering the carbon dioxide (CO2) emissions reductions achieved by their excellent forestry with the California Climate Action Registry.

“Not only are we protecting our land from development, we have the opportunity to manage our forest to store more carbon and reduce greenhouse gas emissions,” says Larry Smith, the youngest Smith son and current Love Creek Forest manager. “We may be able to generate additional revenue by practicing a method of sustainable forestry that yields both timber products and climate benefits and we are just now starting to investigate this option.”

The Smiths, who have owned Love Creek Forest for more than 65 years, have long been involved in conservation efforts to protect Calaveras County’s natural resources and public lands. In 1974 for example, Dr. Ben Smith and his wife Dutton – the original Smith family owners and Larry’s parents – were

active in creating the Calaveras Big Trees Association, a volunteer organization dedicated to preserving and promoting Big Trees State Park.

The Smiths generously donated the easement to the Pacific Forest Trust. In doing so, the family was able to take advantage of the expanded federal income tax benefits that were available through the end of 2007 and that currently are being considered for renewal by Congress. The Sierra Nevada Conservancy, an agency of the State of California, funded the project’s transactional costs.

The Smith WFCE is the first conservation agreement completed as part of PFT’s Love Creek Working Forests Project – an ongoing initiative aimed at conserving threatened working forests throughout this vitally important region. t

L ove Creek Forest – a 413-acre imixed-conifer working forest

located outside the town of Arnold in Calaveras County, CA – has been conserved through a partnership with the Pacific Forest Trust (PFT), the Sierra Nevada Conservancy and the Smith family. Love Creek Forest shares its boundaries with two Sierran treasures – Big Trees State Park and Stanislaus National Forest – and has been managed sustainably under the American Tree Farm System.

Private forests adjacent to publicly protected parks are at high risk of being converted to non-forest, residential use due to their desirable

“The working forest conservation easement protects the property forever, but allows flexibility in the way we manage it,” says landowner Larry Smith of the agreement with PFT.

Broadcast NewsPFT Garners High-Profile Media Coverage

The Pacific Forest Trust has attracted unprecedented media coverage

this year with a series of high-profile television, radio, newspaper, magazine and web stories describing our work to protect working forests and promote their climate benefits.

In May, our Van Eck Forest Project was featured on National Public Radio’s (NPR) Weekend Edition in a story that was broadcast worldwide.

The report features an in-the-forest interview with PFT President Laurie Wayburn plus a “guest appearance” by two visiting Northern Spotted Owls. A streaming version of the story can be found online at www.npr.org/templates/story/story.php?storyId=90570215.

An early version of the piece with commentary by international climate consultant and PFT board member Andrea Tuttle ran on KQED’s California Report in April. That version, along with photos of the Van Eck Forest, can be accessed at www.californiareport.org/archive/R804280850.

The radio stories followed on the heels of a special Earth Day story in People magazine featuring PFT founders Laurie Wayburn and Connie Best. A PDF of the full-page story – which depicts Wayburn and Best as “Protectors of the Planet” – can be viewed and downloaded on our website at www.pacificforest.org/news.html.

Also in April, Yahoo! News’ Assignment Earth series ran a video story entitled “Big Trees Fight Global Warming” that features Wayburn discussing Van Eck and forest carbon. The segment is derived from an earlier 2008 story in OnEarth

Magazine and can be viewed via a link found at www.pacificforest.org/news/media.html.

In March, PFT’s climate expertise was featured on PBS’ long-running NewsHour with Jim Lehrer. Laurie Wayburn was interviewed and appears on camera in a segment exploring carbon offset markets. View the video and read the transcript at www.pbs.org/newshour/bb/environment/jan-june08/carbon_03-06.html.

Also in March, the San Diego Union-Tribune ran a story about forests and their ability to hold and store carbon in which it describes PFT’s Van Eck Forest Project as “the most notable” working forest being managed for its climate benefits.

In February, the landmark sale of 60,000 metric tons of emissions reductions from Van Eck to Natsource Asset Management was covered by several prominent media outlets including the Wall Street Journal, Associated Press, Reuters, Bloomberg News and the Sacramento Bee. Read stories from these publications and others at www.pacificforest.org/news/media.html. t

Greener Tea: Harney & Sons

donate 1%John Harney and his sons, Michael and Paul Harney, have been in the business of selling fine teas infused with elegance since 1983. They’ve made many innovations since entering what once was a very traditional industry, adding a wide array of new products and, in the process, making gourmet tea an “everyday luxury.” They’ve also put a green twist on their business model. By joining 1% for the Planet, an alliance of more than 800 companies that give one percent of their sales to environmental causes, Harney & Sons Fine Teas is trying to minimize the net impact their operations have on the planet by supporting organizations committed to sustainability.

