Pioneering PFT Carbon Deal
Curbs Warming, Conserves Forests

Santa Rosa, Calif. -- Illustrating the key role that conservation and sustainable management of forests can play in slowing global warming, the Pacific Forest Trust has concluded its first sale of forest-derived carbon dioxide emissions offsets to London-based Future Forests Ltd.

"Private entities are clearly forging ahead with global warming solutions despite the continued national debate over a global warming strategy," said PFT President Laurie Wayburn. "This transaction demonstrates the valuable role that American forests play in mitigating global warming through forest conservation and improved forest management. "

Future Forests is buying 7,500 tons of carbon dioxide emissions offsets from PFT in anticipation of demand from clients seeking to voluntarily offset their emissions. The emissions offsets result from long-term improved management practices that increase forest carbon stores. The emissions offsets are secured in perpetuity by a conservation easement.

"To date, our forestry offsets have been based on new tree planting," said Sue Welland, founder of Future Forests. "We are pleased to be involved in this new kind of transaction based on conservation and sustainable forest management because of the multiple benefits it provides from global warming mitigation through older forest and wildlife habitat protection. It is precisely this kind of project, with high added environmental value, that will help to grow the carbon market in a responsible way, engaging broad audiences in tackling climate change."

"A key to the development of a robust global market for greenhouse gas emissions trading is a diversity of sequestration and reduction sources," said Michael Intrator, managing director for global emissions trading at Natsource LLC, which facilitated the transaction. "Forest-derived offsets are emerging as an important supply option. This trade between the Pacific Forest Trust and Future Forests should provide considerable momentum behind these types of projects."

The emissions offsets sold to Future Forests were secured by perpetual conservation easements on 5,000 acres of privately owned forestland in California on which PFT owns carbon rights. PFT's easements house numerous threatened and endangered fish and wildlife species -- including coho salmon, spotted owls, peregrine falcons and marbled murrelets -- and contain stands of old-growth redwoods and Douglas fir. In addition, the easements protect important watersheds and municipal water supplies.

Forests are a natural carbon sink, absorbing and storing carbon through photosynthesis. Due to forest loss and unsustainable management, however, forests are the second-largest source of global carbon dioxide emissions. Emissions offsets are created by managing forests more sustainably to increase net carbon stocks.

This provides a "win-win" for the environment and the economy -- combating global warming and restoring forests to health, while at the same time meeting the financial needs of forest landowners. The United States is well-situated to participate in a forest carbon market because of its established legal system, vast amounts of forest in private hands and forest conditions. Forests in the Pacific Northwest have some of the greatest potential for carbon accumulations of any ecosystem on earth.

"It's ironic that while some pit the economy against global warming solutions, it's the private sector that is forging ahead," observed Wayburn. "Americans can either take advantage of our competitive position in forest carbon or get left behind."

Supplementing the initiatives of private companies, several states, including California, are also recognizing both the economic and environmental benefits of a forest carbon market. California's Climate Registry encourages entities to start voluntarily reducing their greenhouse gas emissions. Recognizing the synergy between forest stewardship and global warming mitigation, California State Sen. Byron Sher (D-Stanford), who led the effort to establish the Registry, introduced SB 812, which provides essential guidelines for the registration of forest carbon emissions, stores and reductions.

The deal between PFT and Future Forests drew praise from Andrea Tuttle, director of the California Department of Forestry and Fire Protection, who said: "The Pacific Forest Trust's continuing leadership and vision help make California an international leader in efforts to protect the environment and address the growing problem of global climate change."