Presentation by John Gunn, Senior Program Leader, Manomet CCenter for Conservation Sciences, at the Blandin Foundation sponsored Forest Values and Carbon Markets: Opportunities for Minnesota conference. February 25-26, 2009 at the Cloquet Forestry Center, Cloquet MN

1. John Gunn, Ph.D. Senior Program Leader Manomet Center for Conservation Sciences Brunswick, Maine 26 February 2008 06/08/09 Minnesota North Woods Carbon Partnership: Cass and Aitkin County Land Departments Case Study

4. Basic Elements of the Major Forest Carbon Offset Standards 06/08/09 Standard Baseline Additionality Permanence CCX Base Year =Growth – Harvest 15 years VCS 5-10 Years Prior Practices Permanent CCAR Regulatory Practices Perm. Easement

6. CCX (a) vs. VCS (b) Additionality =“improved” forest management category

16. Eligible Pools 06/08/09 Category Carbon Pool Above Ground: Living Tree biomass Shrubs and Herbaceous Understory Above Ground: Dead Standing Dead Coarse and Fine Woody Material Litter Below Ground Soil organic Live Roots Off-site Wood Products

17. Mean Net Annual Change: ACLD = -63,717 MTC CCLD = -97,052 MTC

19. Eligible Carbon Summary NOTE: 1 MT Carbon =3.667 MTCO2 equivalent (MTCO2e) Source: US EPA $90,496 - $135,744 $98,064 – $147,096 ACLD Potential Revenue (annual) $4.00 - $6.00/ MTCO2e 6,169 MTC – or 22,624 MTCO2e NA -63,717 MTC or -233,650 MTCO2e ACLD 6,685 MTC – or 24,516 MTCO2e NA -97,052 MTC or -355,889 MTCO2e CCLD ACLD Eligible MTCO2e (annual) CCX Potential Revenue (annual) $2.00/ MTCO2e CCX Eligible MTCO2e (annual) County