“We support groups whose ideals we admire and whose efforts are proving effective,” says Harney. “PFT meets these objectives.”

“We’re in a forested area and our company sells a fair amount in the Pacific states,” adds Harney. “And since we appreciate conservation and innovative climate solutions, PFT has been a great fit for us.” t

TheHarneys

LarrySmith

36

theimarket and pricing for forest emissions reductions projects in the state reflects an evolution from voluntary efforts to those required to comply with the emissions goals set forth under AB 32 legislation.

“Forestry can and should be an important part of the portfolio of climate change solutions moving forward,” says Jack Cogen, Chief Executive Officer of Natsource. “This deal illustrates that when rigorous, clear rules are adopted, these investments can reduce costs for our compliance customers and provide what we believe are attractive investment opportunities.”

“California’s strong standards for forest climate projects are attracting a whole new kind of investment,” notes Connie Best, Managing Director of the Pacific Forest Trust. “This is great news for the environment, for landowners and for the business community. We are working with many landowners who want to help meet the growing demand for high-quality offsets certified under the

Forest Protocols.”

Natsource, the largest purchaser of carbon credits worldwide, and major investment banks such as Goldman Sachs, Merrill Lynch, Citigroup and Morgan Stanley are buying into projects designed to cut greenhouse gas emissions and thereby are helping fuel a global carbon market that researchers at Point

Carbon estimate grew 80 percent, to nearly $64 billion in 2007.

“We’re glad to see the finance and business communities investing in sustainable forestry,” says Derek van Eck, Chairman of the Fred M. van Eck Forest Foundation. “The funds from these carbon transactions help keep working forests like the Van Eck profitable, ensuring economic as well as environmental sustainability.”

The Van Eck Forest is managed by the Pacific Forest Trust to permanently reduce more than 500,000 metric tons of CO2 emissions over a 100-year period. Sales of emissions reductions from the project have been of actual, independently verified, additional carbon stores that have been achieved since the project was initiated in 2004.

Natsource’s purchase of Van Eck ERs is the largest of several recent commercial transactions from the project. Other buyers include Meridian Transportation Resources Western (mtrwestern.com), which purchased 6,000 metric tons of Van Eck ERs to help make its fleet of clean burning vehicles “net carbon negative,” and 3Degrees, which soon will be offering Van Eck ERs to corporations aiming to offset their CO2 emissions (3degreesinc.com).

Two other companies will soon make Van Eck Forest Project offsets available for all to purchase at the retail level. Green Mountain Energy will offer Van Eck ERs to individuals and others via their Be Green Now online store (begreennow.com). Sterling Planet, another carbon neutrality provider, will offer Van Eck ERs as part of a diversified portfolio of carbon offsets (www.sterlingplanet.com). t

Recent sales of the first forest-based iemissions reductions (ERs)

certified under California’s new rules are demonstrating that business, civic and financial leaders are finding real value in the climate benefits delivered by working forests.

In February, global investor Natsource Asset Management purchased 60,000 tons of certified carbon dioxide (CO2) emissions reductions achieved from the Van Eck Forest Project. Owned by the Fred M. van Eck Forest Foundation, the Van Eck Forest is 2,200 acres of working redwood forestlands in Humboldt County, CA that are sustainably managed by the Pacific Forest Trust (PFT) to deliver climate benefits and high-quality timber products. A conservation easement on the property secures the permanence of the climate benefits and the forest itself.

The sale represents an expansion from the initial sales of Van Eck offsets that were acquired by private individuals and elected officials like California Governor Arnold Schwarzenegger, U.S. Speaker of the House Nancy Pelosi and former California Assembly Speaker Fabian Núñez. Now demand for the offsets is primarily coming from commercial interests that are recognizing working forests can deliver true climate benefits – and potentially deliver a return on investment to those seeking early entry into the ever-growing global carbon market.

The demand for certified ERs from the Van Eck Forest by corporate

and institutional investors reflects their confidence in California’s Forest Protocols, a set of rigorous accounting standards used to measure and verify the project’s carbon storage.

