Ecosystem Markets Primer T.J Mascia Troutman Sanders, LLP

Transcription

1 Ecosystem Markets Primer T.J Mascia Troutman Sanders, LLP New York State Wetlands Forum, Inc. Annual Conference and Meeting April 29 30, 2014

2 Ecosystem Markets: Fundamental Concepts Impacts are Inevitable Market-Based vs. Command-and-Control Restoration vs. Restriction Natural vs. Built Capital Benefits/Advantages vs. Limitations Before After

3 Ecosystem Markets: Primer Focal Points Driver(s) Units Participants Practices/Process Status/Trends

4 Ecosystem Market Examples Voluntary Greenhouse Gas (GHG) Offsets Wetlands and Stream Mitigation Banking Species Conservation Banking Water Quality Trading (WQT)

5 GHG Voluntary GHG Offsets

6 Market Basics Driver(s): Pre-Compliance / Sustainability / Philanthropy Units: MtCO2e Buyers: Unregulated Corporations / NGOs / Universities / Individuals Sellers: Offset Project Developers / Retailers / Aggregators Others: Standards / Registries GHG

7 Practices/Process Offset-Generating Practices: GHG Sequestration GHG Capture Offset Certification & Sale Verification Certification Registration GHG

8 Status/Trends GHG Source: Forest Trends Ecosystem Marketplace

9 Wetland & Stream Mitigation Banking Mitigation

10 Market Basics Driver(s): CWA Section 404 / WRDA / 2008 Mitigation Rule Units: Acres of Wetlands + LF of Stream Buyers: Section 404 Permittees Sellers: Mitigation Bankers / ILF Sponsors Others: USACE / Interagency Review Team (IRT) Mitigation

11 Practices/Process Credit-Generating Practices: Creation Enhancement Restoration Preservation Banking Process: Initial Regulatory (IRT) Review and Approval Credit Release(s) RIBITS Bank Closure and Long-Term Management Mitigation

12 Practices/Process Mitigation

13 Practices/Process Mitigation

14 Status/Trends: Market Growth & Success Source: Forest Trends Ecosystem Marketplace State of Biodiversity Markets 2011 Update 900+ Approved Banks 960,000+ acres restored/protected (2010) Average Bank Size = 174 acres (2008) Average Credit Price = $74,535 (2008) Estimated Annual Market Value = $1.3 - $2.2 billion/yr Mitigation

15 Status/Trends: Permitting Efficiency Source: Birnie, Katherine (Ecosystem Investment Partners),. May 9, 2013."State of the Market: National Market Analysis and Overview. Presentation at2013natonal Mitigation &Ecosystem Banking Conference. New Orleans, LA Mitigation

16 Status/Trends: Regional Variability Mitigation Source:

17 Status/Trends: New York 3 Approved Banks as of Jan (RIBITS) Future Market Potential? NYCEDC Releases Request for Expressions of Interest to Establish First Wetlands Bank in New York City Press Release December 20, 2013 Mitigation

18 Species Conservation Banking Species

19 Market Basics Driver(s): ESA Sections 7(a)(2) and 10(a) Units: Acres of Habitat / Population Buyers: ESA Permittees Sellers: Species Conservation Bankers ILF Sponsors Others: USFWS / State Resource Agencies Species

20 Status/Trends Source: Forest Trends Ecosystem Marketplace State of Biodiversity Markets 2011 Update Species

21 Status/Trends Species currently protected by US conservation banks: Black-capped vireo - TX California Coastal Gnatcatcher - CA California Tiger Salamander - CA Carolina Heelsplitter SC Chinook Salmon CA, WA Conservancy Fairy Shrimp- CA Florida Panther - FL Florida Scrub Jay - FL Giant Garter Snake- CA Giant Kangaroo Rat - CA Swainson s Hawk - CA Golden Cheeked Warbler - TX Gopher Tortoise - MS Oregon Chub - OR San Joaquin Kit Fox - CA Sand Skink - FL Utah Prairie Dog - UT Steelhead - CA Cheat Mountain Salamander WV Western Burrowing Owl - CA Valley Elderberry Longhorn Beetle - CA Delta Smelt - CA Species

22 Status/Trends: NY Conservation Banking Current Efforts: Indiana Bat Indiana Bat habitat enhancement: cave gate installation at Nature Conservancy project in the Missouri Ozarks Other Species Banking? Species

23 Water Quality Trading WQT

24 Market Overview Driver(s): CWA Sections 402 and 303 / TMDLs EPA WQT Policy / State Laws & Regs Units: Lbs. N or P / Sediment / Thermal Buyers: NPDES Permittees Sellers: Bankers / Farmers / Point Sources Others: EPA / State Agencies WQT

25 Practices/Processes WQT

26 Status/Trends WQT

27 Ecosystem Markets: Criteria For Success Driver(s): Strong enforceable cap Units : Real / Verifiable / Appropriate Ratios Participants : Role of Private Entrepreneurs Practices/Process: Clarity / Consistency / Transparency Status/Trends: Monitor and Adapt

28 Questions? T.J. Mascia Troutman Sanders, LLP