SlideShare a Scribd company logo
Spotlight: Launching Climate Trust Capital
Patrick Maloney, Sean Penrith, and Peter Weisberg
Conservation Finance Practitioner Roundtable
Portland, OR
May 18th, 2016
Building a “Market”, Phases, Deliverables & Roles
Development Emerging Market
Early Market
(scaling)
• Defining the market opportunity
• Developing the cash flows & benefits
flows.
• Defining returns opportunities
• Developing protocols & regulations
• Defining & negotiating the unit of
measure
• Building data and processes to support
the “unit of measure”
• Often involving regulatory
agencies
• Innovation often in an NGO
• First pilots transactions, often one-off
deals
• Modifying & testing the regulations
• Testing the “unit of measure”
• Validating the cash flows, benefits flows
and returns model
• Build market rules - TLC
• Risk assessment
• Returns models and
sources
• Pricing & valuation
• Underwriting standards
• Structures
• Stabilized regulations
• Scalable & repeatable transactions
(market size)
• Defining risk & returns expectations
• Decreased deal friction & transaction
costs
• Multiple entrants along the full value
chain
• Investor becoming educated on the
asset & strategy
• First intermediaries that monitor and
validate the strategy
• NO RETURNS • Return of capital • “Market rate” based on risk & asset
class
• Grants • Grants
• PRI’s
• Impact/mission driven investors
• Credit enhancements & guarantees
• Early adopters in mainstream
• Niche investors
Mainstream
Can you apply this
MODEL to other
examples of market
evolution?
• Micro finance
• Carbon cap-trade
• SIBs
Making a Market:
TLC
• Transparency
• Liquidity
• Consistency
Objective: Moving from emerging/early market to mainstream
3
• Risk mitigation
• Pilot Auction
Facility
• Buyer of last
resorts/put option
contracts
• Bond
guarantees/credit
enhancements
• Buyer
commitments
• Protocol design
Source: 2016 GIIN Annual
Impact Investor Survey
$15.2 billion in impact investing in 2015
4
Trading on our core competency; bullish on carbon
5
Climate Trust model: Late stage projects
Due diligence
Active project management support
Credit generation / commercialization
Special
Purpose
Fund via
CO2
Standard
18 years
Climate Trust Capital: Early stage projects
Due diligence
Active project management support
Credit generation / commercialization
Impact
Capital Fund
2016 >>
What other models could The Climate Trust draw from as it launches a for-profit
investment fund? What resources exist to help non-profits create for-profits?
6
Domestic Carbon Markets – $2.89 billion total demand through 2025
7
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Voluntary and Compliance Market Demand, 2015-2025
Voluntary Market Value Complaince Market Value
California compliance market key assumptions
• California’s cap-and-trade system is extended beyond 2020. From 2021
through 2025, the California Air Resource Board continues to decline the
cap at 2% per year.
• Compliance entities in California purchase offsets to cover only 5% of their
annual compliance obligation (the maximum available to entities is 8%).
• Offsets are traded at an assumed minimum price, discounted 28% from the
estimated regulated floor price for allowances.
Voluntary market key assumptions:
• Demand for voluntary offsets grows at 5% per year.
• Prices start at $5 per voluntary credit in 2015 and grow
by 2% per year to $6.09 in 2025.
California Air Resource
Board Protocols:
1. Livestock digesters
2. Forestry
3. Ozone depleting
substances
4. Coal mine methane
capture
5. Rice cultivation
Climate Action Reserve
Protocols:
1. Grassland conservation
2. Nutrient management
3. Landfill
4. Composting
Verified Carbon Standard
Protocols:
1. Weatherization
2. Campus clean energy
and energy efficiency
3. Wetlands
4. Avoided deforestation
of tropical forests
American Carbon Registry
Protocols:
1. Forestry aggregation
2. Livestock management
3. Compost additions to
grasslands
4. Wetland restoration
5. Carbon capture and
storage
California Compliance Market
$2.18 billion demand through 2025
Voluntary Market
$714 million demand
through 2025
Compliance and Voluntary Carbon Market Supply and Demand
8
Problem: Risk causes lenders to significantly or completely
discount future carbon revenues.
Digester Offset Revenue - $2.09 million
$- $-
$156,276 $164,881 $174,041 $185,145
$198,660
$213,162
$228,723
$245,420
$263,336 $263,336
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
0 1 2 3 4 5 6 7 8 9 10 11
CarbonRevenue
Year
Key risks:
• Market risk. When delivered, what will credits be worth?
• Delivery risk. Will the number of credits anticipated at the
time of investment/lender be delivered?
9
Digester Offset Revenue (CTC Financing) - $1.43 million
Digester Offset Revenue (No CTC Financing) - $2.09 million
$- $-
$156,276 $164,881 $174,041 $185,145 $198,660 $213,162
$228,723
$245,420
$263,336 $263,336
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
0 1 2 3 4 5 6 7 8 9 10 11
CarbonRevenue
Year
$771,050
$- $- $- $- $-
$53,977
$106,581 $114,362 $122,710 $131,668 $131,668
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
0 1 2 3 4 5 6 7 8 9 10 11
CarbonRevenue
Year 10
10
“The data is consistent
with the plucking of
low-hanging fruit, and
also suggests starting
surpluses will drop – if
less dramatically – over
time.”
California Carbon’s “California 2030
Offset Supply Forecast – Forest
Carbon Projects.” December 2015.
Forestry: Focus on bump/flush/surplus projects due to low risk
11
Financial innovation particularly powerful with high-capital cost,
long-term savings projects.
Source: Climate Bonds. Pooling EE/RE Projects. DG Clima. March 2013.
12
Market risk mitigation: Put option or buyer of last resort
13
Climate Trust Capital
(fund)
The
Climate
Trust
(NGO)
Packard
Foundation CTC receives a put-option to sell
credits at a minimum over the ten year
life of the fund.
Commitment to Purchase
AgreementLoan Agreement
Project
1
Project
2
Project
4
Project
3
Project
5
Carbon Investment Agreements
Market risk mitigation: Put option gives Climate Trust Capital
the right, but not the obligation, to sell verified credits to The
Climate Trust at $6/credit.
14
Fund Concept: Finance projects that will rely upon revenues
from carbon markets.
Problem: Lenders are unwilling to value revenues from carbon markets (and require projects to
be profitable in their absence). Forestry, biogas, and agricultural projects therefore struggle to
raise the necessary capital to build and develop new projects.
Solution: Climate Trust Capital will finance projects that will depend upon revenues from
carbon markets, through an upfront investment.
15
Financing Tool: Upfront investment based on anticipated carbon
credit generation.
• Guarantee minimum carbon value.
• Revenue share rewards project developers as carbon prices increase.
Investment
• Climate Trust Capital “pre-purchases” ten years of the carbon offsets a
project is anticipated to generate.
• Capital is made available upfront for the construction of new projects.
Active
management
• Climate Trust Capital will work with a project to
develop a carbon monitoring plan and
commercialize credits.
Revenue
share
• After carbon sales have repaid the pre-purchase,
50% of future carbon revenues are paid to the
project and 50% are paid to Climate Trust Capital
and its investors.
16
Digester Offset Revenue (CTC Financing) - $1.43 million
Digester Offset Revenue (No CTC Financing) - $2.09 million
$- $-
$156,276 $164,881 $174,041 $185,145 $198,660 $213,162
$228,723
$245,420
$263,336 $263,336
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
0 1 2 3 4 5 6 7 8 9 10 11
CarbonRevenue
Year
$771,050
$- $- $- $- $-
$53,977
$106,581 $114,362 $122,710 $131,668 $131,668
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
0 1 2 3 4 5 6 7 8 9 10 11
CarbonRevenue
Year 17
17
Value Proposition: Manage the long-term execution and market
risks associated with nascent carbon markets.
Market Risk Mitigation. Investments guarantee a minimum value for carbon credits over the 10
year crediting period of a project.
• Allows projects to leverage The Climate Trust’s existing programs, which have $22 million under
management and must purchase and retire credits regardless of what happens in emerging
markets.
Execution Risk Mitigation. We develop a carbon monitoring plan that sets up the methods for
data collection, data aggregation and verification. We then commercialize credits on behalf of the
project in the compliance and voluntary markets.
• Monitoring plan allows projects to benefit from The Climate Trust’s 18 years of experience
investing in and managing offset projects.
• Commercialization gives project developers access to The Climate Trust’s existing buyer network.
Projects benefit from portfolio approach since this aggregation minimizes risks (execution &
invalidation) that buyers currently face.
18
Grassland conservation: Place prairie under an imminent threat of conversion into
cropland under a conservation easement.
Source: Climate Action Reserve, revised 2015. Evaluation of Avoided Grassland
Conversion and Cropland Conversion to Grassland as Potential Carbon Offset
Project Types.
1Assumes linear growth such that 30% of acres converted every year into cropland are instead conserved by 2025.
Climate benefit Enhanced carbon
sequestration in soils.
Carbon market Voluntary market (does
not yet qualify for
California compliance)
Anticipated greenhouse
gas reduction associated
with new projects1 built
between 2015 and 2025
902,564 mtCO2e
Greenhouse gas
reductions purchased by
The Climate Trust to date
39,384 mt CO2e
What types of forestry projects are likely to find turning long-term carbon revenues
into upfront capital attractive? Should Climate Trust Capital target land acquisition,
avoided conversion projects, projects that are currently at common practice values? 19
Target: Scale fund investments to be directed at identified sectors
Goals:
1. Pilot $15 million fund
2. Scale to a $100 million fund
3. Reduce 20 million tons of
greenhouse gas emissions
4. Demonstrate carbon offsets are
an investible and reliable asset
class
Conservation Finance Gap. Credit Suisse estimates the quantity of conservation
finance must multiply by 20 to 30 times to meet global conservation needs.
Source: Credit Suisse, World Wildlife Fund, McKinsey. Conservation Finance.
January 2014.
20
Mitigating Delivery Risk: Protocols are public goods, and
therefore require significant investment of public dollars.
21
American Carbon Registry’s “Avoided Conservation of
Grasslands” relies on Denitrificiation-Decomposition
Biogeochemical Process Model
Climate Action Reserve’s “Grasslands Protocol” does
modeling for US, provides lookup table
(Development and implementation of both protocols supported by Conservation Innovation Grants)
Future Symbiotic Structure
The Climate Trust
Climate Trust Capital
Investments made in
environmental credits
Fund 1, 2, 3 ….
Technical Assistance
Debt & equity
investors
Foundation,
philanthropic,
grant support
Development
Facility
Project 1
Project 2
Project 3
Project 4LLC
NGO
New sector development
Sector 1
Sector 2
….......
What division of roles have worked well/poorly between non-profits and for-profits? What financial
relationships have worked well/poorly?
23
Mitigating Market Risk: Replace grant funding with market risk
mitigation like buyers of last resort.
24
What opportunities exist to replicate World Bank’s Pilot Auction Facility
for domestic environmental markets in the United States? 25
Expanding Voluntary Buyer Commitment: Council on
Environmental Quality
26
Executive Order 13693 (March 2015):
Federal agencies must reduce GHG emissions 40% below 2008 levels by 2025.
CEQ Guidance on Federal GHG Accounting and Reporting (June 2012)
“… carbon offsets are not allowed to be applied as an adjusted against a Federal agency’s
emissions... More time and deliberate focus is necessary to understand how the market
for carbon offsets and use of those offsets could be applied consistently across the
Federal community.”
Allowing agencies to meet 8% of the anticipated reductions using offsets (rather than just
RECs) could grow the voluntary market by 15% (~1.35 million offsets per year).
Grassland conservation: Place prairie under an imminent threat of conversion into
cropland under a conservation easement.
Source: Climate Action Reserve, revised 2015. Evaluation of Avoided Grassland
Conversion and Cropland Conversion to Grassland as Potential Carbon Offset
Project Types.
1Assumes linear growth such that 30% of acres converted every year into cropland are instead conserved by 2025.
Climate benefit Enhanced carbon
sequestration in soils.
Carbon market Voluntary market (does
not yet qualify for
California compliance)
Anticipated greenhouse
gas reduction associated
with new projects1 built
between 2015 and 2025
902,564 mtCO2e
Greenhouse gas
reductions purchased by
The Climate Trust to date
39,384 mt CO2e
If federal agencies are enabled to buy offsets to meet reduction
requirements, in what way should they structure their program to
generate the largest impact? 27
Creative Instruments/approaches
28
• Green (ASB) bonds
• PRI syndicated put option/bond guarantee
• NGO cooperative bond issuance
• EPA CWA SRF guarantee facility
Carbon price is an indication of the ambition of a cap-and-trade
system
29
Source: Jenkins and Karplus. “Carbon pricing
under binding political constraints.” WIDER
Working Paper. April 2016.
THANK YOU!
Peter Weisberg
Senior Investment Manager
The Climate Trust
pweisberg@climatetrust.org
(503)238-1915 x207

