Leadership in a Time of Rapid Change: Envisioning Solutions to Environmental Challenges and Exploring the Future of Environmental Markets

Transcription

1 Leadership in a Time of Rapid Change: Envisioning Solutions to Environmental Challenges and Exploring the Future of Environmental Markets Duke Nicholas Institute for Environmental Policy Solutions Exploring the Future of Environmental Markets October 22, 2015 George Kelly Resource Environmental Solutions, LLC

2 RES Company Snapshot Overview RES is a premier provider of ecological offset solutions in the US Operations in 9 states across the Appalachian, Mid-Atlantic, Southeast and Gulf Coast regions 110 mitigation sites permitted/in process Conservation easements protecting over 425 sites 32,000 restored wetland acres 4,000 acres of custom mitigation solutions 155 miles of stream restoration Reduced and sold over 240 tons of nutrients 8,000,000+ restorative stems installed Rehabilitated and preserved over 3,700 acres of endangered species habitats RES - EBX Transformative Merger Closed December 1, 2014-evidence of market maturation Combine two of the largest mitigation providers, each with deep, well-respected teams Create scale and balance sheet strength to support large-scale mitigation commitments Enhance geographic reach and product development The Restoration Economy $25 Billion per year Restoration Industry is credited with 221,000 jobs Ecological restoration is a $9.5 billion industry, directly employing 126,000 Indirectly, the restoration economy generate $15 billion and 95,000 jobs Source: BenDor, Todd. Estimating the Size and Impact of the Ecological Restoration Economy,,

3 Environmental Market Concepts Resource Mitigation / Offsets Offsetting impacts to resources by restoring and enhancing another similar resource Banking vs. off-site mitigation Real estate type market/local Cap and Trade Trading resource use allowances to achieve a cap on total allowances Air and water quality Commodity type market Government Incentives and Taxation Using federal, state and local incentive payments to pay for specific objectives Payment for Ecological Services (private or public) Environmental asset payments Voluntary 3

4 Environmental Mitigation and Conservation Market Opportunity Ecosystem Market Estimated Current Size (1) (US $ per annum) Potential Site 2050 (US $ per annum) Regulatory Driven Ecosystem Offsets (including US Wetland Mitigation Banking) $ billion $5 billion Regulatory Driven Species Offsets (including US Conservation Banking) >$200 million $300 - $1billion Water Quality Trading $30-50 million (2015) $300 - $1billion Natural Resource Damage Claims (performance contracting) $100 million $ 1 billion+ Carbon Sequestration through Forestry $216 million $1 - $2 billion Government/Private Conservation Payments and Biodiversity Protection/Enhancement $4 billion $10 billion Government Payments for Water-Related (WRP) Ecosystem Services $8 billion $20 billion Source: IUCN, Building Biodiversity Business, 2008; Environmental Law Institute, Mitigation of Impacts to Fish and Wildlife Habitat: Estimating Costs and Identifying Opportunities, October, Ecosystem Marketplace; 2011 Update: State of Biodiversity Markets Offsets and Compensation Programs Worldwide ; Covering New Ground: State of the Forest Carbon Markets 2013, Forest Trends Ecosystem Marketplace. (1) Based on 2010 / 2011 market estimates. 4

5 2015 Mitigation Bank Status (404 and ESA) 2,183 Bank sites loaded on RIBITS including: 60% Approved 16% pending 13% sold out 2% suspended 9% terminated/withdrawn Lake Long Mitigation Bank, Louisiana Source: Martin, Steve. Regional & national Trends in 3 rd Part Mitigation: An Analysis of RIBITS Data NMBA. May 8,

6 Number Of Banks Approval of Bank Sites Source: Martin, Steve. Regional & national Trends in 3 rd Part Mitigation: An Analysis of RIBITS Data NMBA. May 8,

7 2015 Status of Conservation Banks Total number of conservation Banks: % approved (includes sold out & suspended banks) 16% pending 14% sold out (percent of total approved banks) 1% suspended 2% terminated/withdrawn Source: Mead, Deborah L. Analysis of National Conservation Banking Trends. NMBA. May 8, Northern Long-Eared Bat 7

8 Approved Conservation Banks Source: Mead, Deborah L. Analysis of National Conservation Banking Trends. NMBA. May 8,

9 Resource Environmental Solutions, LLC website wetlands photo here George Kelly