Jason scott

EKO on Biodoversity:A long and winding road

Wednesday, November 10, 2010

About EKO

Vision: Put a price on nature’s services that reflects their true value to preserve them: clean air, water, biodiversity

Mission: Catalyze institutional strength capital for projects, firms and funds in ecosystems markets

Our equity investors:

David Blood, Wolfensohn & Co., Peter Wheeler, Lord Jacob Rothschild, Sunil Paul, Larry Lunt, Colin Leduc, KL Felicitas, Richard Kauffman, Ben Goldsmith, Aimee Christensen and Carter Bales

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Ecosystem Services


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Headed for ecological overshoot without pricing?


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Already there!


Size and Growth of Markets

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Ecosystem market sizes in millions of dollars – historical and estimated future

US carbon at $80b in 2012-13 assumes regulated US carbon market.


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Carbon Markets

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Compliance markets

Cap and trade/“Price on carbon”

$144b or 8,625 MtCO2e in 2009

Geographic coverage (mostly EU)

15% Offsets by volume (tons)

Voluntary markets

Value based on “quality” of reductions

$388m or 94 MtCo2e in 2009

Global in supply; demand driven by U.S. and EU

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“Green Carbon”

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Forests, agriculture and soil carbon have historically been outside of regulated carbon markets, although always critical to voluntary markets

Front and center now with development of the US and post-Copenhagen

Forestry carbon already a part of leading pre-compliance US market: CA

Recognition that forestry, soil and agricultural carbon make up 25-30% of global GHG problem; REDD being one of the few successes of Copenhagen

Ag states and interests have a powerful voice - used it to influence the Waxman-Markey bill, changing the politics of climate change

Coalition on Agricultural GHG’s (C-AGG) aggregating science and policy


Where are We?

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Where are We?

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Regional Carbon Markets

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Future for REDD?• Are there too many credits out there?

• Projects could be quite big

• Will there be a mis-match between supply and demand?

• What does that do to the market?

• What rules out of Cancun?

• And what about leakage?

• Oddly, the great hope in my mind is the US

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The Nitrogen Problem



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Water-related Markets

Much less developed

Two possible kinds:

Quality

Quantity

Quality likely to come in first

i.e. Nutrient trading

Science and application easier

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A Global Problem...Source: New Scientist






























Markets in Biodiversity?Is toughest nut to crack

Not easily commoditized

Is an “anti-commodity”

Besides, what do we mean by Biodiversity?

Ecosystems?

Species?

Genetic diversity?

All of the above

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And yet there is movement...Wetland & Conservation Banking (US)

Bio-banking & BushBroker (Australia)

Voluntary Biod. offsets (Global)

Gov’t payments for biodiversity (Global)

Such as Bush Tender & Eco-Tender

Program in Mexico, China

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The $150,000 FlyDelhi Sands Flower-loving Fly

First Fly on Endangered Species list

Stopping development in San Bernadino County

Vulcan Materials Bank

Sold credits for between $100k and $150k






























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True ValueTake nature’s services for granted

What isn’t valued is over-used

Think what would happen if electricity were free

Then think what would happen to generating companies

That is what is happening to nature

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