More Related Content

What's hot

The Role of Renewable Natural Gas in State Climate Policy
The Role of Renewable Natural Gas in State Climate PolicyThe Role of Renewable Natural Gas in State Climate Policy
The Role of Renewable Natural Gas in State Climate Policy
World Resources Institute (WRI)
 
Carbon finance in ld cs hedon - public
Carbon finance in ld cs   hedon - publicCarbon finance in ld cs   hedon - public
Carbon finance in ld cs hedon - public
Hedon Energy
 
Alex wood Presentation - Continental Divide? Canadian and US Views on Energy ...
Alex wood Presentation - Continental Divide? Canadian and US Views on Energy ...Alex wood Presentation - Continental Divide? Canadian and US Views on Energy ...
Alex wood Presentation - Continental Divide? Canadian and US Views on Energy ...
Sustainable Prosperity
 
Science Based Target Setting for Financial Institutions
Science Based Target Setting for Financial InstitutionsScience Based Target Setting for Financial Institutions
Science Based Target Setting for Financial Institutions
World Resources Institute (WRI)
 
Economic Instruments for Ecosystem Services in Canada
Economic Instruments for Ecosystem Services in CanadaEconomic Instruments for Ecosystem Services in Canada
Economic Instruments for Ecosystem Services in Canada
Sustainable Prosperity
 
Utilizing carbon Finance for Eenergy Development
Utilizing carbon Finance for Eenergy DevelopmentUtilizing carbon Finance for Eenergy Development
Utilizing carbon Finance for Eenergy Development
Dr. Oliver Massmann
 
Shaping the Role of Solar In Utility Planning to Advance Customer Clean Energ...
Shaping the Role of Solar In Utility Planning to Advance Customer Clean Energ...Shaping the Role of Solar In Utility Planning to Advance Customer Clean Energ...
Shaping the Role of Solar In Utility Planning to Advance Customer Clean Energ...
World Resources Institute (WRI)
 
Integrating Customer Clean Energy Demand Into Utility Planning
Integrating Customer Clean Energy Demand Into Utility PlanningIntegrating Customer Clean Energy Demand Into Utility Planning
Integrating Customer Clean Energy Demand Into Utility Planning
World Resources Institute (WRI)
 
