Carbonless Promise, a CP Holdings, LLC Company presents… Carbon Offsets So you go to college why? To learn, ha!? If you are you’ll probably never leave. *Make ourselves more valuable in the market place, to make more money.* They always tell you money doesn’t grow on trees, well we’re about to change all that around. The currency of the future

Capitalizing Carbon Where did the carbon market come from? How big is it going to be? Can I really make money AND save the planet? *capitalizing = giving value to How many here believe that global warming is not a problem we need to worry about? Ok and how many of you (with hands up) don’t want to make money? Right…, now that everyone is on the same side lets talk about why we as a society have decided to capitalize carbon, and just how much money we’re talking about. Oh and that last question, YES! You can make money and save the planet, ok ok, maybe I’m exaggerating, the planet most likely isn’t in that much danger, just mammals living on this planet. But even you don’t believe me that we are in danger, believe me you can make money.

Capitalizing Carbon Where did the carbon market come from? How big is it going to be? Can I really make money AND save the planet?

Fossil Fuels Arrive Anthropogenic Emissions, from the latin root Anthro meaning human. Maybe in literature class you have heard of Anthropomorphism? Ie., projecting human-like characteristics on non-human things, *kinda like thinking that engineers understand empathy, (can sic joke hear about campus rivalries) * *for you engineers out there the graph axis normal *just normal cycle of atmosphere that happens to coincide with our time on planet - ?

Empirical Enough? *Empirical…define? Notice the time period on the bottom is in thousands of years. We are looking 650,000 years through time. The little up spikes hear at the end are not in error, and no I did not photoshop them in. *Stress some correlation between temp and CO2, but stress most of all how unprecedented it is. *don’t want to argue correlation or negative/positive unless you want to buy me beer. *the point is enough human beings have decided this is a problem that needs our attention

Birth of the Carbon Market 1979 Convention on Long Range Trans-boundary Air Pollution warning acronym soup ahead, for some reason this one doesn’t get an acronym…,

Birth of the Carbon Market 1979 Convention on Long Range Trans-boundary Air Pollution I guess some think Lurtap doesn’t roll off the tongue, unfortunate in my opinion.

Birth of the Carbon Market 1979 Convention on Long Range Trans-boundary Air Pollution 1987 Protocol on the reduction of sulfur dioxide (SO2) emissions In 1987 we establish a Cap and Trade system with SO2 *how many heard of the expression “cap and trade”? *established limits and penalties that capitalized so2, in that it made reductions worth money. (Explain) *were you taught about acid rain? well i was, now its gone because of this

Birth of the Carbon Market 1979 Convention on Long Range Trans-boundary Air Pollution 1987 Protocol on the reduction of sulfur dioxide (SO2) emissions 1990 Clean Air Act So in 1990 comes the clear air act, and as with most legislation, it is so confusing those mandated to enforce it aren’t even sure what it is they are suppose to do. And what agency is charged to enforce the Clean Air Act…?

EPA It’s the EPA, which stands for, everyone say it with me….

Environmental Protection Agency EPA Environmental Protection Agency Environmental Protection Agency recently some foolish scientists within the EPA tried to extrapolate that the EPA’s jurisdiction in accordance to the clear air act should include the reduction of carbon dioxide, in the same way as we reduced sulfur dioxide…,

SO2 CO2 i mean who could think that an "S" looks anything like a "C", thank god the editors within the EPA caught this obvious error. Anyway I am getting off track here, I am not here to debate who is right and wrong, I am here to talk about making money, so back to how humanity decided it is worth money to reduce carbon dioxide emissions…

Birth of the Carbon Market 1979 Convention on Long Range Trans-boundary Air Pollution 1987 Protocol on the reduction of sulfur dioxide (SO2) emissions 1990 Clean Air Act 1992 Earth Summit in Rio De Janeiro Produced UNFCCC 1992 we see the formation of the UNFCCC

UNFCCC Ok UNFCCC stands for everyone now…, United Nations Framework Convention on Climate Change *sic didn’t realize that many would get it?

UNFCCC United Nations Framework Convention on Climate Change The treaty includes a NON-BINDING call for developed countries to return their emissions to 1990 levels by the year 2000 “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous ANTHROPOGENIC interference with the climate system.” non- binding *like digital TV deadline has come and gone (read the quote) *there’s that root again, anthro. This is the politically correct way of saying engineers are really boring. no no, what is mean is this is politically correct way of saying that we can’t prove this is going to kill us or that the planet is in danger, but we do know it is going to change our way of life in ways that will harm BILLIONS of humans. And when I say politically correct here I am not talking about pissing off some demographic, I’m talking about politicians and they way they have to use language.

