SCS-COC FSC Supplier The Mark Of Responsible Forestry Copyright: 1996 Forest Stewardship Council A.C

Transcription

1 SCS-COC FSC Supplier The Mark Of Responsible Forestry Copyright: 1996 Forest Stewardship Council A.C

2 About Our Company: Red Rock Enterprises is a family-owned forestry company operating for over three generations in the timber-rich Appalachian Mountains of Western Maryland. We are buyers and sellers of timber and land. We also provide full-range forestry services including export preparation, storage, trucking and timber management plans. Red Rock Enterprises is a sub-aggregator for 3rd party certified forest lands. We are fully certified to the Forest Stewardship Council standards (FSC). 2

3 Red Rock Enterprises: Products and Solutions Buyers & Suppliers of Appalachian Hardwoods: Logs Lumber Pulpwood Biomass Scragg-wood Peelers Standing Timber Services Offered: Forest Management Carbon Credit Solutions Assistance in FSC Certification Procurement Services Brokerage Services (Domestic/International) Trucking Inventory management Off Site Storage 3

4 About the NCOC: The National Carbon Offset Coalition was founded in The aim of the NCOC is to enable landowners to collect revenue from selling carbon credits. These carbon credits are traded on the Chicago Climate Exchange. Red Rock Enterprises works with the NCOC as a sub-aggregator. 4

5 About Sojitz: Sojitz Corporation of America is a US subsidiary of a large Japanese General Trading Company called Sojitz Corporation (Consolidated Annual Sales: About $50 billion) Sojitz engages in various types of business including timber and carbon offsets. Sojitz seeks forest carbon offset business and has been collaborating with Red Rock Enterprises 5

6 About the CCX: The Chicago Climate Exchange (CCX) was founded in 2000 with a grant from the Joyce Foundation. The CCX is a U.S. corporation that oversees the only cap and trade system in North America. The CCX has affiliates and projects all over the world. The CFI contract is the commodity traded on the CCX, each of which represents 100 metric tons of CO 2 equivalent. It is a self-regulated exchange governed by members of CCX. 6

7 What is Cap and Trade? Industries are given a specific limit on how much carbon dioxide they can emit each year. Industries that emit less can sell their remaining allowances to industries that have exceeded their allotted amount. The government auctions off allowances that allow industries to emit a certain amount of carbon dioxide and other greenhouse gases. This places economic pressure on companies that exceed their allotted amount of greenhouse gas emissions. 7

8 Illustration of Cap and Trade: Excess carbon dioxide CAP TRADE MONEY ALLOWANCES 8

9 What are Carbon Credits? Carbon credits offer companies, countries, and individuals an opportunity to balance their CO2 output by purchasing credits from others that are emitting less greenhouse gases than prescribed maximums. These credits can be exchanged between businesses or bought and sold on international markets. Additionally, they can be sold to commercial and individual customers who are interested in lowering their carbon footprint on a voluntary basis. One carbon offset represents the reduction of one metric ton of carbon dioxide, or its equivalent in other greenhouse gases. The average yield of Hardwood Forests is 2 metric tons carbon dioxide per acre each year. 9

10 The Future of the Carbon Credit Market Energy use and emission levels are predicted to keep rising over time; the number of companies needing to buy these credits will increase. Rules of supply and demand indicate that market value for carbon credits will only increase over time. Carbon offsets offer a less expensive alternative to cutting back on fossil-fuel consumption. Industries will buy carbon credits to offset their pollution output. 10

11 The Future of the Carbon Credit Market Currently, this is a voluntary market. This will likely change, as legal mandates are rapidly approaching. For this reason, it is a good time for landowners to get in on the ground floor. 11

12 Ways of obtaining carbon credits from forested land: Long-lived wood products credits are a one shot deal, where trees are harvested and credits are issued based on the quantity of harvest. Sequestered carbon credits preserve the forest and the number of credits are determined by sophisticated aerial and ground surveys of existing and growing biomass. Afforestation projects may also be implemented as a way to secure carbon credits from forest lands. 12

13 How Does the Carbon Cycle Work? 1. Carbon is emitted by factories, etc. 2. These emissions collect in the atmosphere, causing the greenhouse effect. 3.Growing forests absorb this carbon and release oxygen. 4.Reforestation and sustainable forest management ensure that the Carbon cycle is regulated. 5. Carbon credits provide a way to effectively control our carbon footprint through a system of trade and purchase. 13

14 Carbon Sequestration is a 10 Step Process RESULTS IN A MULTI-YEAR REVENUE STREAM 14

15 Step 1: Planning Meeting A planning meeting will be scheduled. This will address the following: The long and short term desires of the customer will be obtained. Specific objectives for the life of the project will be developed. The application process will start. 15

16 Step 2: Management Plan Professional foresters will meet with landowners and will: Create a Carbon Sequestration plan. Develop a timber management plan. 16

17 Step 3: Forest Certification The landowner must have their land certified by one of the following: The Sustainable Forestry Initiative(SFI) The Forest Stewardship Council(FSC) The American Tree Farm System 17

18 Step 4: Forest Inventory Aerial survey: Tree biomass will be determined by flying over the forest using a patented camera suite, combined with Geographical Information Systems (GIS). GIS software will be used to present results. Property of Sunshine Air 18

19 Step 4: Forest Inventory page 2 Ground Verification: Professional foresters will sample inventory the tract and determine species diversity and timber profile. A carbon baseline will be established from this information. A CCX approved modeling program (FVS) will then predict future additionality of carbon. 19

20 Step 5: Project Proposal Proposal data will be collected. Red Rock, LLC is a sub-aggregator and will collect the proposal data. Proposal data will be submitted to the aggregator, the National Carbon Offset Coalition (NCOC). Project will be submitted to the CCX. 20

21 Steps 6 and 7:Submission and Verification Project Submission: Project Verification: The progress of the proposal will be monitored. Respond to inquiries from the CCX forestry committee. A third party verifier is selected. The verification will be monitored and coordinated. 21

22 Step 8: Offset Trading To enable trading of carbon credits, CCX has created a unit of measure known as the Carbon Financial Instrument. The landowner is issued an allotment of Carbon Financial Instruments (CFI). One CFI represents 100 metric tons of carbon dioxide emissions reduction, equivalent to 100 carbon credits. 80% can be accessed immediately; 20% are placed in a reserve pool by the CCX to be issued at end of contract period. CFIs are submitted through the NCOC to the CCX Market for trading. Funds are issued to the owner. 22

23 Steps 9 and 10: Project Maintenance/Renewal Project Maintenance: The plan can be modified in cooperation with the landowner. Re-inventory and growth modeling are parts of this process. Project Renewal: Land and Carbon assets will be reassessed. From this point, the sequestration process continues. 23

24 In Conclusion: D O E S A N Y O N E H A V E A N Y Q U E S T I O N S, C O M M E N T S O R F E E D B A C K? 24

25 9659 Friendsville Road Friendsville, MD Phone: Fax: SCS-COC FSC Supplier The Mark Of Responsible Forestry Copyright: 1996 Forest Stewardship Council A.C