Fostering a Regional Green Economy: Municipal Roles and Others’ Responsibilit...
Fostering a Regional Green Economy: Municipal Roles and Others’ Responsibilit...Fostering a Regional Green Economy: Municipal Roles and Others’ Responsibilit...
Fostering a Regional Green Economy: Municipal Roles and Others’ Responsibilit...
Sustainable Prosperity
 
Community Energy Planning: Broadening the Business Case
Community Energy Planning: Broadening the Business CaseCommunity Energy Planning: Broadening the Business Case
Community Energy Planning: Broadening the Business Case
Sustainable Prosperity
 
State of Climate Action: Assessing Progress Toward 2030 and 2050
State of Climate Action: Assessing Progress Toward 2030 and 2050State of Climate Action: Assessing Progress Toward 2030 and 2050
State of Climate Action: Assessing Progress Toward 2030 and 2050
World Resources Institute (WRI)
 
The Canada We Want in 2020: Squaring the Carbon Circle
The Canada We Want in 2020: Squaring the Carbon CircleThe Canada We Want in 2020: Squaring the Carbon Circle
The Canada We Want in 2020: Squaring the Carbon Circle
Sustainable Prosperity
 
Bending the Curve Together: Leveraging Common Goals in Utility Resource Plann...
Bending the Curve Together: Leveraging Common Goals in Utility Resource Plann...Bending the Curve Together: Leveraging Common Goals in Utility Resource Plann...
Bending the Curve Together: Leveraging Common Goals in Utility Resource Plann...
World Resources Institute (WRI)
 
Carbon management in Southern Water may 2020 Emma Bennett
Carbon management in Southern Water may 2020 Emma BennettCarbon management in Southern Water may 2020 Emma Bennett
Carbon management in Southern Water may 2020 Emma Bennett
Sussex Wildlife Trust
 
Climate Change Update: What Lies Beyond GHG Reporting for the Lead Industry
Climate Change Update: What Lies Beyond GHG Reporting for the Lead IndustryClimate Change Update: What Lies Beyond GHG Reporting for the Lead Industry
Climate Change Update: What Lies Beyond GHG Reporting for the Lead Industry
All4 Inc.
 
Penrith - Oregon Carbon Policy Options for Legislators-150911-CAM
Penrith - Oregon Carbon Policy Options for Legislators-150911-CAMPenrith - Oregon Carbon Policy Options for Legislators-150911-CAM
Penrith - Oregon Carbon Policy Options for Legislators-150911-CAM
Sean Penrith
 
Greening the Economy Federal-Municipal Policy Alignment
Greening the Economy Federal-Municipal Policy AlignmentGreening the Economy Federal-Municipal Policy Alignment
Greening the Economy Federal-Municipal Policy Alignment
Sustainable Prosperity
 
Session 1 yamaguchi oecd regional trade agreements and the environment
Session 1 yamaguchi oecd   regional trade agreements and the environmentSession 1 yamaguchi oecd   regional trade agreements and the environment
Session 1 yamaguchi oecd regional trade agreements and the environment
OECD Environment
 
Mark Jaccard SP SP Speaker Series: Climate Policy in Canada - Issues in Regio...
Mark Jaccard SP SP Speaker Series: Climate Policy in Canada - Issues in Regio...Mark Jaccard SP SP Speaker Series: Climate Policy in Canada - Issues in Regio...
Mark Jaccard SP SP Speaker Series: Climate Policy in Canada - Issues in Regio...
Sustainable Prosperity
 
Biodiesel: An Alternative Fuel to reduce CO2
Biodiesel: An Alternative Fuel to reduce CO2Biodiesel: An Alternative Fuel to reduce CO2
Biodiesel: An Alternative Fuel to reduce CO2
cintharansy
 

What's hot (20)

The Role of Renewable Natural Gas in State Climate Policy
The Role of Renewable Natural Gas in State Climate PolicyThe Role of Renewable Natural Gas in State Climate Policy
The Role of Renewable Natural Gas in State Climate Policy
 
Carbon finance in ld cs hedon - public
Carbon finance in ld cs   hedon - publicCarbon finance in ld cs   hedon - public
Carbon finance in ld cs hedon - public
 
Alex wood Presentation - Continental Divide? Canadian and US Views on Energy ...
Alex wood Presentation - Continental Divide? Canadian and US Views on Energy ...Alex wood Presentation - Continental Divide? Canadian and US Views on Energy ...
Alex wood Presentation - Continental Divide? Canadian and US Views on Energy ...
 
Science Based Target Setting for Financial Institutions
Science Based Target Setting for Financial InstitutionsScience Based Target Setting for Financial Institutions
Science Based Target Setting for Financial Institutions
 
Economic Instruments for Ecosystem Services in Canada
Economic Instruments for Ecosystem Services in CanadaEconomic Instruments for Ecosystem Services in Canada
Economic Instruments for Ecosystem Services in Canada
 
Utilizing carbon Finance for Eenergy Development
Utilizing carbon Finance for Eenergy DevelopmentUtilizing carbon Finance for Eenergy Development
Utilizing carbon Finance for Eenergy Development
 
Shaping the Role of Solar In Utility Planning to Advance Customer Clean Energ...
Shaping the Role of Solar In Utility Planning to Advance Customer Clean Energ...Shaping the Role of Solar In Utility Planning to Advance Customer Clean Energ...
Shaping the Role of Solar In Utility Planning to Advance Customer Clean Energ...
 
Integrating Customer Clean Energy Demand Into Utility Planning
Integrating Customer Clean Energy Demand Into Utility PlanningIntegrating Customer Clean Energy Demand Into Utility Planning
Integrating Customer Clean Energy Demand Into Utility Planning
 
Fostering a Regional Green Economy: Municipal Roles and Others’ Responsibilit...
Fostering a Regional Green Economy: Municipal Roles and Others’ Responsibilit...Fostering a Regional Green Economy: Municipal Roles and Others’ Responsibilit...
Fostering a Regional Green Economy: Municipal Roles and Others’ Responsibilit...
 
Community Energy Planning: Broadening the Business Case
Community Energy Planning: Broadening the Business CaseCommunity Energy Planning: Broadening the Business Case
Community Energy Planning: Broadening the Business Case
 
State of Climate Action: Assessing Progress Toward 2030 and 2050
State of Climate Action: Assessing Progress Toward 2030 and 2050State of Climate Action: Assessing Progress Toward 2030 and 2050
State of Climate Action: Assessing Progress Toward 2030 and 2050
 
The Canada We Want in 2020: Squaring the Carbon Circle
The Canada We Want in 2020: Squaring the Carbon CircleThe Canada We Want in 2020: Squaring the Carbon Circle
The Canada We Want in 2020: Squaring the Carbon Circle
 
Bending the Curve Together: Leveraging Common Goals in Utility Resource Plann...
Bending the Curve Together: Leveraging Common Goals in Utility Resource Plann...Bending the Curve Together: Leveraging Common Goals in Utility Resource Plann...
Bending the Curve Together: Leveraging Common Goals in Utility Resource Plann...
 
