Weisberg 2011 biocycle

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  • To date: Provided financing of $11M18 projects, 10 typesCompliance programs in Oregon, Washington, Montana & Massachusetts. 12 staff, operating budget of $1.6M, 95% from servicesProblem: 1) Private sector funding for innovations has dried up because of slow climate policy and financial crisis. 2) However we can’t delay significant solutions that await!
  • Accounts for verification costs
  • Accounts for verification costs
  • Weisberg 2011 biocycle

    1. 1. Value of Carbon Offsets from Composting and Digester Projects<br />Peter Weisberg<br />Biocycle Global 2011<br />San Diego, CA<br />April 6, 2011<br />
    2. 2.
    3. 3. The Climate Trust<br />Provided $11M in financing to carbon projects<br />Reduced 2.5 million mtCO2-e<br />Offset programs<br />First U.S. state-based compliance program – Oregon<br />First voluntary state program - Colorado<br />First by natural gas-only firm – NW Natural<br />3<br />
    4. 4. Priority project sectors<br />Dairy Digester <br />Organic Waste Digestion<br />Composting<br />Forestry<br />
    5. 5. Carbon Offset “Profit”=<br />(Offsets)(Price) -(Transaction Costs)<br />
    6. 6. Dairy offset revenue- 2,500 cows; digester reduces 8,750 mt CO2e every year<br />$ = (Offsets)(Price) – (Transaction Costs)<br />Price = $6<br />Year 1 Carbon Sales Profit: $10,000<br />Year 2-10 Carbon Sales Profit: $40,000<br />NPV (10 years, 7%) = $250,000<br />
    7. 7. Transaction Costs<br />Project Preparation: $20,000 - $50,000 upfront<br />Verification: $8,000 - $12,000 annually<br />Monitoring equipment: $0 - $15,000 upfront<br />Registry fees: $0.23/credit issued <br />
    8. 8. Importance of Scale<br />Dairy projects need 1,000+ cows<br />Organic waste digestion or composting projects need 15,000+ tons of eligible feedstock per year. Eligible:<br />Post-consumer food waste<br />“Agro-industrial” waste water<br />
    9. 9. California’s Carbon Market<br />Cap-and-trade system begins in 2012<br />Offsets = 8% of compliance<br />1st Period (’12-14) – 39 million offsets<br />2nd Period (‘15-17) – 92 million offsets<br />Air Resource Board approved offsets<br />CAR Livestock (Dairy Digesters)<br />CAR Forestry<br />CAR Ozone Depleting Substances<br />
    10. 10. California Carbon Market: Supply Currently~2.2 million eligible offsets<br />
    11. 11. Carbon Price<br />Air Resource Board Approved:<br />$7 - $9<br />Small transactions, ~25,000 offsets<br />Un-Approved:<br />$3-6<br />Future<br />Legal challenges <br />More protocols<br />
    12. 12. Value of Carbon Credits to Dairy Digester<br />2,500 cow digester<br />~3.5 mt CO2e per cow per year<br />~8,750 mt CO2e reduced<br />
    13. 13. Value of Carbon Credits to Organic Waste Digester<br />40,000 tons of MSW food waste<br />~0.5 mt CO2e per ton of food waste per year<br />~20,000 mt CO2e reduced per year<br />
    14. 14. Thank you!<br />Peter Weisberg<br />Senior Project Analyst<br />The Climate Trust<br />503-238-1915 x207<br />pweisberg@climatetrust.org<br />

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