UNFCCC United Nations Framework Convention on Climate Change The treaty includes a NON-BINDING call for developed countries to return their emissions to 1990 levels by the year 2000 “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous ANTHROPOGENIC interference with the climate system.” Established “Annual Conference Of the Parties” In addition to trying to tell us that billions of humans were going to affected negatively by global warming the UNFCCC also… *read slide* Established “Annual Conference Of the Parties” Parties here referring to more than one person, not the kind you have here during freshmen orientation, but it does has its own acronym…

Conference Of the Parties COP Conference Of the Parties Yes COP, and we all love cops especially during the aforementioned parties.

Birth of the Carbon Market 1979 Convention on Long Range Trans-boundary Air Pollution 1987 Protocol on the reduction of sulfur dioxide (SO2) emissions 1990 Clean Air Act 1992 Earth Summit in Rio De Janeiro Produced UNFCCC and COP 1997 KYOTO 1997 Kyoto

KYOTO Ok, KYOTO…, anyone? *not an acronym, it’s a city

Birth of the Carbon Market 1979 Convention on Long Range Trans-boundary Air Pollution 1987 Protocol on the reduction of sulfur dioxide (SO2) emissions 1990 Clean Air Act 1992 Earth Summit in Rio De Janeiro Produced UNFCCC and COP 1997 Kyoto Treaty 3rd Annual conference of the COP ratified what we now call the kyoto protocol establish a mechanism for a cap and trade system similar to our sulfurdioxide legislation, including consequences for failure to comply and monetization of co2 emissions through…, Yes a cap and trade system. 192 countries participate, the US is not one of them.

Birth of the Carbon Market 1979 Convention on Long Range Trans-boundary Air Pollution 1987 Protocol on the reduction of sulfur dioxide (SO2) emissions 1990 Clean Air Act 1992 Earth Summit in Rio De Janeiro Produced UNFCCC and COP 1997 Kyoto Treaty 2009 ??? Kyoto done COPENHAGEN DECEMBER 2009.

Capitalizing Carbon Where did the carbon market come from? How big is it going to be? Can I really make money AND save the planet? To get an idea how much money we are talking lets first look at what is happening right here in the United States. As you should know by now we don’t have a cap and trade system for carbon dioxide, but that hasn’t stop a very large and robust voluntary market from developing. Voluntary markets are comprised of business or individuals like you and I that decide to analyze and reduce their carbon footprint. Typically setting targets for reductions and trying to reduce direct emissions and/or buy offsets to meet their goals, much like a cap and trade system but without any mandated penalty. So how many of you would make a commitment to reduce your footprint or pay the price? You forget we are already paying the price. Oh and since the last time we saw this slide we learned that last statement really isn’t accurate.

Capitalizing Carbon Where did the carbon market come from? How big is it going to be? Can I really make money AND prevent dangerous anthropogenic interference with the climate system? There now we’re politically correct,

How Big is it Going to Be? …states participating in the Regional Greenhouse Gas Initiative (RGGI) today announced the results of the third auction for RGGI carbon dioxide (CO2) allowances. The March 18th auction was the first since compliance obligations under RGGI's first three-year control period began January 1, 2009.  All of the 31,513,765 allowances for the 2009 vintage sold at a clearing price of $3.51 per allowance. As with many issues here in the United States the states push change before the federal government does something *RGGI = Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont more acronyms, this one is fondly referred to as Reggie. *Read last line

How Big is it Going to Be? …states participating in the Regional Greenhouse Gas Initiative (RGGI) today announced the results of the third auction for RGGI carbon dioxide (CO2) allowances. The March 18th auction was the first since compliance obligations under RGGI's first three-year control period began January 1, 2009.  All of the 31,513,765 allowances for the 2009 vintage sold at a clearing price of $3.51 per allowance. $110,613,283 – 110 Million Dollars

How Big is it Going to Be? Regional Greenhouse Gas Initiative (RGGI) Chicago Climate Exchange (CCX) Voluntary Carbon Standard (VCS) Gold Standard Renewable Energy Credits (REC) Client Community and Biodiversity Alliance (CCBA) C-LOCK The Climate Registry (TCR) California Global Warming Solutions Act (I’ll Be Back) California Climate Action Registry (CCAR) RGGI is just one organized a cap and trade system. These are all voluntary protocols right here in the united states. We, CP Offsets have traded almost 100,000 ton on the CCX last year and hope to hit a million before the end of the year this year.

How Big is it Going to Be? Ok, see this little tiny sliver of not-quite white right here… That’s the CCX, RGGI and all the standards get put in a line so small you can’t even see it. The 110 million dollars is just the very tip of this iceberg.