Carbon management in Southern Water may 2020 Emma Bennett
Carbon management in Southern Water may 2020 Emma BennettCarbon management in Southern Water may 2020 Emma Bennett
Carbon management in Southern Water may 2020 Emma Bennett
 
Climate Change Update: What Lies Beyond GHG Reporting for the Lead Industry
Climate Change Update: What Lies Beyond GHG Reporting for the Lead IndustryClimate Change Update: What Lies Beyond GHG Reporting for the Lead Industry
Climate Change Update: What Lies Beyond GHG Reporting for the Lead Industry
 
Penrith - Oregon Carbon Policy Options for Legislators-150911-CAM
Penrith - Oregon Carbon Policy Options for Legislators-150911-CAMPenrith - Oregon Carbon Policy Options for Legislators-150911-CAM
Penrith - Oregon Carbon Policy Options for Legislators-150911-CAM
 
Greening the Economy Federal-Municipal Policy Alignment
Greening the Economy Federal-Municipal Policy AlignmentGreening the Economy Federal-Municipal Policy Alignment
Greening the Economy Federal-Municipal Policy Alignment
 
Session 1 yamaguchi oecd regional trade agreements and the environment
Session 1 yamaguchi oecd   regional trade agreements and the environmentSession 1 yamaguchi oecd   regional trade agreements and the environment
Session 1 yamaguchi oecd regional trade agreements and the environment
 
Mark Jaccard SP SP Speaker Series: Climate Policy in Canada - Issues in Regio...
Mark Jaccard SP SP Speaker Series: Climate Policy in Canada - Issues in Regio...Mark Jaccard SP SP Speaker Series: Climate Policy in Canada - Issues in Regio...
Mark Jaccard SP SP Speaker Series: Climate Policy in Canada - Issues in Regio...
 
Biodiesel: An Alternative Fuel to reduce CO2
Biodiesel: An Alternative Fuel to reduce CO2Biodiesel: An Alternative Fuel to reduce CO2
Biodiesel: An Alternative Fuel to reduce CO2
 

Similar to Climate Trust Capital Spotlight

Green bonds
Green bonds Green bonds
Green bonds
Jacqueline Yujia Tao
 
Connecticut Green Bank Stakeholder Webinar Quarter 4 FY17
Connecticut Green Bank Stakeholder Webinar Quarter 4 FY17Connecticut Green Bank Stakeholder Webinar Quarter 4 FY17
Connecticut Green Bank Stakeholder Webinar Quarter 4 FY17
RudySturkCGB
 
A Public Private Partnership Approch to Climate Finance
A Public Private Partnership Approch to Climate FinanceA Public Private Partnership Approch to Climate Finance
A Public Private Partnership Approch to Climate Finance
Aldo Baietti
 
presentation on voluntary carbon market.pptx
presentation on voluntary carbon market.pptxpresentation on voluntary carbon market.pptx
presentation on voluntary carbon market.pptx
Sahil731850
 
UC-PNC Outlook: Debt Markets - Port Authority tools
UC-PNC Outlook: Debt Markets - Port Authority toolsUC-PNC Outlook: Debt Markets - Port Authority tools
UC-PNC Outlook: Debt Markets - Port Authority tools
The Port
 
WestRiver Group-2.pptx
WestRiver Group-2.pptxWestRiver Group-2.pptx
WestRiver Group-2.pptx
raazia gul
 
HUB:BLE-1 Boosting Local Enterprise - Business Advice
HUB:BLE-1 Boosting Local Enterprise - Business AdviceHUB:BLE-1 Boosting Local Enterprise - Business Advice
HUB:BLE-1 Boosting Local Enterprise - Business Advice
Space IDEAS Hub
 
THE CURRENT STATE OF TAX EQUITY INVESTMENT IN CCUS PROJECTS
THE CURRENT STATE OF TAX EQUITY INVESTMENT IN CCUS PROJECTSTHE CURRENT STATE OF TAX EQUITY INVESTMENT IN CCUS PROJECTS
THE CURRENT STATE OF TAX EQUITY INVESTMENT IN CCUS PROJECTS
iQHub
 
Webinar: Financing large scale integrated CCS projects
Webinar: Financing large scale integrated CCS projectsWebinar: Financing large scale integrated CCS projects
Webinar: Financing large scale integrated CCS projects
Global CCS Institute
 
Transaction Capital: 2012 Annual Results Presentation
Transaction Capital: 2012 Annual Results PresentationTransaction Capital: 2012 Annual Results Presentation
Transaction Capital: 2012 Annual Results Presentation
Transaction Capital
 
DPBCapitalOutlayPPT_832015
DPBCapitalOutlayPPT_832015DPBCapitalOutlayPPT_832015
DPBCapitalOutlayPPT_832015
Liliana Judge
 
Leverging Public and Private Investment for Nonpoint Source Pollution Prevent...
Leverging Public and Private Investment for Nonpoint Source Pollution Prevent...Leverging Public and Private Investment for Nonpoint Source Pollution Prevent...
Leverging Public and Private Investment for Nonpoint Source Pollution Prevent...
Tony Uhl
 
Thermal Energy AGM 2021
Thermal Energy AGM 2021Thermal Energy AGM 2021
Thermal Energy AGM 2021
Marketing847413
 
Lode verstraeten kbc bank agoria presentation v15
Lode verstraeten kbc bank agoria presentation v15Lode verstraeten kbc bank agoria presentation v15
Lode verstraeten kbc bank agoria presentation v15
Agoria
 
Investor deck (fy17 q2) final
Investor deck (fy17 q2) finalInvestor deck (fy17 q2) final
Investor deck (fy17 q2) final
cloroxir2016
 
Investor deck (fy17 q2) final v2
Investor deck (fy17 q2) final v2Investor deck (fy17 q2) final v2
Investor deck (fy17 q2) final v2
cloroxir2016
 
Green Bank Prodcuts - Residential Solar
Green Bank Prodcuts - Residential SolarGreen Bank Prodcuts - Residential Solar
Green Bank Prodcuts - Residential Solar
Reed Hundt
 
Green Bank Products - Residential Solar
Green Bank Products - Residential SolarGreen Bank Products - Residential Solar
Green Bank Products - Residential Solar
CGC CGC
 
Cross Whitehall Prosperity Framework | Supplier Engagement
Cross Whitehall Prosperity Framework | Supplier Engagement Cross Whitehall Prosperity Framework | Supplier Engagement
Cross Whitehall Prosperity Framework | Supplier Engagement
UKinBrazilNetwork
 
8th Strategic Dialogue of the CMP - Jane Ellis, OECD
8th Strategic Dialogue of the CMP - Jane Ellis, OECD8th Strategic Dialogue of the CMP - Jane Ellis, OECD
8th Strategic Dialogue of the CMP - Jane Ellis, OECD
OECD Environment
 

Similar to Climate Trust Capital Spotlight (20)

Green bonds
Green bonds Green bonds
Green bonds
 
Connecticut Green Bank Stakeholder Webinar Quarter 4 FY17
Connecticut Green Bank Stakeholder Webinar Quarter 4 FY17Connecticut Green Bank Stakeholder Webinar Quarter 4 FY17
Connecticut Green Bank Stakeholder Webinar Quarter 4 FY17
 
A Public Private Partnership Approch to Climate Finance
A Public Private Partnership Approch to Climate FinanceA Public Private Partnership Approch to Climate Finance
A Public Private Partnership Approch to Climate Finance
 
presentation on voluntary carbon market.pptx
presentation on voluntary carbon market.pptxpresentation on voluntary carbon market.pptx
presentation on voluntary carbon market.pptx
 
UC-PNC Outlook: Debt Markets - Port Authority tools
UC-PNC Outlook: Debt Markets - Port Authority toolsUC-PNC Outlook: Debt Markets - Port Authority tools
UC-PNC Outlook: Debt Markets - Port Authority tools
 
WestRiver Group-2.pptx
WestRiver Group-2.pptxWestRiver Group-2.pptx
WestRiver Group-2.pptx
 
