PacificCarbonTrust.com
Pacific Carbon Trust
Today and Tomorrow:
Carbon Finance in BC Forestry
February 25, 2014
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Carbon Finance – One of the tools
 Carbon Finance builds opportunity in BC forestry by creating a
carbon market framework for proactive, decentralized,
entrepreneurial action.
 Sounds like a fit for the people of the silviculture industry?
 We know BC has significant problem with not-sufficientlyrestocked land. How can we use Carbon Finance to address
this and other forestry issues?
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Pacific Carbon Trust – What we do
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Introduction
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Transitioning into Government April 1
BC Carbon Neutral Government commitment
Creating
Offsets
Offset projects in BC
Ensuring quality offsets
From concept to issuance
Using
Offsets
How offsets are used
1.4 million tonnes of forest carbon 2010-2012
$14 million in 2010-2012, more in 2013+
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International Standards, BC Standards, Portfolio mix
Offset projects must meet BC emission offsets regulation,
and then are evaluated on further selection criteria to
ensure best projects for BC
Ongoing Annual
Demand
750,000+ tonnes
(2012 Carbon Year)
Key Criteria to Consider:
 BC emission offsets regulation
 Portfolio mandate
 Build low-carbon economy (BC/
shareholder value)
 Project economics (bottom up)
 Market economics (top down)
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Tree Planting in the Voluntary Carbon Market
 BC pioneers like ERA Ecosystem Restoration
Associates and others have issued millions of
reforestation offsets into the voluntary carbon
market since 2006.
 Temperate reforestation projects are difficult to
make work using ex-post carbon accounting
method.
 Ex-ante takes a longer view but doesn’t fit within
contemporary annual carbon flux balance. Needs
buyers with broader, and voluntary demands.
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BC Forest Carbon Partnership Program
 MFLNRO program. Aims to restore damaged public forests and
take advantage of the carbon value of our public forests.
 An open competition was tendered. The Prince George-based
Carbon Offset Aggregation Cooperative (COAC) was the
successful bidder. COAC has named their program the TreeGen
Project.
 Goal to encourage and stimulate ecosystem restoration and
reforestation on Crown land while helping restore the carbon
balance of our forests and without costs to taxpayers.
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BC Forest Carbon Partnership Program
 Program was successfully launched May 2013 with the
first 19,000 trees planted on provincial forest land in
Quesnel and Kelowna.
 160,000+ trees will be planted in Fort Nelson in 2014.
Projects may also salvage low value timber for bioenergy.
 COAC is partnering with Tree Canada and other private
corporations to reforest the 1,100 hectare commitment.
 Forests for Tomorrow is expected to restore as much as
300,000 hectares by 2028, leaving 700,000 hectares or
NSR land needing other routes to restoration.
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Offset Project Cycle
Idea
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Offset Credits
Initial
Planning
Formal
planning
Validation
Operation
Emissions
Reduced
Verification
Sell Offsets
PID
Project Plan
Stmt of
Assurance
Monitoring
Project
Report
Stmt of
Assurance
Revenue
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Innovation needed
• Tomorrow’s promise lies in dreaming and deploying new,
innovative uses for the offset tool.
• Can JVs between tree planters and consumer companies monetize
the marketing benefit of new forests, financing the gap between
offset value and planting costs?
• Could the “Sharing Economy” enable everyone who says they want
to help restore the beetlekill to actually do so?
• What are your ideas?
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Let’s grow!
Joseph Pallant
Associate, Business Development
Pacific Carbon Trust
Direct: 250-216-7964
Fax: 250-952-6783
[email protected]
“Building a low-carbon future for
BC.”
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