The Carbon Economy and Forestry Professionals. College of Alberta Professional Foresters 2011 Annual General Meeting Milo Mihajlovich, RPF

Transcription

1 The Carbon Economy and Forestry Professionals College of Alberta Professional Foresters 2011 Annual General Meeting Milo Mihajlovich, RPF

2 Introduction Do foresters and forestry have a place in the carbon economy? A quick overview of the carbon economy Some understanding of the expectations of the carbon economy Where foresters might fit MMM CAPF AGM 2

3 What is the Carbon Economy Economic solution to climate change or An essential bridge to transformative change or Mechanism for large economies to manage world trade or Greenwash to obscure ever increasing emissions or The biggest bubble since sub prime mortgages MMM CAPF AGM 3

4 What is the Carbon Economy All of the above Emission offsets are necessary to incent change and bridge to substantial long term reductions in emissions. Numerous corporations sell green packages or personal offsets that are entirely bogus. The same people who brought us sub prime mortgages gave us the Chicago Climate Exchange MMM CAPF AGM 4

5 The Carbon Economy Offsets Are not: Biological phenomena Intrinsic to forests They are financial instruments reflecting a commitment by the actor to store carbon in trees on behalf of an emitter MMM CAPF AGM 5

6 The Carbon Economy Compliance and robust voluntary markets focus on: Transparency Ownership Verifiability Additionality Conservativeness Avoiding leakage Assurance against reversal MMM CAPF AGM 6

7 The Carbon Economy Meeting the carbon economy requirement for additionality poses a direct challenge to the forestry paradigm of better growth = more allowable cut. New paradigm is Cut or Carbon. A significant challenge to biological capture as a vehicle to forestmanagement derived offsets MMM CAPF AGM 7

8 The Carbon Economy Verifiability +/ 5% 95% of the time Recent quantification 1600 ha Tolerant hardwood forest 305 BAF 2 m prism plots +/ 4.4% MMM CAPF AGM 8

9 The Carbon Economy What a voluntary market can look like Chicago Climate Exchange Or how do you spell BUBBLE?!? MMM CAPF AGM 9

10 The Carbon Economy Reversal is an enormous concern One big fire year can overwhelm all other greenhouse gas emissions in Canada (27 Mt) Who would be accountable for supporting the offsets extinguished by such an event MMM CAPF AGM 10

11 The Carbon Economy Compliance markets Regulators allow emitters to use offsets to meet emission targets AB requires Specified Large Emitters to pay $15/tonne above target into the Technology Development fund or apply offsets Offsets are certified and serialized under protocols approved by AB Environment MMM CAPF AGM 11

12 The Carbon Economy Operations on publicly owned land pose a challenge to accrual of emission offsets from forest management: Ownership Crown, tenure holder, actor Reversibility especially in the face of subsequent disturbance MMM CAPF AGM 12

13 The Role of Foresters Varies between voluntary and compliance markets Voluntary markets vary with focus/emphasis of originating entity Compliance markets generally require some form of professional sign off and likely verification MMM CAPF AGM 13

14 The Role of Foresters AB 18(1) A person is eligible to be a third party auditor under this Regulation if the person (a) is (i) registered as (A) a professional engineer under the Engineering,Geological and Geophysical Professions Act, or (B) a chartered accountant under the RegulatedAccounting Profession Act, MMM CAPF AGM 14

15 The Role of Foresters AB (ii) a member of a profession that has substantially similar competence and practice requirements as a profession referred to in subclause (i) (A) in a province or territory of Canada, or (B) approved by the director, in a jurisdiction outside of Canada, (b) has technical knowledge of (i) specified gas emission quantification methodologies, (ii) audit practices, and (iii) any other matters considered relevant by the director, MMM CAPF AGM 15

16 The Role of Foresters BC "validation body" and "verification body" mean (a) a team that includes (i) a person who is authorized to act as an auditor of a company under section 205 of the Business Corporations Act, and (ii) at least one qualified professional, or (b) a body accredited, in accordance with ISO 14065, by a member of the International Accreditation Forum to use ISO ; MMM CAPF AGM 16

17 The Role of Foresters Develop or revise/review quantification methods (protocols) Afforestation Improved forest management Forest harvesting practices MMM CAPF AGM 17

18 The Role of Foresters Implement quantifications Forest harvesting practices Fuel conservation or switching MMM CAPF AGM 18

19 The Role of Foresters Assist in transactions between buyers and sellers Translation Technical input Application of quantification tools Quantification Downstream considerations e.g. carbon storage in harvested wood products MMM CAPF AGM 19

20 Summary The Carbon Economy Continues to emerge and evolve Varies with jurisdiction Has a very different paradigm and expectations than forestry Is becoming more rigorous even in the voluntary sphere MMM CAPF AGM 20

21 Summary Forestry Has not kept up with the carbon economy Hard to realize value from forest carbon management in publicly owned forests Canada is equivocal about forest carbon management due to risks of reversal Is being significantly challenged by the voluntary market MMM CAPF AGM 21

22 Summary Forestry Can participate in the carbon economy but must recognize that we will not set the terms of engagement Need to engage at a strategic level to ensure good science is brought to bear on forestry opportunities and questions MMM CAPF AGM 22