Developed for the California Climate Action Registry in a broad-stakeholder process led by PFT, the Forest Protocols were adopted by the California Air Resources Board as one of the first approved, voluntary early-action measures toward meeting the state’s ambitious greenhouse gas reduction goals. The Forest Protocols are the first rigorous governmental accounting standards in the U.S. for climate projects that embrace forest management and avoided deforestation; ensure emissions reductions are real, permanent and additional to what forests already provide; and are verified by an independent, third party.

In anticipation of the launch of California’s regulatory and comprehensive greenhouse

gas reduction program in 2012,iiiii

Cool Climate, Hot Commodity Carbon Banking for Climate Benefits Gains Market Momentum

This spring, PFT assembled a task force of top ecologists and economists to shape a comprehensive strategy to harness the climate benefits of U.S. forests to help fight global warming. Co-sponsored by the Nicholas School of the Environment at Duke University and the Cary Institute for Ecosystem Services, the initial meeting of the group included scientific experts from the two co-sponsors, the U.S. Forest Service, Woods Hole Research Center, Harvard Forest and the universities of Washington, Georgia, Wisconsin and Oregon State. Acknowledging that forest loss and depletion is the second largest cause of CO2 emissions, the group explored core strategies for restoring forest carbon stocks including: reducing forest loss and depletion, restoring former forests, increasing average volume of carbon per acre and providing sustainable energy stocks to substitute for fossil fuels. The need to follow these strategies while restoring forests’ natural resiliency and adaptability also was a key focus. The task force is now collaborating on further research and will later prepare their findings for publication. t

PFT Convenes Climate

Task Force

Al Gore,Green Group & Investors

Seek PFT Insight

In April, PFT President Laurie Wayburn participated in a climate summit led by former Vice President Al Gore and his colleagues from the Alliance for Climate Protection, Generation Investment Management and Kleiner Perkins Caufield & Byers. Wayburn discussed the role forests play in climate change and how to incorporate the power of forest conservation and sustainable management into national climate policies and solutions.

Wayburn also discussed forests and their climate benefits with the Green Group, a coalition of close to 30 national environmental groups active on Capitol Hill that includes the Sierra Club, the Wilderness Society, National Resources Defense Council and the Audubon Society.

In June, Managing Director Connie Best will share PFT’s expertise on forest carbon offset standards and projects speaking at the Carbon Finance North America 2008 conference in New York City and the Timberland Investment Summit in San Francisco. t

AlGoreW

orld

Res

ourc

es In

stitu

te

4 5

theimarket and pricing for forest emissions reductions projects in the state reflects an evolution from voluntary efforts to those required to comply with the emissions goals set forth under AB 32 legislation.

“Forestry can and should be an important part of the portfolio of climate change solutions moving forward,” says Jack Cogen, Chief Executive Officer of Natsource. “This deal illustrates that when rigorous, clear rules are adopted, these investments can reduce costs for our compliance customers and provide what we believe are attractive investment opportunities.”

“California’s strong standards for forest climate projects are attracting a whole new kind of investment,” notes Connie Best, Managing Director of the Pacific Forest Trust. “This is great news for the environment, for landowners and for the business community. We are working with many landowners who want to help meet the growing demand for high-quality offsets certified under the

Forest Protocols.”

Natsource, the largest purchaser of carbon credits worldwide, and major investment banks such as Goldman Sachs, Merrill Lynch, Citigroup and Morgan Stanley are buying into projects designed to cut greenhouse gas emissions and thereby are helping fuel a global carbon market that researchers at Point

Carbon estimate grew 80 percent, to nearly $64 billion in 2007.

“We’re glad to see the finance and business communities investing in sustainable forestry,” says Derek van Eck, Chairman of the Fred M. van Eck Forest Foundation. “The funds from these carbon transactions help keep working forests like the Van Eck profitable, ensuring economic as well as environmental sustainability.”

The Van Eck Forest is managed by the Pacific Forest Trust to permanently reduce more than 500,000 metric tons of CO2 emissions over a 100-year period. Sales of emissions reductions from the project have been of actual, independently verified, additional carbon stores that have been achieved since the project was initiated in 2004.

