A landmark transaction of certified forest carbon dioxide (CO2) emissions reductions has been completed between the Pacific Forest Trust (PFT) and Natsource Asset Management LLC (Natsource).
Natsource, a leading emissions and renewable energy asset manager, bought 60,000 t of carbon emissions reductions on behalf of its clients from a private forest owner represented by PFT. The emissions reductions were created through sustainable forestry on a permanently conserved property in California. This deal illustrates the significant role that management of existing forests can play in addressing climate change. The transaction is the first commercial delivery of certified emissions reductions under the Forest Protocols adopted last fall by the California Air Resources Board (CARB). The Protocols are the first rigorous governmental accounting standards in the US for climate projects embracing forest management and avoided deforestation, while ensuring emissions reductions are real, permanent, additional and verifiable. “Today marks a significant milestone for the recognition of the real benefits of conserving and managing US forests to enhance their climate contributions,” PFT president Laurie Wayburn said. “Investing in the power of forests to protect our climate is a practical action that can and should be taken now to reduce CO2 in our atmosphere. We are hoping that deals like this will provide policymakers around the world with the confidence they need to ensure that forestry becomes part of the solution to address climate change.” CARB’s leadership in adopting the Forest Protocols is helping to stimulate a new asset class in global GHG emissions markets, validating forests as a cost-effective means to achieve real GHG reductions. The Forest Protocols, which are administered by the non-profit California Climate Action Registry (CCAR), can be used as a model to ensure that forests be used to achieve enduring benefits and become a solution in the fight against climate change. “Until now, forest sequestration has been an untapped asset in the effort to address climate change,” said Jack Cogen, Chief Executive Officer of Natsource. “Forestry can and should be an important part of the portfolio of climate change solutions moving forward. 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. “Natsource participated in this transaction because it complied with California’s rigorous standards, and we believe that this will ensure that the sequestration will provide enduring environmental and economic benefits.” The CO2 emissions reductions purchased by Natsource clients were created by PFT’s Van Eck Forest Project, in Humboldt County, CA, that uses the CO2 storage capabilities of a working redwood forest. Owned by the Fred van Eck Forest Foundation, the 2,200acre forest is permanently protected by a conservation easement. It is managed by the Pacific Forest Trust to increase carbon stores, restore biodiversity and produce sustainable timber supplies. The revenue from the purchase of some of the emissions reductions already generated by this project will help finance the ongoing forest stewardship activities that will enable the forest to remove an estimated 500,000 t more of CO2 from the atmosphere than would otherwise occur over the next 100 years – all while still supplying substantially the same volume of wood products from the property that would have been harvested under conventional management.
Carbon sequestration is enhanced on the Van Eck Forest by preventing business-as-usual logging of all the substantial volume of standing timber on the property and by ensuring that selective harvest practices remove less timber volume than is grown, allowing carbon stores to permanently increase. The project’s emissions reductions are calculated using the scientific accounting standards of the Forest Protocols, based on a detailed inventory of the forest and the effects of management parameters secured by the permanent conservation easement. These calculations have been registered with CCAR after independent third party certification by SGS, the world’s leading inspection, verification, testing and certification company, working with Scientific Certification Systems, the leading US forestry certification company. Project data is available to the public from CCAR. “Dangerous levels of CO2 in our atmosphere are the result of fossil fuel combustion and forest loss,” continued Wayburn. “To successfully stabilise our climate, we must address both sources. Preventing forest loss and increasing net sequestration through projects that meet rigorous standards, such as those in California, can secure lasting emissions reductions.” As the first asset manager to purchase Van Eck Forest emissions reductions, Natsource joins an impressive group of climate leaders that have invested in the power of working forests through the Van Eck Forest Project, including U. S. House Speaker Nancy Pelosi, California Governor Arnold Schwarzenegger, California Assembly Speaker Fabian Nuñez (D) and California Environmental Protection Agency Secretary Linda Adams. “I applaud Natsource for investing in the long-term climate benefits of California’s forests. Natsource’s leadership shows that global capital will flow to projects that meet rigorous international standards reducing emissions of CO2,” commented Mary Nichols, Chairman of the California Air Resources Board, the lead agency for implementing the State’s Global Warming Solutions Act.
