Understanding GHG Programs, Accounting Protocols and Rules for Generating GHG Revenues for ICT companies

1. The Background to GHG Revenues Understanding GHG Programs, Accounting Protocols and Rules for Generating GHG Revenues Presented By: Tom Baumann CEO ClimateCHECK Director GHG Management Institute Presented To: CANARIE Green IT Ottawa Workshop March 4, 2009 Climate CHECK SET THE STANDARD TM Copyright © Climate Check Corporation. All Rights Reserved.

3. KEY MARKET METRICS $2 trillion to $3 trillion – value of carbon markets by 2015 $500 billion - Value of low-carbon energy markets by 2050 $100 billion - Demand for projects generating GHG emissions credits by 2030 $100 billion - Worldwide investment in clean energy by 2009 $84 billion - Cumulative net savings from energy efficiency in US by 2012 Global carbon market expected to grow 58% in 2008 to $92 billion Voluntary carbon market expected to grow to $5 billion by 2013 $57 trillion - Carbon Disclosure Project signatories, 1000s of companies participating, expanding to supply chain accounting SOURCES: Thomson Reuters, Stern Report, The Climate Group, Deutsche Bank, CDP, Ecosystem Marketplace ClimateCHECK – Set the Standard TM Copyright © Climate Check Corporation. All Rights Reserved.

12. GHG Management Process New Era of Corporate Restructuring Time ROI Strategic Assessment Execution Plan Act and Engage Markets Lead and Set the Standard Inventory Management Commitment, SWOT Analysis, Gap Analysis Supply Chain Carbon footprint Internal GHG Management Team Workshops and Training Internal Actions Carbon Offsets Portfolio and Business Unit Carbon Responsible Products and Programs Energy Efficiency, Renewable Energy GHG Management Systems Branding, Market Share, Shareholder Returns Clean Technologies

17. Classifying GHG emissions Direct and Indirect – Scope 1, 2, 3 Figure Copyright WRI-WBCSD

19. Overview of ISO GHG Standards Life Cycle Framework of ISO 14064-2 Offsite Emission Sources Affected by the Project by Economic Changes (e.g. activity shifting or market transformation, i.e. “leakage”) Onsite Emission Sources Owned/Controlled by the Project Offsite Emission Sources Downstream During the Project Related by Energy or Material Flows (e.g. transportation, product use) Offsite Emission Sources Upstream During the Project Related by Energy or Material Flows (e.g. raw material extraction, transportation) Offsite Emission Sources Upstream Before Project Starts Related to the Project by Energy or Material Flows (e.g., construction, transportation) Offsite Emission Sources Downstream After Project Ends Related to the Project by Energy or Material Flows (e.g. end of life, waste management)

23. Case Study – Renewable Powered Data Center With GHG Regulations (Entity Emissions Regulated) BASELINE/BASE YEAR Non-renewable PROJECT/ ACTION Renewable Onsite Offsite Onsite Excess permits (if baseline back off, no power export) Offsite not regulated for entity. Depending on allocation rules, might get “set aside” permits. Offsite Excess permits (if baseline back off, no power export)

24. Case Study – Renewable Powered Data Center Without GHG Regulations BASELINE/BASE YEAR Non-renewable PROJECT/ ACTION Renewable Onsite Offsite Onsite Voluntary offsets Voluntary offsets Offsite More difficult to get voluntary offsets More difficult to get voluntary offsets