sustainable carbon presentation

Açaí pits are a type of renewable biomass that is used as a fuel in some Sustainable Carbon projects

in Brazil

Sustainable Carbon:Comprehensive Carbon Offsets

www.sustainablecarbon.com

January 30th, 2010

Introducing Sustainable Carbon

Ecosystem Services

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I. Sustainable Carbon – Who We AreII. Carbon Markets & CreditsIII. Our ProjectsIV. Integrity, Transparency & Credibility in the Carbon MarketV. Business Case for Carbon Offsets

A lake on the ‘Discovery Coast of Brazil’ located in the Atlantic Forest

A wild Jaguar in the ‘Pantanal Wetlands’ of Brazil

Contents

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Who We Are

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Sustainable Carbon is a co-developer of greenhouse gas emission (GHG) reductions projects for the carbon market. We only develop and promote projects that are fully additional and contribute to comprehensive sustainable development. We are:

•Experts in “earth” carbon – biomass, REDD, forestry and fuel-switching

•The leading project developer in terms of the number of VCS and SOCIALCARBON®-validated projects on the Markit® Environmental Registry

•Expanding our geographic scope in South America, North America and Africa

http://www.markit.com/en/products/registry/markit-environmental-registry-public-view-reports.page




Project Locations

Current Project Locations 2011 Project Locations

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< United States

> Brazil

Colombia >

< Paraguay

Chile >

< Cape Verde

Angola >

< São Paulo

< Rio de Janeiro

< Paraná

Mato Grosso do Sul >

Minas Gerais

< Rodônia

Amazonas Pará

< Maranhão

< Ceará

< Pernambuco< Alagoas

< SergipeTocantins >

^ Acre

Goiás


Buyers of Sustainable Carbon’s Credits:

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Carbon Markets & Credits7


The Carbon Markets

• Two international carbon markets: compliance and voluntary. • Compliance Project Cost + Development Time = Exclusion• Voluntary Market = Response to Compliance Market Criticisms

• Despite the Great Recession of 2009, the volume transaction on the voluntary market was still 37% above 2007 levels, as shown below:

• €30-50 by 2020

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Carbon Credits

What is a carbon credit?• A certification that one ton of CO2e was prevented

from entering the atmosphere as a result of projects, such as Sustainable Carbon’s.

How can you use it?

• Be integrated within a business’ climate change mitigation strategy.

• An excellent way to neutralize unavoidable emissions.

• Link credits to the environmental footprint of products = CO2 NEUTRALITY

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Our Carbon Credits

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Sustainable Carbon uses the Voluntary Carbon Standard (VCS) and the SOCIALCARBON® Standard in all of its voluntary projects.

A standard is a recognized methodology to check project performance and quality .

• The VCS is based on ISO principles and is the most used carbon-accounting standard in the voluntary market.

• The SOCIALCARBON® Standard is an internationally-used standard that has been rated as a Co-Benefit Standard of Best-Practice by ICROA.

• The Standard provides the framework by which six aspects of sustainability are transparently assessed over the project’s lifetime, with continual improvement as the goal.

http://www.v-c-s.org/

http://www.socialcarbon.org/




Measuring Sustainability with SOCIALCARBON®

Social

Human

Financial

Natural

Technology

Carbon

6

4

5

3

2

1

0

2.4

2.0

3.0

3.5

3.1

4.0

• Six sustainability aspects measured over the 10-year lifetime of the project

• Point Zero is the baseline scenario - how sustainable is the project at the begining?

