Carbon Sequestration:
Michigan Forestry Carbon Project
Presentation to:
The USDA Forest Service
Landowner Assistance Meeting
Charleston, SC
October 5, 2006
Presentation Overview
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About the Delta Institute
Illinois Conservation Climate Initiative
Michigan Forestry Projects
– Activities
– Opportunities
– Benefits
About the Delta Institute
The Delta Institute is a Chicago-based non-profit
organization promoting environmental quality and
community development in the Great Lakes region
• Aggregator for carbon offset credits
• Trade carbon credits
• Reimburse project owners
• Technical assistance for verification and carbon
baseline development
About the Chicago Climate Exchange
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Voluntary, legally binding.
Cap and trade. Members reduce emissions and/or buy credits
Members include: Ford Motor Company, City of Chicago, Waste
Management.
Reduce GHG emissions 4% between 2003 and 2005 and an
additional 2% between 2006 and 2010. Members joining after 2005
agree to reduce GHG emissions by 6% between 2006 and 2010.
Since its inception in 2003, 19,160,680 metric tons of CO2 reduced 8% overall reduction.
110
245
31
30
29
22
22
19
Denmark
Slovakia
Hungary
Sweden
Ireland
Estonia
4
3
Luxemborg
9
Latvia
Slovenia
400
11
33
Austria
130
151
300
Included emisisons
Lithuania
37
Portugal
45
56
New South Wales
Finland
60
94
86
71
Belgium
Greece
The Netherlands
Czech Republic
California
US NE States
(RGGI)
France
Spain
232
0
Italy
100
237
171
200
Poland
United Kingdom
250
300
CCX
Canada
496
500
Germany
Hundred Million Metric tons CO2
Size of Live, Emerging, Possible GHG Markets
Live Market
Market in development
Under discussion
On hold
ICCI Acreage Enrolled To-Date
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Total acreage enrolled- 62,200 acres
– 53,000 acres in conservation tillage
– 6,060 in CRP/CREP grassland
– 3,100 acres in CREP trees
For the 2005 and 2006 verification years we will likely
return over $231,000 to the agricultural community (with
carbon selling at approximately $4.00/metric ton)
Michigan Forestry Carbon Offset
Program: Primary Objectives
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Develop a carbon forestry program that can become
integrated into the Michigan Forest Stewardship
Program or other forest management programs
Develop a revolving technical assistance fund to
promote participation
Provide a niche for working forests and small managed
forests within the carbon markets
Michigan Forestry Carbon Offset
Program: Activities
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Recruit participants
Contracting and enrollment
Revolving technical assistance pool
Trading and payment
Expansion and transfer
Michigan Forestry Carbon Offset
Program: Opportunities
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10 to 13 million acres of private forested land in Michigan
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Aforestation/Reforestation (e.g. CREP, working forests)
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Typical parcel sizes range between 100 and 400 acres
Current CCX market value of $4.00/metric ton carbon
3 to 5 metric of metric tons of carbon per acre
Average yearly return to landowner $1,200 to $4,800
Non-industrial private forest land (e.g. working forests;
plantations)
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Planted before 1990
Average carbon sequestration rate of approximately 3 metric
tons/acre
Average yearly return to landowner $600 to $2,400
Michigan Forestry Carbon Offset
Program: Expected returns to the NIFL
Expected Annual Net
Revenue Returned to
Landowners ($4.00 per metric
ton)
Enrolled acres
CO2 Offset (3 metric
tons per acre)
25,000
75,000
$265,500
50,000
150,000
$531,000
100,000
300,000
$1,062,000
150,000
450,000
$1,593,000
200,000
600,000
$2,124,000
300,000
900,000
$3,186,000
500,000
1,500,000
$5,310,000
Notes:
•Revenue includes CCX transaction fee and 8% aggregation fee
•Revenue is based on an average carbon sequestration rate of 3 metric tons per
acre
Michigan Forestry Program: Benefits
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Strengthen Michigan’s forestry programs
Provide an incentive to landowners for sustainable forest
management thereby potentially increasing the acreage
being managed under Forestry Stewardship Plans
Return revenue to private landowners providing an
incentive for retention of forested lands and/or limiting
fragmentation
Strengthen the role of Michigan conservation districts
and forestry professionals
Contact Information
Abigail Corso
Delta Institute
Delta P2/E2 Center
312-554-0900 ext. 25
[email protected]
Tim Brown
Delta Institute
Delta P2/E2 Center
312-554-0900 ext. 13
[email protected]
www.delta-institute.org
www.p2e2center.org