Natsource’s purchase of Van Eck ERs is the largest of several recent commercial transactions from the project. Other buyers include Meridian Transportation Resources Western (mtrwestern.com), which purchased 6,000 metric tons of Van Eck ERs to help make its fleet of clean burning vehicles “net carbon negative,” and 3Degrees, which soon will be offering Van Eck ERs to corporations aiming to offset their CO2 emissions (3degreesinc.com).

Two other companies will soon make Van Eck Forest Project offsets available for all to purchase at the retail level. Green Mountain Energy will offer Van Eck ERs to individuals and others via their Be Green Now online store (begreennow.com). Sterling Planet, another carbon neutrality provider, will offer Van Eck ERs as part of a diversified portfolio of carbon offsets (www.sterlingplanet.com). t

Recent sales of the first forest-based iemissions reductions (ERs)

certified under California’s new rules are demonstrating that business, civic and financial leaders are finding real value in the climate benefits delivered by working forests.

In February, global investor Natsource Asset Management purchased 60,000 tons of certified carbon dioxide (CO2) emissions reductions achieved from the Van Eck Forest Project. Owned by the Fred M. van Eck Forest Foundation, the Van Eck Forest is 2,200 acres of working redwood forestlands in Humboldt County, CA that are sustainably managed by the Pacific Forest Trust (PFT) to deliver climate benefits and high-quality timber products. A conservation easement on the property secures the permanence of the climate benefits and the forest itself.

The sale represents an expansion from the initial sales of Van Eck offsets that were acquired by private individuals and elected officials like California Governor Arnold Schwarzenegger, U.S. Speaker of the House Nancy Pelosi and former California Assembly Speaker Fabian Núñez. Now demand for the offsets is primarily coming from commercial interests that are recognizing working forests can deliver true climate benefits – and potentially deliver a return on investment to those seeking early entry into the ever-growing global carbon market.

The demand for certified ERs from the Van Eck Forest by corporate

and institutional investors reflects their confidence in California’s Forest Protocols, a set of rigorous accounting standards used to measure and verify the project’s carbon storage.

Developed for the California Climate Action Registry in a broad-stakeholder process led by PFT, the Forest Protocols were adopted by the California Air Resources Board as one of the first approved, voluntary early-action measures toward meeting the state’s ambitious greenhouse gas reduction goals. The Forest Protocols are the first rigorous governmental accounting standards in the U.S. for climate projects that embrace forest management and avoided deforestation; ensure emissions reductions are real, permanent and additional to what forests already provide; and are verified by an independent, third party.

In anticipation of the launch of California’s regulatory and comprehensive greenhouse

gas reduction program in 2012,iiiii

Cool Climate, Hot Commodity Carbon Banking for Climate Benefits Gains Market Momentum

This spring, PFT assembled a task force of top ecologists and economists to shape a comprehensive strategy to harness the climate benefits of U.S. forests to help fight global warming. Co-sponsored by the Nicholas School of the Environment at Duke University and the Cary Institute for Ecosystem Services, the initial meeting of the group included scientific experts from the two co-sponsors, the U.S. Forest Service, Woods Hole Research Center, Harvard Forest and the universities of Washington, Georgia, Wisconsin and Oregon State. Acknowledging that forest loss and depletion is the second largest cause of CO2 emissions, the group explored core strategies for restoring forest carbon stocks including: reducing forest loss and depletion, restoring former forests, increasing average volume of carbon per acre and providing sustainable energy stocks to substitute for fossil fuels. The need to follow these strategies while restoring forests’ natural resiliency and adaptability also was a key focus. The task force is now collaborating on further research and will later prepare their findings for publication. t

PFT Convenes Climate

Task Force

Al Gore,Green Group & Investors

Seek PFT Insight

In April, PFT President Laurie Wayburn participated in a climate summit led by former Vice President Al Gore and his colleagues from the Alliance for Climate Protection, Generation Investment Management and Kleiner Perkins Caufield & Byers. Wayburn discussed the role forests play in climate change and how to incorporate the power of forest conservation and sustainable management into national climate policies and solutions.

Wayburn also discussed forests and their climate benefits with the Green Group, a coalition of close to 30 national environmental groups active on Capitol Hill that includes the Sierra Club, the Wilderness Society, National Resources Defense Council and the Audubon Society.

