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EKO on Ecosystem Markets:
Road to Somewhere?
Friday, October 1, 2010
About EKO
Vision: Put a price on nature’s services that
reflects their true value to preserve them:
clean air, water, biodiversity
Mission: Catalyze institutional strength capital
for projects, firms and funds in ecosystems
markets
Our equity investors:
David Blood, Wolfensohn & Co., Peter Wheeler,
Lord Jacob Rothschild, Sunil Paul, Larry Lunt,
Colin Leduc, KL Felicitas, Richard Kauffman, Ben
Goldsmith, Aimee Christensen and Carter Bales
2
Friday, October 1, 2010
3
Ecosystem Services
Friday, October 1, 2010
4
Headed for ecological
overshoot without pricing?
Friday, October 1, 2010
5
Already there!
Friday, October 1, 2010
The Drivers of Deforestation
6
Friday, October 1, 2010
7
Friday, October 1, 2010
Size and Growth of Markets
8
Ecosystem market sizes in millions of dollars – historical and estimated future
US carbon at $80b in
2012-13 assumes
regulated US carbon
market.
Friday, October 1, 2010
Carbon Markets
9
Compliance markets
Cap and trade/“Price on carbon”
$144b or 8,625 MtCO2e in 2009
Geographic coverage (mostly EU)
15% Offsets by volume (tons)
Voluntary markets
Value based on “quality” of reductions
$388m or 94 MtCo2e in 2009
Global in supply; demand driven by U.S. and EU
!"#$%"&'%()*+,&-&.(%/,%01#/&2#"34*,&5&2%"3*,&67889:&
;<#+#& 2#"3/+%(<&=#/>;<#+#&
?@&?.A&
!"#$!%&'()$*%
+,,-./0%
B!!C&
-,#%&'()$*%
+$.10%
=AD&
#2%&'()$*%
+3.,$0%
EF'&
,"$!!%&'()$*%
+$3.$0%
GG@,&
,//%&'()$*%
+$.30%
2#"3/+%(<&
H.EI&
/#%&'()$*%
+3.##0%
EEJ&
2,%&'()$*%
+3.3/0%
!"#$%&'()*+#,-./*0#12&/3%4*+5#
G"$*(+%&
/%&'()$*%
+3.3!0%
KC&
$!%&'()$*%
+3.#/0%
Friday, October 1, 2010
.
10
Friday, October 1, 2010
Where are We?
11
Friday, October 1, 2010
Where are We?
12
Friday, October 1, 2010
13
Friday, October 1, 2010
“Green Carbon”
14
Forests, agriculture and soil carbon have historically been outside of
regulated carbon markets, although always critical to voluntary markets
Front and center now with development of the US and post-Copenhagen
Forestry carbon already a part of leading pre-compliance US market: CA
Recognition that forestry, soil and agricultural carbon make up 25-30% of global
GHG problem; REDD being one of the few successes of Copenhagen
Ag states and interests have a powerful voice - used it to influence the Waxman-
Markey bill, changing the politics of climate change
Coalition on Agricultural GHG’s (C-AGG) aggregating science and policy
Friday, October 1, 2010
The Least Expensive Solutions
15
Friday, October 1, 2010
And less capital intensive...
16
Friday, October 1, 2010
12
Offsets of Interest: Major GHG
Impacts ...and Political Weight Too
9
Agricultural practice changes
• Conservation tillage / No-till
• Crop rotations
• Modified fertilizer techniques
• Winter cover crops
• Perennial crops
• Biochar
Forestry
• Sustainable forest management
• Afforestation / Reforestation
• Avoided deforestation
Other Land Use changes
• Grasslands restoration
• Rangeland management
• Wetlands restoration / peat bogs
Friday, October 1, 2010
Key Democrats and K (G) L
18
Friday, October 1, 2010
Regional Carbon Markets
19
HI
!""#$%$&'()*+,'-.$
/""!0%$&'()*+,'-.$$
12#$3$4567(87($$
12#$%$&'()*+,'-.$
!"#$%&'()*#+,),%-#./)0)1#23'34)34)1#
25)34'6)1#74%85#9%5*1#+5*5:)1#
;)<)46'=)->#)6-5#5?-%:8'*@#A2BC#
!D#2)*)E')*#F:58'*(%-#.+)-G),(3%H)*1#
758)#+(5I)1#J4G5*>#)6-5#5?-%:8'*@#A2BC#
/""!0$%$4567(87($
Friday, October 1, 2010
AB 32 is 72 policies - all under fire
20
Friday, October 1, 2010
The campaign to kill AB 32
21
DONOR AMOUNT
VALERO $1,550,000
TESORO $625,000
ADAM SMITH FOUNDATION $498,000
OCCIDENTAL PETROLEUM $300,000
HOWARD JARVIS TAXPAYERS $200,002
TOWER ENERGY $200,000
WORLD OIL $200,000
ROBINSON OIL $125,000
NAT'L PETROCHEMICAL $100,000
THE CALIFORNIA TRUCKING $50,000
MURRAY ENERGY $30,000
BERRY PETROLEUM COMPANY $25,000
CAMINOL MANAGEMENT CO. $25,000
BOYETT PETROLEUM $25,000
OTHER DONORS >$10K $93,000
TOTAL $4,046,002
Friday, October 1, 2010
22
In Short...
