Working Forest and Conservation

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Working Forest and Conservation

• Presentation to
• MD Governors Forestry Commission

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Working Forests- Three Core Strategies

• Prevent the conversion of forestland to other
  uses
• Maintain the economic reasons to keep forests as
  forests-a viable industry in MD
• Increase public confidence in and support for
  sustainable forestry practices

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TNCs approach

• Protecting forests is too big a task for any one
  groupwe need to work together.
• Success will require building a new tool kit of
  working forest easements, tax policy,
  conservation planning and incentives

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Protecting Forests Working forest easements

• Parsonfield, Maine10,000 acre working forest
• Property up for development into 15 parcels
• TNC partnered with private investor to buy the
  property. Investor gave TNC option to purchase
  an easement to buy time for us to raise
• TNC, working with state legacy program obtained
  the funds to purchase easement with donation from
  town and private fund raising- 2.5 m total.
• Land protected from development but will remain
  in working forest
• In four state area of NY, VT, NH, ME TNC has
  helped purchase 2.5 million acres of working
  forest easements
• Cost 300 million w/ State/Federal providing
  close to 100 m, private investors providing over
  100 m

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Protecting Forests State and Town Forests

• Nash State Forest- NH 49,000 acres
• Errol Town Forest NH 2,000 acres
• Randolph Town Forest NH 6,000 acres
• Properties funded by bond issues, private
  fundraising and forest legacy. All are managed
  as working forests

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Supporting the Industry Great Northern Paper
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Supporting the Industry Great Northern Paper

• TNC purchases 50 m in GNP debt from other lender
• Trades 14 m in debt for 41,000 acres of reserves
  
• Provides company with a lower interest rate note
  in exchange for easement on 200,000 acres of key
  conservation land (36 m,7 years _at_4. 4 is
  currently the cost of TNC capital)

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Supporting the Industry Tax Credits

• Federal New Market Tax Credits have been used to
  help private investors purchase forest land in
  exchange for conservation easements
• 5 projects totaling 129 m in tax credits linked
  to conservation on 1.5 million acres so far. MD
  has many counties eligible
• NMTC used to refinance 2 paper mills (ME) and
  pallet manufacturer (NM)
• Expanding MDs state programs (current use,
  tradable tax deductions on gifts of easements -
  CO, VA)

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Supporting the Industry Ecosystem Services-
Carbon markets

• TNC has been major proponent of developing
  markets for carbon linked to protecting and
  restoring forests
• 6 projects in US and overseas- 35 m in
  investment by utilities to reduce greenhouse
  gases
• Opportunity to work with NE governors to create
  regional market for greenhouse gases

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Building public support MA State Forests

• Forest harvesting had ground to a halt in most
  state owned land due to public concern over
  harvesting
• TNC in partnership with state help broker a new
  strategy
• State designation of ecological reserves on
  about 20 of state lands
• Certification of other state lands by third party
  programs
• Early indications are that with proper controls,
  the public can accept long term forest management
  as a tool for public lands.

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Building Public Support Certification

• TNC on boards of both FSC and SFI programs
• The Maine example Governors commitment to have
  75 of its working forest certified lead to Time
  inc increasing paper purchases by 19.

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Conservation and Working Forests- Yes!

• We can help each other
• Build community commitment to protecting forests
  by proactive strategy of conservation and
  industry working together.