In June, Managing Director Connie Best will share PFT’s expertise on forest carbon offset standards and projects speaking at the Carbon Finance North America 2008 conference in New York City and the Timberland Investment Summit in San Francisco. t

AlGoreW

orld

Res

ourc

es In

stitu

te

4 5

Love Creek Legacy Ensured Leading Family Owners Conserve Calaveras Working Forest

location. The Smith family, in fact, had witnessed an ever-increasing number of subdivisions rising up around their property when, last year, they decided it was time to act. The Smiths entered into a working forest conservation easement (WFCE) agreement with PFT this past December. The voluntary, yet binding, arrangement guarantees Love Creek Forest will forever remain a working forest that delivers wood products, water quality benefits and critical wildlife habitat. Now, the Smiths are considering a forest management plan that also will deliver climate benefits. The Smiths are exploring the possibility of registering the carbon dioxide (CO2) emissions reductions achieved by their excellent forestry with the California Climate Action Registry.

“Not only are we protecting our land from development, we have the opportunity to manage our forest to store more carbon and reduce greenhouse gas emissions,” says Larry Smith, the youngest Smith son and current Love Creek Forest manager. “We may be able to generate additional revenue by practicing a method of sustainable forestry that yields both timber products and climate benefits and we are just now starting to investigate this option.”

The Smiths, who have owned Love Creek Forest for more than 65 years, have long been involved in conservation efforts to protect Calaveras County’s natural resources and public lands. In 1974 for example, Dr. Ben Smith and his wife Dutton – the original Smith family owners and Larry’s parents – were

active in creating the Calaveras Big Trees Association, a volunteer organization dedicated to preserving and promoting Big Trees State Park.

The Smiths generously donated the easement to the Pacific Forest Trust. In doing so, the family was able to take advantage of the expanded federal income tax benefits that were available through the end of 2007 and that currently are being considered for renewal by Congress. The Sierra Nevada Conservancy, an agency of the State of California, funded the project’s transactional costs.

The Smith WFCE is the first conservation agreement completed as part of PFT’s Love Creek Working Forests Project – an ongoing initiative aimed at conserving threatened working forests throughout this vitally important region. t

L ove Creek Forest – a 413-acre imixed-conifer working forest

located outside the town of Arnold in Calaveras County, CA – has been conserved through a partnership with the Pacific Forest Trust (PFT), the Sierra Nevada Conservancy and the Smith family. Love Creek Forest shares its boundaries with two Sierran treasures – Big Trees State Park and Stanislaus National Forest – and has been managed sustainably under the American Tree Farm System.

Private forests adjacent to publicly protected parks are at high risk of being converted to non-forest, residential use due to their desirable

“The working forest conservation easement protects the property forever, but allows flexibility in the way we manage it,” says landowner Larry Smith of the agreement with PFT.

Broadcast NewsPFT Garners High-Profile Media Coverage

The Pacific Forest Trust has attracted unprecedented media coverage

this year with a series of high-profile television, radio, newspaper, magazine and web stories describing our work to protect working forests and promote their climate benefits.

In May, our Van Eck Forest Project was featured on National Public Radio’s (NPR) Weekend Edition in a story that was broadcast worldwide.

The report features an in-the-forest interview with PFT President Laurie Wayburn plus a “guest appearance” by two visiting Northern Spotted Owls. A streaming version of the story can be found online at www.npr.org/templates/story/story.php?storyId=90570215.

An early version of the piece with commentary by international climate consultant and PFT board member Andrea Tuttle ran on KQED’s California Report in April. That version, along with photos of the Van Eck Forest, can be accessed at www.californiareport.org/archive/R804280850.

The radio stories followed on the heels of a special Earth Day story in People magazine featuring PFT founders Laurie Wayburn and Connie Best. A PDF of the full-page story – which depicts Wayburn and Best as “Protectors of the Planet” – can be viewed and downloaded on our website at www.pacificforest.org/news.html.

Also in April, Yahoo! News’ Assignment Earth series ran a video story entitled “Big Trees Fight Global Warming” that features Wayburn discussing Van Eck and forest carbon. The segment is derived from an earlier 2008 story in OnEarth

Magazine and can be viewed via a link found at www.pacificforest.org/news/media.html.

In March, PFT’s climate expertise was featured on PBS’ long-running NewsHour with Jim Lehrer. Laurie Wayburn was interviewed and appears on camera in a segment exploring carbon offset markets. View the video and read the transcript at www.pbs.org/newshour/bb/environment/jan-june08/carbon_03-06.html.