HUB:BLE-1 Boosting Local Enterprise - Business Advice
HUB:BLE-1 Boosting Local Enterprise - Business AdviceHUB:BLE-1 Boosting Local Enterprise - Business Advice
HUB:BLE-1 Boosting Local Enterprise - Business Advice
 
THE CURRENT STATE OF TAX EQUITY INVESTMENT IN CCUS PROJECTS
THE CURRENT STATE OF TAX EQUITY INVESTMENT IN CCUS PROJECTSTHE CURRENT STATE OF TAX EQUITY INVESTMENT IN CCUS PROJECTS
THE CURRENT STATE OF TAX EQUITY INVESTMENT IN CCUS PROJECTS
 
Webinar: Financing large scale integrated CCS projects
Webinar: Financing large scale integrated CCS projectsWebinar: Financing large scale integrated CCS projects
Webinar: Financing large scale integrated CCS projects
 
Transaction Capital: 2012 Annual Results Presentation
Transaction Capital: 2012 Annual Results PresentationTransaction Capital: 2012 Annual Results Presentation
Transaction Capital: 2012 Annual Results Presentation
 
DPBCapitalOutlayPPT_832015
DPBCapitalOutlayPPT_832015DPBCapitalOutlayPPT_832015
DPBCapitalOutlayPPT_832015
 
Leverging Public and Private Investment for Nonpoint Source Pollution Prevent...
Leverging Public and Private Investment for Nonpoint Source Pollution Prevent...Leverging Public and Private Investment for Nonpoint Source Pollution Prevent...
Leverging Public and Private Investment for Nonpoint Source Pollution Prevent...
 
Thermal Energy AGM 2021
Thermal Energy AGM 2021Thermal Energy AGM 2021
Thermal Energy AGM 2021
 
Lode verstraeten kbc bank agoria presentation v15
Lode verstraeten kbc bank agoria presentation v15Lode verstraeten kbc bank agoria presentation v15
Lode verstraeten kbc bank agoria presentation v15
 
Investor deck (fy17 q2) final
Investor deck (fy17 q2) finalInvestor deck (fy17 q2) final
Investor deck (fy17 q2) final
 
Investor deck (fy17 q2) final v2
Investor deck (fy17 q2) final v2Investor deck (fy17 q2) final v2
Investor deck (fy17 q2) final v2
 
Green Bank Prodcuts - Residential Solar
Green Bank Prodcuts - Residential SolarGreen Bank Prodcuts - Residential Solar
Green Bank Prodcuts - Residential Solar
 
Green Bank Products - Residential Solar
Green Bank Products - Residential SolarGreen Bank Products - Residential Solar
Green Bank Products - Residential Solar
 
Cross Whitehall Prosperity Framework | Supplier Engagement
Cross Whitehall Prosperity Framework | Supplier Engagement Cross Whitehall Prosperity Framework | Supplier Engagement
Cross Whitehall Prosperity Framework | Supplier Engagement
 
8th Strategic Dialogue of the CMP - Jane Ellis, OECD
8th Strategic Dialogue of the CMP - Jane Ellis, OECD8th Strategic Dialogue of the CMP - Jane Ellis, OECD
8th Strategic Dialogue of the CMP - Jane Ellis, OECD
 

More from The Climate Trust

Biogas as Vehicle Fuel
Biogas as Vehicle FuelBiogas as Vehicle Fuel
Biogas as Vehicle Fuel
The Climate Trust
 
Nitrogen fertilizer reduction for Dianchi Lake in China
Nitrogen fertilizer reduction for Dianchi Lake in ChinaNitrogen fertilizer reduction for Dianchi Lake in China
Nitrogen fertilizer reduction for Dianchi Lake in China
The Climate Trust
 
Oregon's Clean Fuels Program and Biogas
Oregon's Clean Fuels Program and BiogasOregon's Clean Fuels Program and Biogas
Oregon's Clean Fuels Program and Biogas
The Climate Trust
 
Environmental Markets and Biogas: Valuing Climate Benefits
Environmental Markets and Biogas: Valuing Climate BenefitsEnvironmental Markets and Biogas: Valuing Climate Benefits
Environmental Markets and Biogas: Valuing Climate Benefits
The Climate Trust
 
Understanding Compliance and Market Options for Transportation Fuels
Understanding Compliance and Market Options for Transportation FuelsUnderstanding Compliance and Market Options for Transportation Fuels
Understanding Compliance and Market Options for Transportation Fuels
The Climate Trust
 
Five Year Report Presentation to Oregon Energy Facility Siting Council
Five Year Report Presentation to Oregon Energy Facility Siting CouncilFive Year Report Presentation to Oregon Energy Facility Siting Council
Five Year Report Presentation to Oregon Energy Facility Siting Council
The Climate Trust
 
Tct 2014 5 yr report presentation 141110-cam
Tct 2014 5 yr report presentation 141110-camTct 2014 5 yr report presentation 141110-cam
Tct 2014 5 yr report presentation 141110-cam
The Climate Trust
 
Passive Building, Carbon and Climate
Passive Building, Carbon and ClimatePassive Building, Carbon and Climate
Passive Building, Carbon and Climate
The Climate Trust
 
Carbon Pricing Options for Oregon
Carbon Pricing Options for OregonCarbon Pricing Options for Oregon
Carbon Pricing Options for Oregon
The Climate Trust
 
Emerging Opportunities with the Low Carbon Fuel Standard
Emerging Opportunities with the Low Carbon Fuel StandardEmerging Opportunities with the Low Carbon Fuel Standard
Emerging Opportunities with the Low Carbon Fuel Standard
The Climate Trust
 
Carbon Markets for Landowners
Carbon Markets for LandownersCarbon Markets for Landowners
Carbon Markets for Landowners
The Climate Trust
 

More from The Climate Trust (11)

Biogas as Vehicle Fuel
Biogas as Vehicle FuelBiogas as Vehicle Fuel
Biogas as Vehicle Fuel
 
Nitrogen fertilizer reduction for Dianchi Lake in China
Nitrogen fertilizer reduction for Dianchi Lake in ChinaNitrogen fertilizer reduction for Dianchi Lake in China
Nitrogen fertilizer reduction for Dianchi Lake in China
 
Oregon's Clean Fuels Program and Biogas
Oregon's Clean Fuels Program and BiogasOregon's Clean Fuels Program and Biogas
Oregon's Clean Fuels Program and Biogas
 
Environmental Markets and Biogas: Valuing Climate Benefits
Environmental Markets and Biogas: Valuing Climate BenefitsEnvironmental Markets and Biogas: Valuing Climate Benefits
Environmental Markets and Biogas: Valuing Climate Benefits
 
Understanding Compliance and Market Options for Transportation Fuels
Understanding Compliance and Market Options for Transportation FuelsUnderstanding Compliance and Market Options for Transportation Fuels
Understanding Compliance and Market Options for Transportation Fuels
 
Five Year Report Presentation to Oregon Energy Facility Siting Council
Five Year Report Presentation to Oregon Energy Facility Siting CouncilFive Year Report Presentation to Oregon Energy Facility Siting Council
Five Year Report Presentation to Oregon Energy Facility Siting Council
 
Tct 2014 5 yr report presentation 141110-cam
Tct 2014 5 yr report presentation 141110-camTct 2014 5 yr report presentation 141110-cam
Tct 2014 5 yr report presentation 141110-cam
 
Passive Building, Carbon and Climate
Passive Building, Carbon and ClimatePassive Building, Carbon and Climate
Passive Building, Carbon and Climate
 
Carbon Pricing Options for Oregon
Carbon Pricing Options for OregonCarbon Pricing Options for Oregon
Carbon Pricing Options for Oregon
 
