National Carbon Offset Coalition, Inc. Tribes Involvement in Carbon Sequestration Carbon Credits... A Unique Market- Based Approach NCOC – Visit our website:

National Carbon Offset Coalition, Inc.

Tribes Involvement in Carbon Sequestration

Carbon Credits . . . A Unique Market-Based Approach

NCOC – Visit our website: www.ncoc.us – 406-491-4471NCOC – Visit our website: www.ncoc.us – 406-491-4471

National Carbon Offset Coalition

• Seven non-profit resource conservation organizations,

• Based in Butte, Montana.

• The program offers corporations a cost-effective way to achieve their carbon dioxide emission reduction goals.

• Carbon credit transfer is a new marketable commodity that can provide landowners and communities with a new potential source of revenue.

• Funded by both the State of Montana and the Department of Energy


Grant funds provide . . .

the ability to test all components of the proposed trading infrastructure which include:

•Handbook functionality•Planning forms access and use •Listing agreements and contracts functionality for various landowner categories, market concerns, and federal and state carbon registries.•Portfolio functionality, maintenance and marketing issues•Implementation timelines and staff responsibilities•Project measuring, monitoring, verification implementation and reporting criteria•Financial feasibility and cost breakout of trading infrastructure components •Final design of proposed portfolio auditing and verification processes


What needs to be Accomplished

• Two 12,500 ton portfolios (tribal & private landowners).• Carbon sequestration strategy for Sempra and 25,000 metric tons of

credits.

During the next three years, NCOC and the DOE During the next three years, NCOC and the DOE Partnership need to acquire:Partnership need to acquire:


Chicago Climate

Exchange

NatSourceNCOC

Sellers

Landowners

TribesCorporationsState Lands

Buyers

CoalPowerPlants

CementPlants

NCOC Organizational Chart

So, what is the science behind all of this?

Major Greenhouse Gases (GHG’s)

Carbon Dioxide (CO2)

Methane (CH4)

Nitrous Oxide (N2O)


NCOC’s principal Green House Gas

focus

What is Carbon Sequestration?Capture and storage of CO2 and other Greenhouse Gases

that would otherwise be emitted to the atmosphere

Capture can occur:– at the point of emission– when absorbed from air

Storage locations include:– underground reservoirs– dissolved in deep oceans– converted to solid material– trees, grasses, soils, or algae


NCOC’s Carbon Credit

The quantity of carbon offered in a trade; for example, the amount claimed to be sequestered in soil or trees.

Carbon sequestration units (CSU’s). Equal to one metric ton of atmospheric CO2 reduced or avoided from an agreed baseline amount. To create a CSU, the amount of CO2 must be measured, verified, and registered.

One ton of carbon contains 3.67 tons of co2equivalent (atmospheric CO2).


Needed Land Use Categories

• Reforestation: Lands previously forested, but recent natural and/or artificial reforestation efforts have failed

• Afforestation: Establishing trees on sites not naturally forested but capable of supporting forest stands

• Agroforestry: Field and farmstead windbreaks, riparian forest buffers, hybrid poplar plantations

• Fire Rehabilitation: Forested lands destroyed by wildfire.

• Cropland: Minimum till to no-till and reseeding of grass on marginal croplands

• The cropland pilot will have three key inter-related dimensions, resulting in geographically constrained field tests in north central Montana and broad market exploration activity across the four-state region


Sequestration Potential Big Sky Region

Practice Available Area (000 Ac.)

Potential Area (1000 Ac.)

Potential Mitigation

(TgCO2e/yr)

Afforestation 34,000 3,400 4 – 6

Forest Management

10,900 6,200 1.5 – 2

Field Windbreaks 594 300 1.0 – 1.5

Riparian Forests 1,500 750 2 – 2.5

Biomass for Energy

10,500 330 0.25 – 3

Total 9 – 15


NCOC Combines . . .

Science

Policy

Market


Science . . .

Member of the Big Sky Regional DOE Partnership which includes universities, national research laboratories

Designing standards & protocols to meet emerging markets and 1605b requirements


Policy . . .

Tracking the rules and guidelines for 1605b registry

Providing public comment

Developing climate trust

Reviewing state registries

Developed standards/protocols

Updating USDA COMET Model


Market . . .

Working with emerging markets (Chicago Climate Exchange & Natsource)

Direct trades through buyers

Working with landowners, Tribal governments, & others to design contractsNCOC – Visit our website: www.ncoc.us – 406-491-4471NCOC – Visit our website: www.ncoc.us – 406-491-4471

Project Requirements

Landowner desireInitial Proposal for ProjectListing Agreement with NCOCNCOC Builds portfolio/seeks buyerBuyer makes offerNCOC and landowner accept offerProject Plan completedContract completed


NCOC Website

• NCOC Carbon Sequestration Handbook

• NCOC Portfolio Standards• Initial Proposals

1. Conservation Tillage2. Biomass Fuel Offsets3. Forest Management4. Afforestation5. Agroforestry6. Grass Planting7. Grazing Management8. Small Forest Projects


Current Tribal Efforts

• Nez Perce Tribe – 5200 metric tons entered onto CCX via NCOC Tribal Portfolio

• Fort Belknap – Reforestation Proposal submitted to the Oregon Climate Trust

• Navajo – Afforestation Initial Proposal is underdevelopment


Overall Benefits to Buyers

• Industry may find that purchasing CSU’s as an offset for their emissions is an economical way to meet their emission reduction needs.

• Enhances the health and sustainability of the ecosystem.

• Offers participating corporations a cost-effective way to produce enough CSU’s to achieve their carbon dioxide emission reduction goals.

• NCOC provides the buyer with a Certificate of Assurance containing final measurements, conditions, commitments, etc. meeting buyer demands.

• Companies can take voluntary steps now to establish their own emissions credit programs for greenhouse gases. By doing so, they can demonstrate their commitment to reducing carbon dioxide emissions and best position themselves to have their reductions recognized whenever a formalized program is introduced.

• Creates positive public relations.


NCOC’s Benefits to Landowners

• Landowners gain the practical experience in producing carbon credits for future markets.

• Flexible contractual agreements — ranging from five (5) years to long-term 80+ years.

• Carbon sequestration credits offer landowners a new “potential” source of revenue.

• Enhances the health and sustainability of the ecosystem.


For more information contact:

NATIONAL CARBON OFFSET COALITION305 W. Mercury, Room 408

Butte, Montana 59701(406) 723-NCOC

(6262)Email: [email protected]

www.ncoc.us

Documents

National Carbon Offset Coalition, Inc. Tribes Involvement in Carbon Sequestration Carbon Credits... A Unique Market- Based Approach NCOC – Visit our website: