Bonn, 23rd May 2005

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Offsetting the UNFCCCs Emissions Lessons from
the WSSD and COP9 Presentation at SBI 22 Future
Forests The CarbonNeutral Company Bill Sneyd
- Operations Director
Bonn, 23rd May 2005
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Agenda

• Introduction to Future Forests
• Experiences from WSSD and COP9
• Motivations for UNFCCC programme
• A potential programme design framework

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Future Forests An experienced player in the
carbon market
Uniquely blending science and art to help
organisations set and achieve their carbon
management goals
Our end-to-end Carbon Management Process
Baseline
Vision
Options
Implement
Evaluate
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We have helped design 2 major CarbonNeutral events

• The Johannesburg Climate Legacy (JCL)
• Programme to offset emissions from the WSSD
• In collaboration with numerous international
  partners
• CarbonNeutral COP9
• Offsetting emissions from COP9 in Milan
• In collaboration with Kyoto Club and Italian
  Ministry of the Environment

Provides us with first hand experience of
potential and pitfalls of this type of program
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There are 4 critical elements in program design
Critical Success Factors
Emissions assessment

• Clear understanding of event scale / scope, well
  in advance
• Consensus regarding footprint methodology

Offset project selection

• Clear decision-making process
• Workable governance structure

Communication with participants

• Make it simple to participate
• Engaging campaign tailored to audience

Ensuring long-term integrity

• Transparent process
• Ongoing funding commitment to maintain
  (modified) governance structure

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The JCL Aiming to connect people to climate
change
Aim Invest in low / no carbon energy generation
and conservation projects in South Africa to
offset the global warming impact of the WSSD

• Desired results
• CarbonNeutral Summit
• Legacy of sustainable projects
• Build CDM capacity
• Engage and raise awareness
• Influence policy
• Inspire others

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The JCL Footprint dominated by air travel
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Multiple parties made the process slow and complex
Stakeholders
Role
Multi-stakeholder governing body
Run the JCL process
Verifier (KPMG)
Validate design of projects and verify delivery
of credits
Offset Projects
Deliver carbon offset according to contracts
Financial Manager (DBSA)
Manage flows of funds
Donors / Sponsors
Pay for carbon offset
Campaign Manager (Future Forests)
Raise funds, run communications campaign
Technical Working Group
Calculate footprint, screen offset projects
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Some significant results .

• 350,000 by the end of the Summit
• 1 in 5 delegates CarbonNeutral
• 43 contributions over 1,000
• 7 Government delegations
• gt 55 from business

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.. and lessons learned for the future

• Started consultation too late
• Governance was cumbersome (given time available)
• Difficult to gain access to event delegates prior
  to the event
• But .
• An excellent learning experience helping to
  kick-start CDM in South Africa and setting a
  precedent for future events

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COP9 was the first UNFCCC event to be
CarbonNeutral

• Aims
• Offset emissions from COP9
• Demonstrate proactive stance of Italian
  government business
• Audiences
• COP9 participants
• Italian public
• Footprint 5,500tCO2 (85 air travel)

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Fewer parties simplified decision-making
Stakeholders
Role
Client (The Kyoto Club)
Fundraising, finance, local communications
Campaign Manager (Future Forests)
Design, communications, offset sourcing
Deliver carbon offset according to contracts
Offset Projects
Audit Future Forests Carbon Management process
Verifier (KPMG)
Fund carbon offset and communications
Sponsors
A simple client (Kyoto Club) / supplier (Future
Forests) relationship facilitated communication
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CarbonNeutral COP9 Results and lessons learned

• Results
• 100 of emissions offset
• Funding primarily from Italian government
  (national local)
• Communications to delegates, press and local
  media
• Catalyst for formation of Azerro CO2 to build
  voluntary offset market in Italy

• Lessons learned
• Single coordinating entity (Kyoto Club)
  facilitated decision-making
• As with JCL, difficult to gain access to event
  delegates prior to the event
• Reach of local Italian communications campaign
  could be improved - media partners finalised
  quite late

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Why is the UNFCCC considering offsetting its
emissions ?
Reasons for offsetting
Motivation for UNFCCC ?
Enhance reputation
? potentially
Endorse the voluntary market
? - potentially
Encourage others to follow suit
? - potentially
Meet stakeholder expectations
? - potentially
Make a material reduction in CO2 emissions
No emissions volume low
Save costs
No
The UNFCCC must be clear about why it wants to
offset, before determining how best to design
its programme
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Visibility and integrity are critical design
criteria
Objectives for UNFCCC climate neutral initiative
Critical programme design attributes
Enhance reputation

• Integrity
• Rigorous assessment using respected protocols
  (e.g. WRI/WBCSD)
• Transparency
• Commitment to reductions
• Quality offset projects
• Visibility
• Connect to key stakeholders (Parties, delegates,
  observers, media, public in host cities,
  corporates.)
• Polluter pays charge levy to event delegates
  (underwritten by sponsor ?)
• Communicate internally
• Communicate externally (media wider public)

Endorse the voluntary market
Encourage others to follow suit
Meet stakeholders expectations
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Bill Sneyd bill.sneyd_at_futureforests.com Tel
44 (0)7968 551187