This document provides an update on ecosystem markets in 2015. It discusses various ecosystem service markets including carbon sequestration, watershed services, and biodiversity conservation. For carbon markets, it notes the role of voluntary programs like CAR and VCS as well as regulatory programs like RGGI and California's AB 32. It provides details on TFG's carbon projects and credits issued. For watershed services, it discusses wetlands and stream mitigation markets and credit pricing varies by region. Finally, it outlines some biodiversity credit programs focused on habitat conservation and restoration.

1. Update on
Ecosystem Markets
2015
STUART HALE
shale@fmcllc.net
THE FOREST MANAGEMENT COMPANY
ABINGDON VA

2. Ecosystem Services
Markets
• Forest products
• Recreation
• Carbon sequestration
• Watershed services
• Biodiversity/ Conservation
The benefits humans obtain from ecosystems.

3. Carbon markets
Voluntary
• Climate Action Reserve (CAR)
• Voluntary Carbon Standard (VCS)
 Forestry and land use (REDD) account for approximately 45% of carbon
market share valued at $126 M (2013)
Regulatory
• Regional Greenhouse Gas Initiative (RGGI)
• California AB 32

4. Voluntary carbon markets

5. Voluntary carbon markets

6. Voluntary carbon markets

7. Voluntary carbon markets

8. Regulatory carbon markets

9. Regulatory carbon markets

10. Regulatory carbon markets
California ARB

11. TFG carbon projects
Project Acres State Credits issued (approximate)
Virginia Highlands I 9,753 VA (HFF IV) 193,277
Bishop 229,601 Michigan (HFF IV) 2,163,951 (largest under ARB)
Champion Property 102,899 New York (HFF III) 166,918
Connecticut Lakes 141,062 New Hampshire (HFF IV) 1,442,576
Total 483,315 3,966,722
*More under development*

12. Carbon markets
Discussion

13. Watershed services markets
“no net loss” under Clean Water Act
• Stream
• Wetlands
Options:
• Permittee-Responsible
• In-Lieu Fee
• Mitigation Banks

14. Watershed services markets

15. Watershed services markets

16. Watershed services markets
Stream mitigation credit prices
Region Price per credit ($/LFt)
United States 240 (average)
Virginia 400
Tennessee 200
North Carolina 256
• $20 – 35 per linear foot
• $4,356 – 7,623 acre
 $3,136.24

17. Watershed services markets
Region Price range ($/per acre) Average/ILF ($/per acre)
United States 3,000 – 653,000 74,535
Virginia 75,000
North Carolina 50,313 – 69,736 69, 736
West Virginia 60,262
Wetland mitigation credit prices
• ‘Pessimistic’ price of $11,081
• ‘Most likely’ price of $16,081
• ‘Optimistic’ price of $21,081

18. Watershed services markets
Discussion

19. Biodiversity/conservation services
markets
Mostly voluntary markets centered around
habitat conservation and restoration
Some regulatory markets based on ESA
• WV Thunderstruck Conservation Bank
◦ Cheat Mountain Salamander
◦ West Virginia Northern flying squirrel

20. Biodiversity/conservation services
markets
West Virginia - $8-million to use logging to
improve cerulean warbler habitat
• Funding provided by NRCS, through Appalachian
Mountains Joint Venture, to offset costs of habitat
specific management
• Shelterwood harvests on north- and east-facing
slope with oak-hickory stands
• Creating gaps while maintaining oak-hickories
• After approximately 5-years as habitat becomes less
suitable perform second harvest

21. Biodiversity/conservation services
markets
• Virginia – Purchase of forestland and rights for conservation
• Tree species restoration (long and shortleaf pine)
• Early successional habitats for wildlife and pollinators
• Reduce sedimentation

22. Biodiversity/conservation services
markets
Discussion

23. Update on
Ecosystem Markets 2015
STUART HALE
shale@fmcllc.net
THE FOREST MANAGEMENT COMPANY
ABINGDON VA