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The Global Conservation Standard

Michael V. Galante Administrator to the GCS Oversight Organization

Triple Bottom Line Investment Conference

27 May 2010 Four Seasons Hotel Chinzan-so, Tokyo Japan

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biocarbon consult

•  biocarbon consult is a network of experts in the fields of land use and bioenergy.

•  biocarbon consul t ’s c l ients are companies, non-governmental and inter-governmental organizations, and governments.

•  Institution building and capacity development, mitigation and adaptation portfolio analysis, mitigation-project related services, independent expert statements, negotiation strategies, project & methodology review, and post-2012 policy advice.

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What is the Global Conservation Standard?

•  Sustainable Development Mechanism; – Economic, social, environmental

balance •  Financed through the Conservation of

Ecosystems –  Adopts a landscape approach –  Natural conservation or rehabilitation of

landscapes

•  Valuation of Ecosystem Service stocks •  Scientifically sound methodologies;

–  Reviewed by 100 international experts (Feb) –  Additional 5 Expert Reviews collaborated

with biocarbon to produce the Standard

•  “Conservation Credit Units-CCUs”

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Global Conservation Standard (GCS)

•  Ecosystem Services include: –  Carbon –  Water –  Biodiversity –  Nutrient

•  Provides annual payments for keeping landscapes under conservation

•  Additionality is not an issue •  No baseline scenario needed •  Minimum 30-year term; •  3rd party validated and verified; •  NO COSTS TO THE LANDOWNER

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Who are the buyers?

O r g a n i z a t i o n s , i n s t i t u t i o n s a n d companies interested to have an extremely effective Corporate Social Responsibility portfolio

What are the benefits to the buyers?

•  Promotion of strong business ethics; •  Ensuring accountable practices; •  Promotion of long-term responsibility; •  Encouraging community growth and

development •  Eliminating practices that harm the

public sphere

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Structure of the GCS

Carbon Credited Farming •  Legal and Financial Administrator; •  Ensuring the long-term financial

mechanism is developed, maintained and audited;

•  Purchaser of the CCUs •  R e s p o n s i b l y t o m a n a g e t h e

Conservation Areas.

biocarbon consult •  The GCS Oversight Organization;

•  R e s p o n s i b l e f o r t h e t e c h n i c a l development of the GCS;

•  Host of the Project Registry.

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Principles & Criteria

Principle 1: Legal Compliance

Principle 2: Long-Term Management

Principle 3: Environmental Responsibility

Principle 4: Social Responsibility

Principle 5: Environmental Services Quantification

Principle 6: Independent Auditing

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Registration Steps

1.  Project Identification Note (PIN); 2.  PIN is reviewed by Technical Panel (TP); 3.  TP will conduct a PIN Assessment; 4.  If approved, sign Conservation Agreement; 5.  Agreed % of upfront Conservation Credit Units

(CCUs) will be deposited into the registry; 6.  Proponent(s) wil l develop the Conservation

Management Plan (CMP) against the GCS P&C; 1.  PSPs establishment 2.  Social and Biological elements documented 3.  Enforcement / patrol regime outlined

7.  CMP submitted to 3rrd-Party Accredited Agency for approval;

8.  TP will issue a certificate of compliance along with residual CCUs;

9.  Project undergoes annual 3rd-Party Verification and CCUs are credited annually!!

Registration can be completed in 6-8 months!

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GCS Revenue Flow

Breakdown of Revenue Flow

•  20% to land owner

•  30% to in-country foundation (OCF)

•  50% to financing the entire project cycle

–  PIN Assessments, 3rd party validation and verification, project development, annual monitoring

–  GIS mapping, aerial fly-over, marketing and sales, maintenance of the Oversight Organization

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GCS Mechanics

Methodology # 1: Carbon Forestry Above Ground • Year 1 uses IPCC default values; • Year 2 used primary data from PSPs

Fuji-Hakone-Izu National Park • Size: 1,269 sq km or 122,690ha • Infrastructure: ~ 30% of area 36,807ha • Net Conservation Area: 85,883ha • Forest Type:

–  25% Temperate Oceanic –  25% Temperate Continental –  50% Temperate Mountain

• Forest Quality: 100% ≥75% crown cover

• Carbon STOCK 14,761,224 tCO2

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GCS Financial

Fuji-Hakone-Izu National Park

•  Carbon STOCK: 14,761,224 CCUs •  Sale of CCUs at $ 0.25 / tCO2 •  14,761,224 * $0.25 = US $3,690,306

•  20% to landowner (US $738,061)

•  30% to in-country foundation (OCF) ($ US 1,107,091)

•  50% to finance project administration ($ US 1,845,153)

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Options and Choices Foundation (NGO)

•  In-Country Foundation set up by GCS •  Mandated towards putting money received

through project development back into Sustainable Development (Buffer Zone)

•  Focus: –  Reforestation –  Enrichment planting –  Agroforestry –  Waste Management –  Watershed Services –  Provision of Energy (rural areas)

•  OCF members made up of: –  Government –  Private –  NGO

•  Monies must be spent annually

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Global Conservation Standard

•  Ecosystem Conservation & Security

•  Commun i t y Empowermen t and Development

•  Sustainable Development

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Contact Information

biocarbon consult Badstr. 41, 77652, Offenburg, Germany

info@biocarbon.net michael.galante@biocarbon.net michael.galante@conservationstandard.org