1. Forests and Carbon - Overview Jim Cathcart Oregon Department of Forestry State Bar Environmental and Natural Resources Law Section Forestry and Climate Change Brown Bag Lunch Session April 21, 2009 Portland, Oregon “STEWARDSHIP IF FORESTRY”

2. Sequestration vs. Storage Growth Yield

3. Carbon Pools Above Ground Dead Wood Below Ground Wood Products Google Images

4. Scale TreeStandLandscape

5. Log 1 Log 2 Log 3 Log 4 Log 10 Log 5 Log 6 Log 7 Log 8 Log 9 All logs Can Dead Trees Store Carbon? Source: Mark Harmon, A Landmark Assessment of Oregon’s Forest Sustainability – Oregon State University – October 18, 2001

6. Can Dead Trees Store Carbon? Photo by Mike McMurray Google Images

7. Can Dead Trees Store Carbon? “Dead Trees Don’t Go To Heaven” Olga Krankina, Oregon State University

8. Vegetation Density Changes under Potential Future Warming (MAPSS Simulations) Small Warming: The Biosphere becomes greener, A sink for carbon (negative feedback). Modest Warming: Drought regions expand into previously greening regions. Carbon balance is near a threshold. Considerable warming: Drought areas expand more. The Biosphere becomes a source of carbon (positive feedback). In 6 of 7 future Scenarios the West gets wetter, fostering woody expansion and fuels increase. Adaptation

9. Mitigation Business -As-Usual Energy Efficiency Actions 25% Renewable Portfolio Standard Transport Actions Materials Actions Biological Sequestration Actions Source: Oregon Strategy for Greenhouse Gas Reductions – Governor’s Advisory Group on Global Warming (2004)

11. Types of “Offsets” Increase Storage through Sequestration –Forestation (Land Use Change) –Forest Management Maintain Existing Carbon Stores –Avoided Development –Forest Management/Conservation Displace Fossil Fuel Emissions –Urban Forestry –Fuels Treatments/Forest Biomass Utilization

12. Who Is “Buying” Carbon? Domestic Energy Producers/Utilities Forest Resource Trust The Climate Trust Brokers (e.g., Natsource, CO 2 e, EcoSecurities, Cantor Fitzgerald, Equator LLC, Merrill Lynch) Chicago Climate Exchange Carbon Calculators International European Union Emissions Trading Scheme Kyoto Clean Development Mechanism UNFCCC – Joint Implementation Program

13. Who Is “Selling” Forest Carbon? Oregon Individual Landowners (Forestation Projects) Deschutes River Conservancy Woodland Carbon Company (Oregon Pilot Aggregator) Northwest Natural Resource Group (NW Certified Forestry) EcoTrust Oregon Board of Forestry Source: Matt Delaney, Delaney Forestry Services LLC

14. Who Is “Selling” Forest Carbon? Outside of Oregon Environmental Synergy Inc, (Lower Mississippi River Valley) US Fish and Wildlife Service - Lower Mississippi River Valley (PowerTree) Pacific Forest Trust (California Climate Action Registry) Conservation Fund (California Climate Action Registry) Utilities that Own Forestland (e.g., Pacific Gas & Electric, California) National Carbon Offset Coalition (Neil Sampson, The Sampson Group) Texas Forest Service (American Forest Foundation Pilot – Forest Management) Grossman Forestry Company (Michigan – Group Tree Farm Certification) The Delta Institute Conservation and Climate Initiative (Illinois, Michigan) The Carbon Fund (Mississippi) (Forestation and Forest Management) Merrill Lynch (Investing in Large Scale International Projects) The Nature Conservancy (Looking to Get into Markets) Lummi Indian Tribe – (Forest Conservation – Washington) Source: Matt Delaney, Delaney Forestry Services LLC

15. From Neil Sampson, The Sampson Group. Source: Ecosystem Marketplace and New Carbon Finance, State of the Voluntary Carbon Markets 2008 Volume of Carbon Offsets Being Traded

16. From Neil Sampson, The Sampson Group. Source: Ecosystem Marketplace and New Carbon Finance, State of the Voluntary Carbon Markets 2008 Forestry’s Share of the Market

17. Cap and Trade Markets Recognition of Offset Projects Uncapped Emissions Emissions Cap Google Images Allocation Capped Sector Baseline or Business as Usual Offset Provider Project Offset Exceedence Quality Assurances Additionality Permanence Measurability Reliability No Leakage

18. Carbon Accounting - Forestation Source: Cathcart, James F. 2000. Carbon sequestration – a working example in Oregon. Journal of Forestry 98(9): 32-37.

19. Carbon Accounting Source: The Pacific Forest Trust http://www.pacificforest.org/

20. Carbon Accounting – Wood Products and Substitution Source: Wilson, James. 2006. Using wood products to reduce global warming. Pp. 117-130 in Forests, Carbon and Climate Change. Portland, Oregon: Oregon Forest Resources Institute. 182 p.

21. Extra Slides

22. Cap and Trade Markets Uncapped Emissions Emissions Cap Google Images Allocation (Allowed Emissions) (% of Some Previous Level or Baseline)

23. Uncapped Emissions Emissions Cap Google Images Forest Management Baseline Allocation Emission Allocation for Maintaining the Forest Baseline Cap and Trade Markets Forestry Included