• Even at Point Zero, GHG reductions are being realized – our fellow co-developer is taking the initiative to mitigate climate change

• Clients purchase the carbon credits, neutralize their unavoidable emissions, and invest in the sustainability of the project

• That investment leads to Point 01 whereby clients can transparently see their investment making a difference

• Point 02, 0303...10 – Continual improvement is the goal, and your organization makes it happen

3.3

3.1

3.0

3.7

3.4

4.6


Our ProjectsExterior view of the Irmãos Fredi Ceramic Factory in São Paulo, Brazil

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Our projects tackle the root causes of deforestation and degradation

Contribution to Avoided Deforestation

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Our fuel-switching projects replace the consumption of native timber or heavy oil with renewable biomass:

Açaí Seeds

Sustainable Carbon +

Partnering Co-Developer

Coconut Husk Wood Residues

OR


Exemplary Project: Lucevans

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Lucevans ceramic is a small business in São Paulo state, Brazil that produces bricks and roof tiles for the local construction industry. •Before switching to renewable biomass, the factory used old-growth timber sourced from the Cerrado ecosystem, contributing to deforestation and threatening the Cerrado’s renowned biodiversity.

•Over the course of 10 years, 85,031 tons of CO2 equivalents will be reduced.


Integrity, Transparency & Credibility

Wilson, a worker at Rio Negro, an Amazonian project to come online in early 2011

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• Sustainable Carbon works with two Designated Operating Entities (DOEs):

• A DOE is an organization accredited by the United Nations (UNFCCC) to verify and audit GHG reductions projects

• They review documentation like: Project Design Document (PDD) Verficiation Reports Carbon Inventory Calculations

Integrity: Designated Operating Entities

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Verification Statement PDD Validation Report

= INTEGRITY


Transparency: Markit™ Environmental Registry

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• Sustainable Carbon uses the Markit™ Environmental Registry. • It is a public registry where anyone can see see any aspect about our projects

When projects are validated and credits are verified, you can freely view information such as:

Year in which the

credits/units were produced

VINTAGE

Serial number attached to project to

prevent double-counting

PROJECT

Who developed the project and/or who

owns the credits

DEVELOPER

What standards did the

developer ascribe to the

project

STANDARDS

Which UN-accredited

agency verified the project

DOE

Public access to all documents relating to the

project

DOCUMENTS

TRANSPARENCY


Credibility: Markit™ Environmental Registry

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When you buy the credits and neutralize your emissions, you can prove it to your stakeholders:

Date on which the credits were

bought and “retired” to

neutralize your emissions

RETIREMENT

Links you the buyer with the

project

PROJECT

Shows who managed the transaction

HOLDER

Stakeholders can see and

judge robustness of

standards used

STANDARDS

Clearly shows that you bought

the credits

REMARKS

Proves that you neutralized the number of tons claimed in your

CSR Report

QUANTITY

CREDIBILITY


Business Case for Carbon Credits

An employee at the Lara Project in Brazil, with a ceramic brick produced at the facility

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Sustainable Carbon Credits

• Premium Credits: » The added SOCIALCARBON® Standard to our projects means that truly substantial social,

environmental and economic benefits are sustainably brought to tens of small communities throughout South America.

• Guaranteed Neutralization: » The carbon credits we sell have already been generated and independently verified by one

of two UN-accredited agencies called Designated Operating Entities (DOEs).

• Lower Risk: » Projects with two standards means twice the number of validation and verification

procedures audited by DOEs ensuring the credits exist, the biomass is sustainably sourced and socioenvironmental goals are being achieved (among other aspects).

• Transparent: » Our credits are listed on the Markit® Registry where anyone can see any aspect about our

credits, from project documents to who bought or “retired” the credits.

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Comprehensive Benefits

STRONG BRAND RECOGNITION

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CORPORATE SUSTAINABILITY

STRATEGY

1. KPMG,.“Climate Changes Your Business.” 2008. 2. McKinsey. “How Companies Manage Sustainability: McKinsey Global Survey Results.” March 2010. 3. Lo, S. & Sheu, H. (2007). Is corporate sustainability a value-increasing strategy for business? Corporate Governance: An International Review, 15(2):345-357.


Comprehensive Benefits

PRODUCT/SERVICE

DIFFERENTIATION

TOP-TALENT SATISFACTION

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Low-Carbon Certified

Contact Us:Rua Borges Lagoa, 1065 – Conjunto 144 Vila Clementino – São Paulo, SP CEP: 04038-032 | BrazilE-mail: [email protected] Tel: +55 (11) 2649 0036Fax: +55 (11) 2649 0042Access: www.sustainablecarbon.com