Your Forest Carbon Check is in the Mail… (or is it?)

Tom Gaman January 20, 2011

•A brief history of Greenhouse Gases (GHG’s)

•Status of forest carbon accounting

•How to take advantage of the opportunity—the CAR Forest Protocol as an example.

•Questions and Discussion.

What I will cover today…

1606 “The green mantle of the standing pool.” 3.4 King Lear

GHG’s

1771: Joseph Priestley discovers “good air” and “bad air”

“I have fully satisfied myself that air rendered in the highest degree noxious by breathing is restored by sprigs of mint growing in it…” letter to Franklin 7/1/1772

1950’s: Charles Keeling strarts to measure atmospheric CO2 at Mauna Loa Observatory. He observed an increase from 310 to 380 ppm in 2005, over 390 now and headed for 400 ppm. We have in 250 years burned half a trillion tonnes of carbon, and expect to have burned 1 trillion by 2050

GHG’s

NY Times 12/22/10

methane (CH4) in landfills (25 x CO2), melting tundra emissions

Ozone (O3) depleting gases: refrigerants

N2O (exponentially more potent than CO2)

Other potent GHG’s

NY Times 12/22/10

Increased ocean acidityGlobal warmingMelting tundraExtreme weather conditionsRising sea levelsIncreased habitat migration and destructionReduced biodiversityDrought and famine

Etc., etc., etc.

Increasing tree growth?

Consequences of increased GHG’s

In the scientific community it is generally agreed that a “tipping point” is upon us, and there is finally international political agreement on this.

Solutions?Reductions decrease anthropogenic (human related) emissions Offsets increase sequestration (e.g. protect and grow forests)

Do nothing

International Treaties are difficult…•Rio 1992 •Kyoto Protocol 1997•Bush (2001-2009)•Copenhagen Accord 2009 (recognizes forestry contributions)

•Cancun 2010 (agreement on deep cuts, Green Climate Fund)

•Still no US carbon policy. EPA/DOE policies vary, measurement processes are in flux.

•In California carbon reductions are difficult…California Climate Action Registry (CCAR 2001 a voluntary program)

AB32 2006. Requires 20% reduction by 2020, empowers ARB as enforcerClimate Action Reserve (CAR) 2007ARB 2010/2011 Market based solutions (Cap and Trade, voluntary approaches, adopting CAR protocols)

Ongoing evolution of political approaches to emissions reductions

Opportunities for emission reductions in lots of US

industries via registries utilizing “protocols”…

ForestLivestockUrban ForestLandfillConcrete manufactureCoal mine MethaneNitric acidOrganic Waste compostingOrganic waste digestionOzone depleting substances Agriculture

Alphabet soup of terms, protocol and registries.

VCSCCXNYXCARWRAPCARBCDM1406419011Source, reservoir & poolCarbon Credit

AB32ISOANSIABXEPALeakageAnthropogenicPermanenceAdditionality

G Reduction Projects

other GHG Reduction Projects

SolarWindTidal energy

SCS Verification Offerings

Forestry is finally green…

CAR recognizes forestclimate values and environmental benefits. It provides anopportunity for forest and woodland conservation and enhancement, and moneyto keep trees in the woods.

The CAR General Protocol and Forest Protocol provide a transparent set of standards for carbon accounting, verification, monitoring, reductions, removals and exchange

•Tracks CRT’s (“carrots”)

•Evolving – 2005 was v. 1.0. Now in version 3.2

How to take advantage of this opportunity…the CAR Forest

Protocols

Each Forest CRT must be:Part of a Forest Project

RealBeyond business as usual (baseline)PermanentOwnership unambiguousMeasurableVerifiable

A CAR Forest Project•Registered with CAR

•Each project has a start date and requires a 100-year commitment, though a conservation easement is NOT required

•All projects verified by an ANSI/ISO-approved “Verification Body”

•CRT’s only available for forest carbon storage that exceeds the “baseline”

Developing a CAR Forest Project•Initially the Applicant “submits” a project and that project is “listed”

(various forms, “Attestation of Title”)

•Project developer selects a verifier to be approved by CAR, the verifier is not a consultant, is an independent auditor representing the Verification Body

•Project developer creates a Project Design Document (PDD)

•Project developer conducts a forest inventory (or adapts a recent inventory), prepares documents, submits to the verifier.

•Verification process. Verification Body issues a verification opinion

•Project Implementation Agreement (PIA) is signed

•Project is registered. CAR issues CRT’s (w/ serial numbers) to applicant’s online account. Accounts are held by project developers, traders, users and retailers. CRT’s may be developed, bought, sold, and retired.

A CAR Forest Project

3 project types

•Improved Forest Management

•Reforestation

•Avoided conversion

Forest Carbon pools

Mandatory poolsStanding live

Standing Dead

Option poolsShrub layerLying deadDiff / litterSoil borne carbon

Growth and yield Modeling (FVS/Cryptos/Forsee etc.)

CAR Forest Project Development

•An inventory of forest carbon pools with statistical reliability…lower SE, more CRT’s

•A calculation of baseline and “reductions”

•A management plan and 100-year growth model (Cryptos, ForSee, FVS, etc.)

•A spreadsheet and inventory report showing ALL work

CAR Forest Project Development•Must show original inventory and all calculations for verification.

1. GHG Table 6.4 Summary Calculations. 2. Chart Baseline and Growth. 3. Baseline Growth Model Summary. 4. Live Growth and Baseline Model. Appendix A. carbon calculations by speciesAppendix B. 2008 carbon inventory Appendix C. snag/standing dead inventory Appendix D. ForSee output TreeListAppendix E. risk of reversal calculationsAppendix F. The 2008 inventory original data set

CAR Forest Project Development

CAR Forest Project Development•A calculation of baseline and “reductions”

Reductions for this project, most yearsThe project developer will have CRT’$ to $ell.

Reductions are above baseline

CAR Forest Project Development

The Project Development Document absolutely necessary to demonstratecompliance with every detail of the FPP and the Forest Verification Protocol.

•Carefully review both the FPP and the Forest Verification protocol and comply with every word

•Address the details, show your work, do not leave out any required information.

•Make it easy for the verifier to find the required information and to validate it in the field

•Use the aggregation protocol for increased efficiency with smaller holdings

•Provide only the required information

CAR Forest Project & Verification Protocols

•The 3rd party auditor is a critical part of the process

•Kick off meeting

•Document and inventory and calculations review

•Field review and sampling

•NCR’s, NIR’s and OFI’s

•Closing meeting

•VB issues Report and Opinion

CAR Forest Verification Process

Maintain the CAR Forest Project•Annual forms and verification update. New CRT’s are added to account annually. CAR account must be maintained and forms submitted every year.

•New Verification Body each 6 years avoids COI

•New forest inventory update every 12 years.

•Project reversal is a possibility. Fire, risks of conversion, leakage.

Economics of carbon

It requires 2 tonnes of bone dry biomass to account for 1 metric tonne of carbon, and is 3.67 CO2 equivalent tonnes.

A 300 acre project like Arcata City Forest might produce 90K CRT’s over 100 years. Presently CRT’s sell for about $10.

It might cost $30-40K to do the inventory and to get certified and verified. Plus ongoing expenses about$5-6k/year

Do the math.

Forestry is finally green…

…but how green are we?

The memory be green.

…(1.2.2) Hamlet

His nose was as sharp as a pen, and a’ babbled of green fields.

(2.3.17) Henry V

Thank you.

Questions?

Discussion