Emerging Opportunities with the Low Carbon Fuel Standard
Emerging Opportunities with the Low Carbon Fuel StandardEmerging Opportunities with the Low Carbon Fuel Standard
Emerging Opportunities with the Low Carbon Fuel Standard
 
Carbon Markets for Landowners
Carbon Markets for LandownersCarbon Markets for Landowners
Carbon Markets for Landowners
 

Recently uploaded

Abortion pills in Muscat(+918133066128) Cytotec pills buy Oman
Abortion pills in Muscat(+918133066128) Cytotec pills buy OmanAbortion pills in Muscat(+918133066128) Cytotec pills buy Oman
Abortion pills in Muscat(+918133066128) Cytotec pills buy Oman
maishakhanam230
 
Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]
Commonwealth
 
Scam 1992 Harshad mehta scam pdf download
Scam 1992 Harshad mehta scam pdf downloadScam 1992 Harshad mehta scam pdf download
Scam 1992 Harshad mehta scam pdf download
bharatbharatjangid46
 
Cornell University degree offer diploma Transcript
Cornell University degree offer diploma TranscriptCornell University degree offer diploma Transcript
Cornell University degree offer diploma Transcript
yyfabne
 
Integration PowerPoint covering various areas
Integration PowerPoint covering various areasIntegration PowerPoint covering various areas
Integration PowerPoint covering various areas
Vaidyanathan11
 
Girls Call DN Nagar 9910780858 Provide Best And Top Girl Service And No1 in City
Girls Call DN Nagar 9910780858 Provide Best And Top Girl Service And No1 in CityGirls Call DN Nagar 9910780858 Provide Best And Top Girl Service And No1 in City
Girls Call DN Nagar 9910780858 Provide Best And Top Girl Service And No1 in City
margaretblush
 
University of California, Irvine degree offer diploma Transcript
University of California, Irvine degree offer diploma TranscriptUniversity of California, Irvine degree offer diploma Transcript
University of California, Irvine degree offer diploma Transcript
yyfabne
 
AI.It's simple to believe artificial intelligence (AI) has the solution to ev...
AI.It's simple to believe artificial intelligence (AI) has the solution to ev...AI.It's simple to believe artificial intelligence (AI) has the solution to ev...
AI.It's simple to believe artificial intelligence (AI) has the solution to ev...
Thailand Appreciative Inquiry Network
 
Amul Milk: From there to here to being everywhere
Amul Milk: From there to here to being everywhereAmul Milk: From there to here to being everywhere
Amul Milk: From there to here to being everywhere
chetankumar9855
 
ppt on Review of literature 1720335948098.pptx
ppt on Review of literature 1720335948098.pptxppt on Review of literature 1720335948098.pptx
ppt on Review of literature 1720335948098.pptx
coolpool363
 
Northeastern University degree offer diploma Transcript
Northeastern University degree offer diploma TranscriptNortheastern University degree offer diploma Transcript
Northeastern University degree offer diploma Transcript
oywfdy
 
05 BBA 20 23 Sem IV POM Forecasting Methods.pptx
05 BBA 20 23 Sem IV  POM Forecasting Methods.pptx05 BBA 20 23 Sem IV  POM Forecasting Methods.pptx
05 BBA 20 23 Sem IV POM Forecasting Methods.pptx
drsouravpanda27
 
https://silverone.com/investors/presentations/
https://silverone.com/investors/presentations/https://silverone.com/investors/presentations/
https://silverone.com/investors/presentations/
Adnet Communications
 
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
Ak47
 
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptxOAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
hiddenlevers
 
Manchester University diploma
 Manchester University diploma Manchester University diploma
Manchester University diploma
ewopzo
 
Purdue University System degree offer diploma Transcript
Purdue University System degree offer diploma TranscriptPurdue University System degree offer diploma Transcript
Purdue University System degree offer diploma Transcript
oywfdy
 
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
amzhoxvzidbke
 
Introduction to Islamic Banking and Finance.Part3
Introduction to Islamic Banking and Finance.Part3Introduction to Islamic Banking and Finance.Part3
Introduction to Islamic Banking and Finance.Part3
NasrudinMohamedAhmed
 
GUIA_LEGAL_CHAPTER-13_ACCOUNTING REGULATION.pdf
GUIA_LEGAL_CHAPTER-13_ACCOUNTING REGULATION.pdfGUIA_LEGAL_CHAPTER-13_ACCOUNTING REGULATION.pdf
GUIA_LEGAL_CHAPTER-13_ACCOUNTING REGULATION.pdf
ProexportColombia1
 

Recently uploaded (20)

Abortion pills in Muscat(+918133066128) Cytotec pills buy Oman
Abortion pills in Muscat(+918133066128) Cytotec pills buy OmanAbortion pills in Muscat(+918133066128) Cytotec pills buy Oman
Abortion pills in Muscat(+918133066128) Cytotec pills buy Oman
 
Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]
 
Scam 1992 Harshad mehta scam pdf download
Scam 1992 Harshad mehta scam pdf downloadScam 1992 Harshad mehta scam pdf download
Scam 1992 Harshad mehta scam pdf download
 
Cornell University degree offer diploma Transcript
Cornell University degree offer diploma TranscriptCornell University degree offer diploma Transcript
Cornell University degree offer diploma Transcript
 
Integration PowerPoint covering various areas
Integration PowerPoint covering various areasIntegration PowerPoint covering various areas
Integration PowerPoint covering various areas
 
Girls Call DN Nagar 9910780858 Provide Best And Top Girl Service And No1 in City
Girls Call DN Nagar 9910780858 Provide Best And Top Girl Service And No1 in CityGirls Call DN Nagar 9910780858 Provide Best And Top Girl Service And No1 in City
Girls Call DN Nagar 9910780858 Provide Best And Top Girl Service And No1 in City
 
University of California, Irvine degree offer diploma Transcript
University of California, Irvine degree offer diploma TranscriptUniversity of California, Irvine degree offer diploma Transcript
University of California, Irvine degree offer diploma Transcript
 
AI.It's simple to believe artificial intelligence (AI) has the solution to ev...
AI.It's simple to believe artificial intelligence (AI) has the solution to ev...AI.It's simple to believe artificial intelligence (AI) has the solution to ev...
AI.It's simple to believe artificial intelligence (AI) has the solution to ev...
 
Amul Milk: From there to here to being everywhere
Amul Milk: From there to here to being everywhereAmul Milk: From there to here to being everywhere
Amul Milk: From there to here to being everywhere
 
ppt on Review of literature 1720335948098.pptx
ppt on Review of literature 1720335948098.pptxppt on Review of literature 1720335948098.pptx
ppt on Review of literature 1720335948098.pptx
 
Northeastern University degree offer diploma Transcript
Northeastern University degree offer diploma TranscriptNortheastern University degree offer diploma Transcript
Northeastern University degree offer diploma Transcript
 
05 BBA 20 23 Sem IV POM Forecasting Methods.pptx
05 BBA 20 23 Sem IV  POM Forecasting Methods.pptx05 BBA 20 23 Sem IV  POM Forecasting Methods.pptx
05 BBA 20 23 Sem IV POM Forecasting Methods.pptx
 
https://silverone.com/investors/presentations/
https://silverone.com/investors/presentations/https://silverone.com/investors/presentations/
https://silverone.com/investors/presentations/
 
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
 
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptxOAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
OAT_RI_Ep21 WeighingTheRisks_June24_CommodityInflation.pptx
 
Manchester University diploma
 Manchester University diploma Manchester University diploma
Manchester University diploma
 