Also in March, the San Diego Union-Tribune ran a story about forests and their ability to hold and store carbon in which it describes PFT’s Van Eck Forest Project as “the most notable” working forest being managed for its climate benefits.

In February, the landmark sale of 60,000 metric tons of emissions reductions from Van Eck to Natsource Asset Management was covered by several prominent media outlets including the Wall Street Journal, Associated Press, Reuters, Bloomberg News and the Sacramento Bee. Read stories from these publications and others at www.pacificforest.org/news/media.html. t

Greener Tea: Harney & Sons

donate 1%John Harney and his sons, Michael and Paul Harney, have been in the business of selling fine teas infused with elegance since 1983. They’ve made many innovations since entering what once was a very traditional industry, adding a wide array of new products and, in the process, making gourmet tea an “everyday luxury.” They’ve also put a green twist on their business model. By joining 1% for the Planet, an alliance of more than 800 companies that give one percent of their sales to environmental causes, Harney & Sons Fine Teas is trying to minimize the net impact their operations have on the planet by supporting organizations committed to sustainability.

“We support groups whose ideals we admire and whose efforts are proving effective,” says Harney. “PFT meets these objectives.”

“We’re in a forested area and our company sells a fair amount in the Pacific states,” adds Harney. “And since we appreciate conservation and innovative climate solutions, PFT has been a great fit for us.” t

TheHarneys

LarrySmith

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CSNM Project Receives Critical Federal FundingFederal funding has been approved to transfer nearly 1,000 acres of biodiverse forestlands now held by the Pacific Forest Trust (PFT) into public ownership for official inclusion in the Cascade-Siskiyou National Monument (CSNM). The lands to be transferred connect with old-growth stands owned by the Bureau of Land Management (BLM) and include a mile of the famed Pacific Crest Trail. BLM will purchase these in-holdings thanks to the support of Oregon’s U.S. Senators Ron Wyden and Gordon Smith, and U.S. House Representative Peter DeFazio, who together helped secure more than $860,000 in federal grants.

“It is great to have the Pacific Forest Trust as a partner in efforts to conserve land within the Monument,” says Senator Wyden. “The Monument’s unique biological diversity needs safeguarding, and a key step is working with the BLM to acquire these important lands so that they will benefit the American people for generations to come.”

PFT’s protection of a mile-long section of the Pacific Crest Trail in the CSNM has also led us to partner with Jeramy Villianos and Serena Becker who are hiking the entire 2,650-mile trail this spring to raise funds for wilderness conservation. PFT will receive a portion of the donations to the duo’s “Walk for Wildlands” effort. Read more about their philanthropic journey at www.walkforwild.org. t

Tebbe & Marckwald Join PFT Board, Rosen to Help Build National NetworkWe are pleased to welcome two new Board members, Gregory Tebbe and Kirk Marckwald. Tebbe recently retired after working for 21 years in Goldman Sachs’ securities division. Marckwald is the founder of California Environmental Associates and former Undersecretary of the California Resources Agency.

Marty Rosen, though no longer on the Board due to term limits, will continue to assist PFT by helping us build our national support network. Rosen, an attorney and former president of the Trust for Public Land, had served on the board since our inception.

After nine years of dedicated service, Misty Gruber has also departed the Board. She will, however, continue to work with us on conservation finance programs. t

Thank YouWe gratefully acknowledge the following donors whose generous financial gifts

and pledges between November 2007 and April 2008 have helped make our work possible

IndividualsMichael & Susan AddisonMaria C. AlexanderJudith E. Ayres & John Burke IIIBill Banzhaf & Adela BackielAlvin Baum, Jr.Don BeatyEldon & Helen BeckCheryl BelcherCynthia BerenMoe & Frances Beren Family FundForrest & Marsha BerkleyJohn BernsteinConstance BestDoug BevingtonSally BinghamLucy Blake & Steve NightingaleLouis Blumberg & Ellen FriedmanMarion A. Boggs III & Clara Thomas BoggsAnthony & Carol BoutardPeter Boyer & Terry GambleAllan & Marilyn BrownMagalen O. BryantJoseph BunkerDonald Miller Campbell Family FundPeggy C. CampbellCharles & Kristine CardallNorman & Portia H. ChristensenMaribeth CollinsTerry & Barbara CollinsCherida Collins Smith & Glenn SmithDave & Linda CoxMichael CummingsHenry & Vergilia DakinPeter Davis & Joan IrwinGwendolyn Dhesi & Nirmal SinghCarl EhlenTheodore & Patricia EliotJames EllisEric FensterJames P. FinertyBetsy & Jesse FinkDwight & Joann FreundJohn FullertonGeorge C. Gaines & Mary MooreLorraine GallardThomas H. & Barbara GamanAlison GeballeThelma & Charles GilmurLaurie R. Gneiding & Michael J. Brady