Three key trends in carbon:
US building a $90b+ carbon market
from scratch
CA regulated market trading already
Strong interest in “Green Carbon”
Other ecosystems pricing need
similar regulatory drivers
Long-term: pricing of
ecosystems and their services
will create more mega-markets
Friday, October 1, 2010
23
Friday, October 1, 2010
Jason Scott
EKO Asset Management
Partners
1350 Avenue of the
Americas, 29th floor
NY, NY 10019
212.974.011
jscott@ekoamp.com
24
Friday, October 1, 2010

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SOCAP10: Jason Scott, EKO Asset Mgmt Partners

  • 1. EKO on Ecosystem Markets: Road to Somewhere? Friday, October 1, 2010
  • 2. About EKO Vision: Put a price on nature’s services that reflects their true value to preserve them: clean air, water, biodiversity Mission: Catalyze institutional strength capital for projects, firms and funds in ecosystems markets Our equity investors: David Blood, Wolfensohn & Co., Peter Wheeler, Lord Jacob Rothschild, Sunil Paul, Larry Lunt, Colin Leduc, KL Felicitas, Richard Kauffman, Ben Goldsmith, Aimee Christensen and Carter Bales 2 Friday, October 1, 2010
  • 4. 4 Headed for ecological overshoot without pricing? Friday, October 1, 2010
  • 6. The Drivers of Deforestation 6 Friday, October 1, 2010
  • 8. Size and Growth of Markets 8 Ecosystem market sizes in millions of dollars – historical and estimated future US carbon at $80b in 2012-13 assumes regulated US carbon market. Friday, October 1, 2010
  • 9. Carbon Markets 9 Compliance markets Cap and trade/“Price on carbon” $144b or 8,625 MtCO2e in 2009 Geographic coverage (mostly EU) 15% Offsets by volume (tons) Voluntary markets Value based on “quality” of reductions $388m or 94 MtCo2e in 2009 Global in supply; demand driven by U.S. and EU !"#$%"&'%()*+,&-&.(%/,%01#/&2#"34*,&5&2%"3*,&67889:& ;<#+#& 2#"3/+%(<&=#/>;<#+#& ?@&?.A& !"#$!%&'()$*% +,,-./0% B!!C& -,#%&'()$*% +$.10% =AD& #2%&'()$*% +3.,$0% EF'& ,"$!!%&'()$*% +$3.$0% GG@,& ,//%&'()$*% +$.30% 2#"3/+%(<& H.EI& /#%&'()$*% +3.##0% EEJ& 2,%&'()$*% +3.3/0% !"#$%&'()*+#,-./*0#12&/3%4*+5# G"$*(+%& /%&'()$*% +3.3!0% KC& $!%&'()$*% +3.#/0% Friday, October 1, 2010
  • 11. Where are We? 11 Friday, October 1, 2010
  • 12. Where are We? 12 Friday, October 1, 2010
  • 14. “Green Carbon” 14 Forests, agriculture and soil carbon have historically been outside of regulated carbon markets, although always critical to voluntary markets Front and center now with development of the US and post-Copenhagen Forestry carbon already a part of leading pre-compliance US market: CA Recognition that forestry, soil and agricultural carbon make up 25-30% of global GHG problem; REDD being one of the few successes of Copenhagen Ag states and interests have a powerful voice - used it to influence the Waxman- Markey bill, changing the politics of climate change Coalition on Agricultural GHG’s (C-AGG) aggregating science and policy Friday, October 1, 2010
  • 15. The Least Expensive Solutions 15 Friday, October 1, 2010
  • 16. And less capital intensive... 16 Friday, October 1, 2010
  • 17. 12 Offsets of Interest: Major GHG Impacts ...and Political Weight Too 9 Agricultural practice changes • Conservation tillage / No-till • Crop rotations • Modified fertilizer techniques • Winter cover crops • Perennial crops • Biochar Forestry • Sustainable forest management • Afforestation / Reforestation • Avoided deforestation Other Land Use changes • Grasslands restoration • Rangeland management • Wetlands restoration / peat bogs Friday, October 1, 2010
  • 18. Key Democrats and K (G) L 18 Friday, October 1, 2010
  • 20. AB 32 is 72 policies - all under fire 20 Friday, October 1, 2010
  • 21. The campaign to kill AB 32 21 DONOR AMOUNT VALERO $1,550,000 TESORO $625,000 ADAM SMITH FOUNDATION $498,000 OCCIDENTAL PETROLEUM $300,000 HOWARD JARVIS TAXPAYERS $200,002 TOWER ENERGY $200,000 WORLD OIL $200,000 ROBINSON OIL $125,000 NAT'L PETROCHEMICAL $100,000 THE CALIFORNIA TRUCKING $50,000 MURRAY ENERGY $30,000 BERRY PETROLEUM COMPANY $25,000 CAMINOL MANAGEMENT CO. $25,000 BOYETT PETROLEUM $25,000 OTHER DONORS >$10K $93,000 TOTAL $4,046,002 Friday, October 1, 2010
  • 22. 22 In Short... Three key trends in carbon: US building a $90b+ carbon market from scratch CA regulated market trading already Strong interest in “Green Carbon” Other ecosystems pricing need similar regulatory drivers Long-term: pricing of ecosystems and their services will create more mega-markets Friday, October 1, 2010
  • 24. Jason Scott EKO Asset Management Partners 1350 Avenue of the Americas, 29th floor NY, NY 10019 212.974.011 jscott@ekoamp.com 24 Friday, October 1, 2010