The Pacific Forest Trust and Natsource Announce
New York, NY and San Francisco, CA—The Pacific Forest Trust (PFT) and Natsource Asset Management
LLC (Natsource) announced today the completion of a landmark transaction of certified forest carbon
dioxide (CO2) emissions reductions. Natsource, a leading emissions and renewable energy asset manager,
bought 60,000 tons of carbon emissions reductions on behalf of its clients from a private forest owner
represented by PFT. The emissions reductions were created through sustainable forestry on a permanently
conserved property in California. This deal illustrates the significant role that management of existing
forests can play in addressing climate change. The transaction is the first commercial delivery of certified
emissions reductions under the Forest Protocols adopted last fall by the California Air Resources Board
(CARB). The Protocols are the first rigorous governmental accounting standards in the U.S. for climate
projects embracing forest management and avoided deforestation, while ensuring emissions reductions are
real, permanent, additional and verifiable.
“Today marks a significant milestone for the recognition of the real benefits of conserving and managing
U.S. forests to enhance their climate contributions,” announced PFT president Laurie Wayburn. “Investing
in the power of forests to protect our climate is a practical action that can and should be taken now to
reduce CO2 in our atmosphere. We are hoping that deals like this will provide policymakers around the
world with the confidence they need to ensure that forestry becomes part of the solution to address climate
change.”
CARB’s leadership in adopting the Forest Protocols is helping to stimulate a new asset class in global GHG
emissions markets, validating forests as a cost-effective means to achieve real GHG reductions. The Forest
Protocols, which are administered by the non-profit California Climate Action Registry (CCAR), can be
used as a model to ensure that forests be used to achieve enduring benefits and become a solution in the
fight against climate change.
“Until now, forest sequestration has been an untapped asset in the effort to address climate change,” said
Jack Cogen, Chief Executive Officer of Natsource. “Forestry can and should be an important part of the
portfolio of climate change solutions moving forward. This deal illustrates that when rigorous, clear rules
are adopted, these investments can reduce costs for our compliance customers and provide what we believe
are attractive investment opportunities. Natsource participated in this transaction because it complied with
Helen Pelzman
Public Affairs Director
Voice: 415-561-0700 x17
Mobile: 415-425-4136
Laurie Wayburn
President
Voice: 415-561-0700 x14
Richard Rosenzweig
Chief Operating Officer
Voice: 202-496-1423 x230
Mobile: 202-841-7276
Sharron Silvers
Gavin Anderson & Company
Voice: 212-515-1931
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FOR IMMEDIATE RELEASE – MONDAY, FEBRUARY 11, 2008
California’s rigorous standards, and we believe that this will ensure that the sequestration will provide
enduring environmental and economic benefits.”
The CO2 emissions reductions purchased by Natsource clients were created by PFT’s Van Eck Forest
Project, in Humboldt County, CA, that uses the CO2 storage capabilities of a working redwood forest.
Owned by the Fred M. van Eck Forest Foundation, the 2,200acre forest is permanently protected by
a conservation easement. It is managed by the Pacific Forest Trust to increase carbon stores, restore
biodiversity and produce sustainable timber supplies.
The revenue from the purchase of some of the emissions reductions already generated by this project will
help finance the ongoing forest stewardship activities that will enable the forest to remove an estimated
500,000 more tons of CO2 from the atmosphere than would otherwise occur over the next 100 years – all
while still supplying substantially the same volume of wood products from the property that would have
been harvested under conventional management. Carbon sequestration is enhanced on the Van Eck Forest
by preventing business-as-usual logging of all the substantial volume of standing timber on the property
and by ensuring that selective harvest practices remove less timber volume than is grown, allowing carbon
stores to permanently increase.
The project’s emissions reductions are calculated using the scientific accounting standards of the Forest
Protocols, based on a detailed inventory of the forest and the effects of management parameters secured
by the permanent conservation easement. These calculations have been registered with CCAR after
independent third party certification by SGS, the world’s leading inspection, verification, testing and
certification company, working with Scientific Certification Systems, the leading U.S. forestry certification
company. Project data is available to the public from CCAR.
“Dangerous levels of CO2 in our atmosphere are the result of fossil fuel combustion and forest loss,”
continued Wayburn. “To successfully stabilize our climate, we must address both sources. Preventing
forest loss and increasing net sequestration through projects that meet rigorous standards, such as those in
California, can secure lasting emissions reductions.”
As the first asset manager to purchase Van Eck Forest emissions reductions, Natsource joins an impressive
group of climate leaders that have invested in the power of working forests through the Van Eck Forest
Project, including U. S. House Speaker Nancy Pelosi, California Governor Arnold Schwarzenegger,
California Assembly Speaker Fabian Nuñez (D) and California Environmental Protection Agency Secretary
Linda Adams.
“I applaud Natsource for investing in the long-term climate benefits of California’s forests. Natsource’s
leadership shows that global capital will flow to projects that meet rigorous international standards reducing
emissions of CO2,” commented Mary Nichols, Chairman of the California Air Resources Board, the lead
agency for implementing the state’s Global Warming Solutions Act.
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About the Pacific Forest Trust
The Pacific Forest Trust (PFT) is the nation’s leading non-profit organization dedicated to protecting
America’s private working forests for their many public benefits, including climate stabilization. In
California, PFT has been instrumental in advancing the role of forests in the state’s climate change
programs, including the development of the Forest Protocols. Nationally, PFT published two landmark
reports: “America’s Private Forests: Status and Stewardship” (Island Press 2001) and “Forest Carbon in the
United States.” Through its Working Forests, Winning Climate initiative, PFT is advising state governments
and federal leaders about the inclusion of forest conservation and sustainable management in climate
policies, markets and best-practices.
To learn more about the Pacific Forest Trust, please visit: www.pacificforest.org
About Natsource LLC
With $1.2 billion in assets under management, Natsource is a leading provider of asset management,
origination, and advisory and research services in global emissions and renewable energy markets.
Natsource manages the Greenhouse Gas Credit Aggregation Pool (“GG-CAP”) which has approximately
US $800 million (€560 million) in committed capital. GG-CAP purchases greenhouse gas compliance
instruments created by projects that its participants can use to comply with emission reduction targets
from 2005-2012. Natsource Asset Management LLC manages approximately $400 million in private
investment vehicles and managed accounts. It attempts to use its regulatory, market and trading expertise
to opportunistically develop, hold and resell a portfolio of environmental assets with the goal of providing
superior returns to clients.
To learn more about Natsource Asset Management, please visit: www.natsource.com
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