John K. Graham & Katherine MunroKass Green & Gene ForsburgH. Cort Gross & Mary TrombadoreMisty & Lewis GruberPerry HagensteinHenry & Wells HamiltonDavid Hartwell & Elizabeth DeBautElizabeth HelmholzGary HendrixMaurice & Janice HollowayRobert HrubesBill HuttonJoe KastnerMarianna Kaufman & Diana M. AlemanWilliam W. KeyeRobert & Edie KirkwoodNancy KittlePeter KodzisKate Levinson & Stephen CostaMike LiquoriSamuel & Cindy LivermorePerry & Tricia LloydRuthanne LorentzenDan Luoma & Joyce EberhartEwan MacDonaldKirk Marckwald & Chris DesserDan MartinWilliam & Janet McLennanAmy MeyerDouglas Miller Mark MillerWayne & Joan MillerMartha Nelson & Kristine PetersonKarla NemethJim & Lisa NicolAlicia Nimer Torre & Jonathan B. Nimer Nancy NordhoffJohn & Kari NovatneyEdward O’Brien & Patricia HickeyWilliam P. & Julie ParishPeter & Julie ParkerJudson M. ParsonsAnne PatteeAnne PetersonGeorge Peyton, Jr.Holiday Phelan-Johnson & Christopher JohnsonTimothy & Ulrike Pirrung Donald Putnam & Susann Kellison

Douglass & Katherine Raff James D. RangeBill ReynoldsJim RileyBob RobertsJeff RommMartin & Joan RosenTed RouseLeo RoyTom & Nona RussellSusan & David ScannellBob SchofieldWalter & Jeanne SedgwickGeoffrey SmithLarry & Carla SmithPeter & Nora StentAnn & Ellis StephensAdam SternCharlie SwindellsRobert H. SydnorTimothy & Billie TaylorTerri ThomasGeorge & Anita ThompsonSteve & Renee ThompsonKarie & David ThomsonWilliam Laney Thornton & Pasha Dritt ThorntonEric & Stephanie TileniusFrank Tsai & Frances Reynolds-TsaiRussell Turner & Elva Ortiz-TurnerAndrea & Don TuttleSteve Van Landingham & Matthew O’GradyKirby Walker & Paul DanielsenLaurie A. WayburnCynthia WayburnEdgar WayburnGeorgia WestdahlBill WilkinsonPatrice WinchesterKirke WolfeDelphine Zeuli

Businesses 3DegreesAutodeskThe Campbell GroupThe Collins CompaniesEcohausHancock Timber Resource GroupHarney & Sons Fine TeasK&L GatesLyme Timber CompanyMMA Sustainable Land InvestmentsMendocino Redwood Company

ForestLifeForests for Work. Forests for Life.

The Newsletter of

The Pacific Forest Trust Board of DirectorsWalter Sedgwick, Co-Chair

Timothy N. Taylor, Co-ChairWilliam W. Stelle, Jr., Vice-Chair

Charles Swindells, TreasurerAndrea E. Tuttle, Secretary

Laurie A. Wayburn, PresidentWilliam H. Banzhaf

Constance BestNorman L. Christensen, Jr.

O.H. Perry LloydKirk Marckwald

Timothy B. PirrungJames D. RangeHal SalwasserGregory Tebbe

William Hutton, Counsel

StaffLaurie A. Wayburn, President

Constance Best, Managing DirectorRandall Beren, Communications Director

John Bernstein, VP ConservationAnn Chan, California Policy Director

Sally Ericsson, National Policy RepresentativeMatt Fehrenbacher, Stewardship Forester

Rachel Freund, Conservation AssociateChristine Harrison, Communications Manager

Rachael Katz, Policy AssociatePeter Kodzis, Director of Finance & Admin.

