Carbon Offsetting in North America 101North American Carbon World

April 4, 2018

Forest Trends’ Ecosystem Marketplace

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Outline

• Compliance Markets in North America• Current markets

• Potential upcoming markets

• Offsets in the California market

• Voluntary Offset Market Activity in North America• Issuances and retirements

• Transactions

Compliance Markets for Carbon Offsets in North America

ActiveIn development

Canada

British Columbia

Alberta

Québec and Ontario (Western Climate Initiative)

Newfoundland and Labrador

Upcoming Markets

United States

California (Western Climate Initiative)

California Cap and Trade: CA Market Cancellations

Oregon

Washington

Regional Greenhouse Gas Initiative (RGGI)

Potential Upcoming markets

Mexico

Voluntary Offset Market Activity

Offset Lifecycle

Offset Lifecycle

Voluntary Offset Projects

Number of projects that have issued offsets on the voluntary market

Timeline of Voluntary Market Issuances and Retirements: United States

-

2

4

6

8

10

12

14

16

18

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mill

ion

s o

f tC

O2e

US IssuancesUS Retirements

Timeline of Voluntary Market Issuances and Retirements: Canada and Mexico

0

100

200

300

400

500

600

700

800

900

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Tho

usa

nd

s o

f tC

O2e

Canada IssuancesCanada Retirements

Mexico Issuances

Mexico Retirements

2017 Issuances 2017 Retirements

tCO2e

2016 Voluntary Transactions

volume

United StatesVolume: 9,981,860 tCO2eValue: $21,222,760Average price: $2.77

CanadaVolume: 113,709 tCO2e

Value: $1,142,079

Average price: $11.01

MexicoVolume: 143,490 tCO2eValue: $768,917 Average price: $5.36

value

Transactions by price (2016)

0

10

20

30

40

50

60

70

-

500

1,000

1,500

2,000

2,500

$0-1 $1-2 $2-3 $3-4 $4-5 $5-6 $6-7 $7-8 $8-9 $9-10 $10-11 $11-12 >$12

Nu

mb

er o

f Tr

ansa

ctio

ns

Vo

lum

e (t

ho

usa

nd

s o

f tC

O2

e)

Price

Volume (tCO2e) Count

Buyers’ Sectors

Public sector

Other

Private sector/for profitPrivate sector: Multinational

Private sector: Domestic

Private sector: Small-to-medium enterprise

What’s next?• Upcoming compliance markets:

• Lack of US federal action, but state and local pricing initiatives

• Canadian provinces and territories

• Mexico

• Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)

• Voluntary markets• Initiatives encouraging deep carbon cuts,

but unclear what role offsets will play

Thank you!Any questions?mgallant@ecosystemmarketplace.com