How Big is it Going to Be? Carbon emissions trading has been steadily increasing in recent years. According to the World Bank’s Carbon Finance Unit, 374 million metric tones of carbon dioxide equivalent (tCO2e) were exchanged through projects in 2005, a 240% increase relative to 2004 (110 mtCO2e) which was itself a 41% increase relative to 2003 (78 mtCO2e). In terms of dollars, the World Bank has estimated that the size of the carbon market was 11 billion USD in 2005, 30 billion USD in 2006 and 64 billion in 2007. I’ll just pretend like we are back in 5th grade and read this aloud…

How Big is it Going to Be? The value of the global carbon market surged 84 percent to $118 billion in 2008 despite the worldwide financial crisis… …The average price across all transactions rose to $29 per ton of CO2 from $23. And for 2008?

How Big is it Going to Be? The value of the global carbon market surged 84 percent to $118 billion in 2008 despite the worldwide financial crisis… …The average price across all transactions rose to $29 per ton of CO2 from $23. All of the 31,513,765 allowances for the 2009 vintage sold at a clearing price of $3.51 per allowance. $110,613,283 – 110 Million Dollars Remember RGGI, out tiny little fish in the huge sea of the offset market. Look at what could happen here, the current price of offset credits in the united on the voluntary market – $3.51. If the value of carbon in a cap and trade system is $29 a tone, where does that put us now?

How Big is it Going to Be? The value of the global carbon market surged 84 percent to $118 billion in 2008 despite the worldwide financial crisis… …The average price across all transactions rose to $29 per ton of CO2 from $23. All of the 31,513,765 allowances for the 2009 vintage sold at a clearing price of $3.51 per allowance. $913,899,185 – Almost a Billion Dollars Hopefully you are getting the picture, this is going to be big, and when I say big I mean like godzilla coming up from the depths of the ocean to destroy Tokyo big. This already a multibillion dollar industry that was created just a few years ago from nothing. It was an industry created by humans to capitalize carbon, and its working. And all of this without any formal cap and trade system here in the us…

How Big is it Going to Be? “But to truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy. So I ask this Congress to send me legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America. And to support that innovation, we will invest fifteen billion dollars a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America.” This from our president, mr. barak obama… From what I have read and understand there appears to be bi-partisan support for cap and trade, the disagreement is, what form, when, how fast it will tighten the limits, and where the penalties should be enforced. So yes we do have a ways to go, the important one, the WHY is no longer a large enough issue to prevent legislation. Cap and Trade legislation is inevitable at this point and time, we just don’t know when it will pass or what it will look like, but mark my words, it IS coming.

Capitalizing Carbon Where did the carbon market come from? How big is it going to be? Can I really make money AND prevent dangerous anthropogenic interference with the climate system? Which brings us to our final question, can YOU make money in this new carbon market.

Can You Make Money? Origination of Carbon Offset Projects -Owner/Producer -Project Manager -Verifier -Governmental Oversight B2B Opportunities -Marketing -Risk Mitigation -Resale -Ethically Responsible Practices Footprint Management -Risk Analysis -Risk Management *explain the different categories briefly.* *tell story of chip and the underground sequestration So where do you get started? Selling Offsets -Retail -B2B -Cap and Trade Trading Markets

Can You Make Money? Origination of Carbon Offset Projects -Owner/Producer -Project Manager -Verifier -Governmental Oversight B2B Opportunities -Marketing -Risk Mitigation -Resale -Ethically Responsible Practices Footprint Management -Risk Analysis -Risk Management We have jobs right now open for you in these areas, you can work part time, choose your own hours and make money to help pay for college. And more importantly you can start to learn a marketable understanding of what is going to be a very large market full of opportunities. Selling Offsets -Retail -B2B -Cap and Trade Trading Markets

Capitalizing Carbon Where did the carbon market come from? From us, we created it, and we will pay for it. How big is it going to be? Can I really make money AND prevent dangerous anthropogenic interference with the climate system? There is going to be money, your choice is to participate or not.

Capitalizing Carbon Where did the carbon market come from? From us, we created it, and we will pay for it. How big is it going to be? It is going to be Godzilla big. Can I really make money AND prevent dangerous anthropogenic interference with the climate system? This is already a multi billion dollar industry and is growing exponentially. Listen, every energy company is already tracking their green house gas emissions. They are calculating how much they can reduce and how much they are going to have to pay for. Your energy prices are going up, cap and trade is coming to the US. This is GOING to be HUGE.

Capitalizing Carbon Where did the carbon market come from? From us, we created it, and we will pay for it. How big is it going to be? It is going to be Godzilla big. Can I really make money AND prevent dangerous anthropogenic interference with the climate system? Yes you can, start now! Yes you can, start now.