Jessica Neff, Stewardship AssociateSean O’Sullivan, Office/IT ManagerAlex Page, Development Associate

Kevin Raymond, Washington State DirectorJonathan Remucal, Stewardship Manager

Emily Russell-Roy, Policy AssociateNicole Schuetz, Development Associate

Dale Thornburgh, Ph.D., Senior Forester(CA Registered Professional Forester #430)

Steve Van Landingham, Development DirectorMegan Wargo, Conservation Manager

Jolanta Zakrzewski, Accountant

Editors: Randall Beren & Christine HarrisonArt Director: Randall Beren

© 2008 The Pacific Forest Trust. All rights reserved.

Reproduction permitted with attribution.

Mission Point Capital PartnersPacific Gas & Electric CompanyPort Blakely Tree FarmsR&A Investment ForestryTrillium Asset ManagementWM Beaty & Associates

FoundationsBella Vista FoundationCompton FoundationEdwards Mother Earth FoundationJohn & Elaine French Family FoundationRichard & Rhoda Goldman FundHeller Charitable & Educational FundHenry P. Kendall FoundationKongsgaard-Goldman FoundationLinden Trust for ConservationLyndhurst FoundationMerck Family FundGordon & Betty Moore FoundationMoore Charitable FoundationNational Fish and Wildlife FoundationOregon Community FoundationDavid & Lucile Packard FoundationSan Francisco FoundationTown Creek FoundationWilliam C. Kenney Foundation

In-KindAcme Bread CompanyMichael & Jeanne Adams/ Ansel Adams GalleryBack to Earth CateringESRIFrey VineyardsHarney & Sons Fine TeasHayes Street GrillHusch VineyardsJeremiah’s Pick CoffeeJohn Bentley’s RestaurantLagunitas Brewing CompanyMcEvoy RanchNavarro Vineyards and WineryNumi Organic TeaOak Hill FarmRavenswood WinerySaintsbury WinerySan Francisco Hat CompanySan Francisco SymphonySOAR InflatablesSports BasementPeter StentSugar Bowl Ski ResortVeritable Vegetable

MartyRosen

Senator Wyden

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The Presidio 1001-A O’Reilly AvenueSan Francisco, CA 94129www.PacificForest.org 415.561.0700

ON THE COVER: Landowner in Northern California Managing for Climate Benefits Finds New Revenue Can Grow on Trees

Capitalizing on Forest CarbonClimate Benefits from Forests Begin to Bear Financial Fruit

CONVENIENT TRUTHPFT Participates inGore’s Climate Summit

SUPER STEWARDSCalaveras LandownersConserve Sierran Forest

WINNING TICKETConservation ConventionPlanned for Forest Fete ‘08

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Forest Fete 2008 Set for Sept. 18 in San FranciscoChampions Honored at ‘07 Ceremony

Scheduled three months earlier than in the past, Forest Fete 2008 will take place on Thursday, September 18th in San Francisco. The evening will feature a keynote speaker, live music, silent auction and several surprises.

Please save the date and make your plans to attend. Reservations can be made online at www.pacificforest.org/forestfete/forestfete08.html . Speakers, sponsors and honorees will also be listed on this web page as they are announced.

While looking ahead to Forest Fete 2008, we also take this opportunity to look back to Forest Fete 2007.

Generously supported by K&L Gates, Pacific Gas & Electric Company and others, Forest Fete 2007 paid tribute to our Evergreen & Evergiving forests and their champions. Mary Nichols, Chair of the California Air Resources Board, received our Outside-the-Box award for her support of the Forest Protocols. Port Blakely Tree Farms was named Forest Champion of the

Year for their model stewardship of commercial forests in Washington and Oregon. PFT Stewardship Forester Matt Fehrenbacher was named Outstanding Staff Member of the Year.

Terry Tamminen, former Cal-EPA Secretary and leading environmental strategist, gave the keynote address. He praised PFT’s trailblazing Working Forests, Winning Climate program, proclaiming “Nobody is doing more for the climate and the positive role forests can play than the Pacific Forest Trust.”t

L andowners win with woods. iEnvironmentalists win with

woods. Investors win with woods. Scientists, foresters, policymakers, businesses, families and indeed all of us win with the wood, water, wildlife and the well-balanced climate provided by America’s bountiful woodlands.

And so, in this election year, we are pleased to announce that Forest Fete 2008 will be a special “conservation convention” with the theme Everybody Wins with Woods.

Carmen AncinasPort Blakely

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The Pacific Forest Trust is a non-profit,501(c)(3) organization dedicated to sustaining

America’s working forests for all their public benefits

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