Community Forests International 10 School Lane, Sackville, NB T (506) E

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1 2013 Carbon!"#$%&#'()*)$#+,#$%&#'&-'+". Balance Report

2 An aerial photo of Property Number hectares of forestland that balance DIALOG s 2012 carbon footprint Executive Summary DIALOG has demonstrated significant leadership in the fight against climate change by ensuring that a 66 hectare forest will never be clearcut. By saving this area of forest, 2,931 tonnes of DIALOG s 2012 carbon emissions have been stored and sequestered in a Canadian forest landscape. DIALOG has offset all of their 2012 greenhouse gas emissions by recognizing the significance of human driven climate change and our part in the carbon cycle. By quantifying their greenhouse gas emissions and by reducing those emissions whenever possible DIALOG has demonstrated true carbon accountability. By achieving carbon neutrality in their organizational operations, DIALOG has given respect to those who work hard every day to put the long-term health of their ecosystems and rural communities first. By partnering with Community Forests International, DIALOG has now - to date stored 7471 tonnes of carbon dioxide equivalent in three properties in rural New Brunswick. By offsetting their emissions in these forests, DIALOG has become carbon neutral by protecting rare wildlife habitat and creating jobs in a depressed rural economy. The 66 hectare parcel of forest land that DIALOG stored their 2012 carbon footprint in is composed of a diverse range of habitats from interval hardwood forests to rich riparian zones and dense softwood stands.

3 Protection in Perpetuity Thanks to DIALOG legally binding restrictions have now been put in place to protect this 66 hectares in perpetuity, ensuring that it will never be clearcut, developed or cleared. CFI will work to ensure that ecological processes continue, providing the opportunity for this endangered forest to thrive. Social and Ecological Justice This project has changed the lives of the two previous organic farmers that owned this land for the better. It has also given hope to many others throughout the Maritime Provinces. DIALOG has empowered other land stewards. DIALOG has recognized the important role that rural land stewards play in Canada s fight against climate change and has clearly demonstrated that society does care about forest restoration and stewardship. DIALOG has given hope. DIALOG as Global Leader DIALOG is demonstrating environmental leadership. CFI is committed to showing the world what can be achieved when individuals and responsible organizations work together to do the right thing. An important first step has been taken in the DIALOG/CFI partnership. Now other responsible individuals and organizations have a clear and tried path to follow. The bar has been set, and it s been set high.

4 DIALOG s 2012 Footprint DIALOG s footprint, located 26 kilometres east of Sussex in the community of South Branch, New Brunswick. The parcel of land has been mapped and sampled based on how much carbon is stored in each stand type, which is pictured above. The property is located near Fundy National Park and sits as an island of conservation on a fragmented landscape.

5 Carbon Breakdown Summary By taking responsibility for their greenhouse gas emissions, DIALOG s studios have saved 66 hectares of forestland from being clearcut and converted to an industrial mono-culture plantation. The property was slated to be sold despite years of careful stewardship. Previous owners had worked for 15 years to find a way to ensure that valuable timber remained as a healthy forest, yet no solution availed. With the support of DIALOG, Community Forests International (CFI) stepped in at the 11 th hour and ensured that industrial forestry contractors could not purchase this land. Beyond the conservation of this property for wildlife habitat and biodiversity, the loss of this property would have resulted in the loss of stored carbon. DIALOG s actions have conserved 66 hectares of forestland and have resulted in the offsetting of 2,868 tonnes of carbon emissions. These greenhouse gasses will be kept locked up in this land. Another 63 tonnes of carbon will be stored through continued tree growth in 2013, totalling 2,931 tonnes of carbon - effectively offsetting all of DIALOG s 2012 emissions. Clearcutting and industrial plantations can t ever compete with healthy old growth forests and when it comes to carbon, DIALOG has ensured that this endangered forest can continue to maintain our planet s atmospheric balance.

6 By working with the most rigorous of legal tools available working lands conservation easements CFI has ensured that this land, despite changes in ownership, will never be clearcut, cleared for agriculture or developed. On behalf of DIALOG, Community Forests International is committed to being a responsible steward of this ecological gem for generations to come. DIALOG s stored carbon will be used to educate the public on the importance of respecting the environment. DIALOG s example will show what can happen when organizations take full responsibility for their environmental footprint. As Canada works to develop a clear and viable carbon reduction strategy, DIALOG s advocacy through action has provided a powerful solution to one of humanity s greatest environmental challenges.

