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
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Friday, October 1, 2010

3. 3
Ecosystem Services
Friday, October 1, 2010

4. 4
Headed for ecological
overshoot without pricing?
Friday, October 1, 2010

5. 5
Already there!
Friday, October 1, 2010

6. The Drivers of Deforestation
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Friday, October 1, 2010

7. 7
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
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Friday, October 1, 2010

10. .
10
Friday, October 1, 2010

11. Where are We?
11
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12. Where are We?
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13. 13
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14. “Green Carbon”
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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
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16. And less capital intensive...
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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
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Friday, October 1, 2010

19. Regional Carbon Markets
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HI
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Friday, October 1, 2010

20. AB 32 is 72 policies - all under fire
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Friday, October 1, 2010

21. The campaign to kill AB 32
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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

23. 23
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
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Friday, October 1, 2010