Purdue University System degree offer diploma Transcript
Purdue University System degree offer diploma TranscriptPurdue University System degree offer diploma Transcript
Purdue University System degree offer diploma Transcript
 
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
学生妹丝袜【网芷:ht28.co】校服做爱下载app观看>>>[网趾:ht28.co】]<<<
 
Introduction to Islamic Banking and Finance.Part3
Introduction to Islamic Banking and Finance.Part3Introduction to Islamic Banking and Finance.Part3
Introduction to Islamic Banking and Finance.Part3
 
GUIA_LEGAL_CHAPTER-13_ACCOUNTING REGULATION.pdf
GUIA_LEGAL_CHAPTER-13_ACCOUNTING REGULATION.pdfGUIA_LEGAL_CHAPTER-13_ACCOUNTING REGULATION.pdf
GUIA_LEGAL_CHAPTER-13_ACCOUNTING REGULATION.pdf
 

Climate Trust Capital Spotlight

  • 1. Spotlight: Launching Climate Trust Capital Patrick Maloney, Sean Penrith, and Peter Weisberg Conservation Finance Practitioner Roundtable Portland, OR May 18th, 2016
  • 2. Building a “Market”, Phases, Deliverables & Roles Development Emerging Market Early Market (scaling) • Defining the market opportunity • Developing the cash flows & benefits flows. • Defining returns opportunities • Developing protocols & regulations • Defining & negotiating the unit of measure • Building data and processes to support the “unit of measure” • Often involving regulatory agencies • Innovation often in an NGO • First pilots transactions, often one-off deals • Modifying & testing the regulations • Testing the “unit of measure” • Validating the cash flows, benefits flows and returns model • Build market rules - TLC • Risk assessment • Returns models and sources • Pricing & valuation • Underwriting standards • Structures • Stabilized regulations • Scalable & repeatable transactions (market size) • Defining risk & returns expectations • Decreased deal friction & transaction costs • Multiple entrants along the full value chain • Investor becoming educated on the asset & strategy • First intermediaries that monitor and validate the strategy • NO RETURNS • Return of capital • “Market rate” based on risk & asset class • Grants • Grants • PRI’s • Impact/mission driven investors • Credit enhancements & guarantees • Early adopters in mainstream • Niche investors Mainstream Can you apply this MODEL to other examples of market evolution? • Micro finance • Carbon cap-trade • SIBs Making a Market: TLC • Transparency • Liquidity • Consistency
  • 3. Objective: Moving from emerging/early market to mainstream 3 • Risk mitigation • Pilot Auction Facility • Buyer of last resorts/put option contracts • Bond guarantees/credit enhancements • Buyer commitments • Protocol design Source: 2016 GIIN Annual Impact Investor Survey $15.2 billion in impact investing in 2015
  • 4. 4
  • 5. Trading on our core competency; bullish on carbon 5 Climate Trust model: Late stage projects Due diligence Active project management support Credit generation / commercialization Special Purpose Fund via CO2 Standard 18 years Climate Trust Capital: Early stage projects Due diligence Active project management support Credit generation / commercialization Impact Capital Fund 2016 >>
  • 6. What other models could The Climate Trust draw from as it launches a for-profit investment fund? What resources exist to help non-profits create for-profits? 6
  • 7. Domestic Carbon Markets – $2.89 billion total demand through 2025 7 $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Voluntary and Compliance Market Demand, 2015-2025 Voluntary Market Value Complaince Market Value California compliance market key assumptions • California’s cap-and-trade system is extended beyond 2020. From 2021 through 2025, the California Air Resource Board continues to decline the cap at 2% per year. • Compliance entities in California purchase offsets to cover only 5% of their annual compliance obligation (the maximum available to entities is 8%). • Offsets are traded at an assumed minimum price, discounted 28% from the estimated regulated floor price for allowances. Voluntary market key assumptions: • Demand for voluntary offsets grows at 5% per year. • Prices start at $5 per voluntary credit in 2015 and grow by 2% per year to $6.09 in 2025.
  • 8. California Air Resource Board Protocols: 1. Livestock digesters 2. Forestry 3. Ozone depleting substances 4. Coal mine methane capture 5. Rice cultivation Climate Action Reserve Protocols: 1. Grassland conservation 2. Nutrient management 3. Landfill 4. Composting Verified Carbon Standard Protocols: 1. Weatherization 2. Campus clean energy and energy efficiency 3. Wetlands 4. Avoided deforestation of tropical forests American Carbon Registry Protocols: 1. Forestry aggregation 2. Livestock management 3. Compost additions to grasslands 4. Wetland restoration 5. Carbon capture and storage California Compliance Market $2.18 billion demand through 2025 Voluntary Market $714 million demand through 2025 Compliance and Voluntary Carbon Market Supply and Demand 8
  • 9. Problem: Risk causes lenders to significantly or completely discount future carbon revenues. Digester Offset Revenue - $2.09 million $- $- $156,276 $164,881 $174,041 $185,145 $198,660 $213,162 $228,723 $245,420 $263,336 $263,336 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 0 1 2 3 4 5 6 7 8 9 10 11 CarbonRevenue Year Key risks: • Market risk. When delivered, what will credits be worth? • Delivery risk. Will the number of credits anticipated at the time of investment/lender be delivered? 9
  • 10. Digester Offset Revenue (CTC Financing) - $1.43 million Digester Offset Revenue (No CTC Financing) - $2.09 million $- $- $156,276 $164,881 $174,041 $185,145 $198,660 $213,162 $228,723 $245,420 $263,336 $263,336 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 0 1 2 3 4 5 6 7 8 9 10 11 CarbonRevenue Year $771,050 $- $- $- $- $- $53,977 $106,581 $114,362 $122,710 $131,668 $131,668 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 0 1 2 3 4 5 6 7 8 9 10 11 CarbonRevenue Year 10 10
  • 11. “The data is consistent with the plucking of low-hanging fruit, and also suggests starting surpluses will drop – if less dramatically – over time.” California Carbon’s “California 2030 Offset Supply Forecast – Forest Carbon Projects.” December 2015. Forestry: Focus on bump/flush/surplus projects due to low risk 11
  • 12. Financial innovation particularly powerful with high-capital cost, long-term savings projects. Source: Climate Bonds. Pooling EE/RE Projects. DG Clima. March 2013. 12
  • 13. Market risk mitigation: Put option or buyer of last resort 13 Climate Trust Capital (fund) The Climate Trust (NGO) Packard Foundation CTC receives a put-option to sell credits at a minimum over the ten year life of the fund. Commitment to Purchase AgreementLoan Agreement Project 1 Project 2 Project 4 Project 3 Project 5 Carbon Investment Agreements
  • 14. Market risk mitigation: Put option gives Climate Trust Capital the right, but not the obligation, to sell verified credits to The Climate Trust at $6/credit. 14
  • 15. Fund Concept: Finance projects that will rely upon revenues from carbon markets. Problem: Lenders are unwilling to value revenues from carbon markets (and require projects to be profitable in their absence). Forestry, biogas, and agricultural projects therefore struggle to raise the necessary capital to build and develop new projects. Solution: Climate Trust Capital will finance projects that will depend upon revenues from carbon markets, through an upfront investment. 15
  • 16. Financing Tool: Upfront investment based on anticipated carbon credit generation. • Guarantee minimum carbon value. • Revenue share rewards project developers as carbon prices increase. Investment • Climate Trust Capital “pre-purchases” ten years of the carbon offsets a project is anticipated to generate. • Capital is made available upfront for the construction of new projects. Active management • Climate Trust Capital will work with a project to develop a carbon monitoring plan and commercialize credits. Revenue share • After carbon sales have repaid the pre-purchase, 50% of future carbon revenues are paid to the project and 50% are paid to Climate Trust Capital and its investors. 16
  • 17. Digester Offset Revenue (CTC Financing) - $1.43 million Digester Offset Revenue (No CTC Financing) - $2.09 million $- $- $156,276 $164,881 $174,041 $185,145 $198,660 $213,162 $228,723 $245,420 $263,336 $263,336 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 0 1 2 3 4 5 6 7 8 9 10 11 CarbonRevenue Year $771,050 $- $- $- $- $- $53,977 $106,581 $114,362 $122,710 $131,668 $131,668 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 0 1 2 3 4 5 6 7 8 9 10 11 CarbonRevenue Year 17 17
  • 18. Value Proposition: Manage the long-term execution and market risks associated with nascent carbon markets. Market Risk Mitigation. Investments guarantee a minimum value for carbon credits over the 10 year crediting period of a project. • Allows projects to leverage The Climate Trust’s existing programs, which have $22 million under management and must purchase and retire credits regardless of what happens in emerging markets. Execution Risk Mitigation. We develop a carbon monitoring plan that sets up the methods for data collection, data aggregation and verification. We then commercialize credits on behalf of the project in the compliance and voluntary markets. • Monitoring plan allows projects to benefit from The Climate Trust’s 18 years of experience investing in and managing offset projects. • Commercialization gives project developers access to The Climate Trust’s existing buyer network. Projects benefit from portfolio approach since this aggregation minimizes risks (execution & invalidation) that buyers currently face. 18
  • 19. Grassland conservation: Place prairie under an imminent threat of conversion into cropland under a conservation easement. Source: Climate Action Reserve, revised 2015. Evaluation of Avoided Grassland Conversion and Cropland Conversion to Grassland as Potential Carbon Offset Project Types. 1Assumes linear growth such that 30% of acres converted every year into cropland are instead conserved by 2025. Climate benefit Enhanced carbon sequestration in soils. Carbon market Voluntary market (does not yet qualify for California compliance) Anticipated greenhouse gas reduction associated with new projects1 built between 2015 and 2025 902,564 mtCO2e Greenhouse gas reductions purchased by The Climate Trust to date 39,384 mt CO2e What types of forestry projects are likely to find turning long-term carbon revenues into upfront capital attractive? Should Climate Trust Capital target land acquisition, avoided conversion projects, projects that are currently at common practice values? 19
  • 20. Target: Scale fund investments to be directed at identified sectors Goals: 1. Pilot $15 million fund 2. Scale to a $100 million fund 3. Reduce 20 million tons of greenhouse gas emissions 4. Demonstrate carbon offsets are an investible and reliable asset class Conservation Finance Gap. Credit Suisse estimates the quantity of conservation finance must multiply by 20 to 30 times to meet global conservation needs. Source: Credit Suisse, World Wildlife Fund, McKinsey. Conservation Finance. January 2014. 20
  • 21. Mitigating Delivery Risk: Protocols are public goods, and therefore require significant investment of public dollars. 21 American Carbon Registry’s “Avoided Conservation of Grasslands” relies on Denitrificiation-Decomposition Biogeochemical Process Model Climate Action Reserve’s “Grasslands Protocol” does modeling for US, provides lookup table (Development and implementation of both protocols supported by Conservation Innovation Grants)
  • 22. Future Symbiotic Structure The Climate Trust Climate Trust Capital Investments made in environmental credits Fund 1, 2, 3 …. Technical Assistance Debt & equity investors Foundation, philanthropic, grant support Development Facility Project 1 Project 2 Project 3 Project 4LLC NGO New sector development Sector 1 Sector 2 ….......
  • 23. What division of roles have worked well/poorly between non-profits and for-profits? What financial relationships have worked well/poorly? 23
  • 24. Mitigating Market Risk: Replace grant funding with market risk mitigation like buyers of last resort. 24
  • 25. What opportunities exist to replicate World Bank’s Pilot Auction Facility for domestic environmental markets in the United States? 25
  • 26. Expanding Voluntary Buyer Commitment: Council on Environmental Quality 26 Executive Order 13693 (March 2015): Federal agencies must reduce GHG emissions 40% below 2008 levels by 2025. CEQ Guidance on Federal GHG Accounting and Reporting (June 2012) “… carbon offsets are not allowed to be applied as an adjusted against a Federal agency’s emissions... More time and deliberate focus is necessary to understand how the market for carbon offsets and use of those offsets could be applied consistently across the Federal community.” Allowing agencies to meet 8% of the anticipated reductions using offsets (rather than just RECs) could grow the voluntary market by 15% (~1.35 million offsets per year).
  • 27. Grassland conservation: Place prairie under an imminent threat of conversion into cropland under a conservation easement. Source: Climate Action Reserve, revised 2015. Evaluation of Avoided Grassland Conversion and Cropland Conversion to Grassland as Potential Carbon Offset Project Types. 1Assumes linear growth such that 30% of acres converted every year into cropland are instead conserved by 2025. Climate benefit Enhanced carbon sequestration in soils. Carbon market Voluntary market (does not yet qualify for California compliance) Anticipated greenhouse gas reduction associated with new projects1 built between 2015 and 2025 902,564 mtCO2e Greenhouse gas reductions purchased by The Climate Trust to date 39,384 mt CO2e If federal agencies are enabled to buy offsets to meet reduction requirements, in what way should they structure their program to generate the largest impact? 27
  • 28. Creative Instruments/approaches 28 • Green (ASB) bonds • PRI syndicated put option/bond guarantee • NGO cooperative bond issuance • EPA CWA SRF guarantee facility
  • 29. Carbon price is an indication of the ambition of a cap-and-trade system 29 Source: Jenkins and Karplus. “Carbon pricing under binding political constraints.” WIDER Working Paper. April 2016.
  • 30. THANK YOU! Peter Weisberg Senior Investment Manager The Climate Trust pweisberg@climatetrust.org (503)238-1915 x207