7 Map 1- Location of DIALOG s Footprint, South Branch, NB. Source- Google Earth Project Location DIALOG s carbon footprint is located in the community of South Branch, New Brunswick (Map 1). The total area of the property DIALOG saved from being clearcut is 66 hectares with the Property Identification Number Step-by-step Approach to Offsetting 1- Endangered forest land identified 2- Carbon sampling of forest land following UN methodologies undertaken to determine how much carbon is and will be stored 3- DIALOG s footprint matched to an appropriately sized parcel of land 4- Forest land is protected in perpetuity via a working lands conservation easement- the forest will never again be clearcut or developed 5- FSC certification and forest-carbon management plan developed 6- Resampling undertaken every 5 years to ensure carbon is maintained or increased within the forest 7- Sustainable jobs and livelihoods created throughout rural Canada

8 There are three pillars of our approach to carbon offsetting, ensuring transparency and accountability in our work to fight climate change, improve forest ecosystems and maintain our rural economy. The first pillar is a legally binding easement that is attached to the deed of the property, ensuring that the property will never be clearcut, cleared for agriculture or developed. Working land conservation easements stay attached to the land title in perpetuity while still allowing for responsible forest management, increasing the carbon stored on site while helping to mitigate the risks of carbon lost due to fire, wind throw or insect outbreak. The second pillar is the certification of these forests to the most environmentally rigorous forestry standard in the world, the Forest Stewardship Council (FSC ). FSC certification is recognized by such bodies as LEED as the most robust forestry standard in the world that ensures that projects are good for the environment, economy and society. The third pillar is verification of the carbon emissions reductions and removals that are create through methodologies developed by the UNFCCC and the Verified Carbon Standard (VCS). Both of these bodies have developed protocols and processes that lay-out how to quantify and account for the amount of carbon stored while working to offset DIALOG s carbon. All of our work has been reviewed by qualified third-parties to ensure accuracy and accountability.

9 Carbon and Canadian Communities DIALOG is showing leadership in supporting the development of sustainable rural economies in forest dependent communities across Canada. By choosing to offset their carbon in rural forests, DIALOG is demonstrating a new relationship between the urban and rural that has the potential to change how Canadian communities interact. By pairing together DIALOG s greenhouse gas emissions with working forest conservation efforts in rural Canada, a new relationship is being established between Canada s rural and urban communities. In partnership, Canadians mitigate the dangerous impacts of climate change while investing in important economic and ecological resources. And DIALOG s offsets aren t just fighting climate change. They are quickly becoming a powerful social driver rebuilding rural communities and economies from the forest up. And as the trees in these forests grow, their power to affect positive change increases. In addition to storing carbon and all the ecological services they provide, healthy forests support more jobs than unhealthy clearcut forests do. It s well known that larger, more valuable trees support 5 to 10 times more jobs per cubic meter of wood cut compared to smaller, less valuable trees. Store carbon, create jobs and protect the forest - it s the DIALOG/CFI approach.

10 The DIALOG/CFI Approach to Offsetting Carbon At the local scale, DIALOG s carbon offsets have worked to ensure that rural forests remain and support Canada s rural economy. On a global scale, this project has demonstrated a new, symbiotic and resilient relationship between the urban and the rural. But how much of difference does saving 66 hectares of endangered forest make to the climate? How much carbon does it keep out of the atmosphere? Carbon Offsetting and Additionality In order to offset DIALOG s carbon footprint, additional carbon needs to be stored. Additional carbon storage is carbon storage that would not have happened without DIA- LOG s involvement and support from the sale of carbon offsets. Additionality is demonstrated by comparing CFI s style of ecologically based forest management to what is the most likely forest management scenario in the region, which is known as the baseline scenario. In southern New Brunswick, industrial forest management via clearcut, plant and repeat reigns supreme. The only people looking to purchase forest land in remote rural areas are large, industrial forestry companies that look to maximize short-term returns on their investments by liquidation clearcutting.

