Back to the Future: State of the Voluntary Carbon Markets 2011 PREMIUM SPONSOR SPONSORS

2 Market-wide, comprehensive survey of the OTC voluntary carbon markets Collected data from offset suppliers, registries and exchanges Agnostic on credit quality Tracks transacted credits as they pass hands in market – so transaction volume, not market size Another 261 suppliers did not transact credits in 2010, were no longer selling voluntary carbon credits or were no longer in business. This year, a record 284 respondents from 38 countries responded to our survey

3 34% of respondents from US, suppliers from developing countries doubled (2009: 29; 2010: 58) Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Survey Participant Location

4 Transaction volumes increased 34% in 2010 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Historic Volume in the Voluntary Carbon Markets MtCO2e

5 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Historic Value in the Voluntary Carbon Markets MtCO2e Average OTC prices declined slightly to $6/tCO 2 e, 98% of value from OTC transactions

6 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Historic Transacted and Retired Volumes MtCO2e The main goal is credit retirement, which has largely stayed level since 2007

7 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Transaction Volume by Project Type Land-based credits sequester 46% of OTC market share “other” land-based 1% Large Hydro 1%

8 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Historic Transaction Volume by Forest Carbon Project Type REDD methodologies closing gap on supply and demand for conservation projects

9 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Transaction Volume by Location and Project Type Latin American forestry saw unrivaled growth MtCO2e

10 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Transaction Volume by Vintage Intensified demand for future vintages MtCO2e

11 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Market Share by Standard REDD stacked the odds in favor of VCS and CCB Standards Plan Vivo 1% CDM 1% 8 stds < 0.1% NZ PFSI 0.3% SOCIALCARBON 1%

12 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Average Price by Standard Credit prices highly stratified across (and within) standards US$/tCO2e

13 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance PoAs and grouped project guidance a prominent feature of most major certification programs Transaction Volume by PoA or Grouped Project Guidance Utilized

14 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Registry market share mirrored standard usage, with Markit still in the lead Transaction Volume by Registry Utilized Registered vs. OTC Transacted Volumes

15 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Mostly voluntary buyers for-profit, motivated by credit retirement – led by the EU Transaction Volume by Type of Buyer Transaction Volume by Customer Location

16 Source: “State of the Voluntary Carbon Markets 2011”, Ecosystem Marketplace and Bloomberg New Energy Finance Voluntary carbon market participants “cautiously optimistic” about 2011 and beyond Supplier-Projected Market Growth for the Voluntary Carbon Markets MtCO2e