1. by Michelle Passero Director of Policy Initiatives A Presentation for the West Coast Regional Carbon Sequestration Partnership October 28, 2004 Overview of a Conservation-based Forest Management Project

2. ABOUT PFT Mission: To preserve, restore, and enhance private productive forestlands We are: 1) A policy institute promoting incentives for long-term forest stewardship: - forest carbon market (projects & policy) - conservation easements 2) A land trust for working forestlands (CA, OR & WA) 3) An information, education & research center

3. PFT Forest Projects General project type: –conservation-based forest management –preserve existing C stocks and sequestering more over time Geographical focus –CA, WA and OR –Previous projects in northern California (approx. 6000 acres)

4. PFT Transactions Executed two transactions to offset CO 2 emissions –Green Mountain Energy & Future Forests (non-regulatory compliance) –Banked carbon GHG reductions/offsets –Standard purchase and sale agreement –Approx. 10,000 tons CO 2 Use conservation easements to secure carbon gains & project principles

5. Forest Project Principles Baseline/Additionality Permanence/duration Leakage Local conservation co-benefits Third party verification Annual monitoring

6. Quantification of CO 2 Reductions Stock change accounting –Quantify changes in C stocks over time (relative to baseline) –“Additional” carbon stocks = GHG reductions/offsets Based on modified standard forest inventory –Carbon pools include standing and lying dead biomass & above/below- ground live biomass

7. Factors that influence project cost include: Size and duration of project Forest carbon inventory –Diversity of species & structure –Desired level of accuracy/precision Modeling Ongoing monitoring Certification/verification requirements

8. Michelle Passero Director of Policy Initiatives The Pacific Forest Trust 416 Aviation Blvd., Suite A Santa Rosa, CA 95403 (707) 578 - 9950, ext. 18 Mpassero@Pacificforest.org Thank you.