Editor's Notes

  1. SEAN
  2. SEAN
  3. SEAN to cover: TCT history Purpose of transition from “special purpose” fund manager to impact fund manager Similar skills (assessing environmental integrity, assessing delivery risk)
  4. SEAN
  5. California Carbon: 29.6 million offsets per year demanded on average from 2015-2030. 2014 production: 14.7 million. Takeaway: Significant demand for offsets currently not being realized.
  6. How does this carry over to the forestry space: Move away from large flush projects Opportunity to provide capital for more than just development costs Land acquisition? Avoided conversion?
  7. -Financial innovation particularly powerful for projects like renewable energy with significant capital costs and long-term savings. -Solar-as-a-service model: -Solar service agreements allowed a third-party to finance, own, operate and maintain a photovoltaic system with the host customer providing a site for the system and an agreement to purchase the resulting electricity. -Shifts risks to experts - 90% of the residential and commercial solar volume in the United States is built through this arrangement. -Climate Trust sees unique opportunity for these types of capital intensive projects that require long-term carbon revenues to support them.
  8. How does this carry over to the forestry space: Move away from large flush projects Opportunity to provide capital for more than just development costs Land acquisition? Avoided conversion?
  9. PAT
  10. Worst case scenario: Donors buy verified environmental credit. Best case: Dollars revolve and have significantly more impact. Potential use for $12 billion CA raises in auction revenue, or USDA conservation funding. Other policy designs: Price floors.
  11. Mechanisms to leverage this buying: AMC – long-term, fixed price PAF
  12. SEAN
  13. SEAN