11 The amount of carbon stored under this industrial, baseline scenario is shown in Table 1 and was estimated using the latest carbon modelling software developed by the Canadian Forest Service. Our ecological approach to forest management works with the natural environment to grow and sustain healthy forests that produce valuable wood products and ecological services, such as carbon storage. This management scenario is known as the project scenario and can also be found in Table 1. Although this style of forest management is more expensive, higher costs are reconciled through the sale of carbon offsets. Therefore, it is the difference between the amount of carbon we store through ecologically based forestry (project scenario) and the amount of carbon stored through industrial forestry (baseline scenario) that qualifies as additional. And because ecologically based forest management stores more carbon than industrial forest management does, we create a surplus of carbon stored. In Table 3, this difference is shown in the column titled MgC/ha reduced/avoided. Table 1- Summary of preliminary baseline and project scenario carbon storage balances Carbon Pool Baseline Scenario Project Scenario (Estimated) Above- and Belowground Live Tree 50 MgC/ha 100 MgC/ha

12 How Carbon is Measured in the Forest All of our carbon measuring techniques are taken from methodologies developed by the UNFCCC and used by such reputable organizations as the Verified Carbon Standard (VCS) and CarbonFix. We measure two types of carbon in the forest: carbon stored in live trees and carbon stored in fallen dead wood. Live Tree Carbon To measure carbon in live trees we delineate a randomly selected 20m by 20m square and measure all of the trees that are larger than 5 cm in diameter. The species of each tree is recorded and, along with diameter, is plugged into an equation that estimates the amount of carbon in that tree. All of the trees within each square are added up and multiplied by 25 to give an per hectare estimate on the amount of carbon. We measure at least 3 of these plots in each Carbon Unit- areas of trees in the property that have similar species and age. This allows for accurate quantification. Next we come up with an estimate of carbon stored in each carbon unit across the 66 ha, and aim to be accurate within 20% of the average. If more plots are required to increase accuracy, we carry them out.

13 The amount of carbon in live trees can be found in Table 2. Table 2- Amount of avoided GHG emissions (measures in Mg CO2e) from above- and belowground live tree biomass on PID Carbon Unit Area MgC/ha Total MgC MgC/ha reduced/ avoided Total MgC reduced/ avoided A B D E F Total Total Mg CO2* reduced/avoided Fallen Dead Wood Carbon Dead wood is the life of the forest. Everything depends on it, and without it the forest cannot be healthy. Dead wood also provides perhaps the greatest contrast between CFI s style of ecoforesty

14 and industrial forest management. Industrial foresters see dead wood as a waste and inefficiency, not recognizing the importance of dead wood in keeping forests and soils healthy. CFI recognizes that in nature nothing is wasted. Dead wood is energy to forest soils, and soils are the basis of all growth of trees. The organization makes a special effort to ensure that as much dead wood is left in the forest as is possible. We measure dead wood by selecting random spots in each Carbon Unit and measuring two perpendicular 50m lines out from that point. The diameter of each piece of wood greater than 7cm is measured that crosses those lines. These diameters are plugged into an equation and an estimate is given for the amount of carbon stored in dead wood. We are currently in the process of assessing the amount of dead wood in our forest. This summer we are working with a Honours student in Environmental Science from Mount Alison University in Sackville, NB, conducting this analysis. Upon the completion of this project, the student will be able to tell us how much carbon is stored in dead wood in our forest, whether or not there is enough there to provide for forest health, and give recommendations for managing that dead wood that can be incorporated into our forest carbon management activities.

15 Building Tomorrow DIALOG is demonstrating environmental leadership. By rebuilding the health of forest ecosystems DIALOG is fighting climate change in an accountable and transparent manner, valuing vibrant rural communities and sustainable economies. We at CFI are working hard to build upon DIALOG s successes in order to further the fight against climate change. The DIALOG/CFI approach shows how a negative environmental impact can be transitioned into a positive environmental opportunity. The way we live and work must improve and restore our planet s forests. The DIALOG/CFI approach has restored balance. We envision a world where everyone accounts for their carbon emissions and tips the scale back to an equilibrium. We believe in that world because we need to. We at CFI are proud to work with DIALOG, doing all the we can in partnership to live our beliefs. In partnership we are building tomorrow.