We are committed to staving off a disastrous rise in global temperatures by accelerating the pace of carbon mitigation through increased deployment of finance. To expedite the pace of project development, we have found that early-stage funding is critical—offering greater potential for impact and supporting a vital stage of project development.
Climate Trust Capital (CTC), an independent firm of the mission-driven nonprofit The Climate Trust, is launching a first-of-its-kind investment fund to channel large volumes of financing into early-stage carbon projects that will generate offsets. Fund I will be the first in a series of CTC-led investment funds built to appeal to institutional and impact investors. We are currently deploying funding in our preferred sectors—forestry, grassland conservation, and livestock digesters—and plan to incorporate additional sectors as our investment fund scales. Our active involvement with projects supports healthy yields of credits and fruitful revenues from their sale as carbon market prices continue to increase as anticipated.
CTC is assembling additional impact investment dollars into the carbon fund. We offer projects up to one half of the overall carbon credit value as an upfront investment—determined in part by the current market carbon price and the projected credit volume over 10 years. The upfront investment can be used for requisite costs such as development, land acquisition, and verification. CTC manages the sale of the carbon credits on behalf of the project, first recovering its investment and then sharing all remaining carbon revenues with the project owner.
The Trust leverages almost two decades of experience working in domestic carbon markets, and is in a unique position to manage the price and delivery risks associated with investing in carbon projects through Climate Trust Capital.
In order for CTC to consider your project, you must first submit an application for conservation finance. Be prepared to describe your project so we can understand its eligibility and quantify its emission reductions. Our timeline is dependent upon factors such as project owner turnaround that may accelerate or slow the process, however a typical cycle is approximately nine months.
For 18 years, The Trust has played an integral role in climate finance. Under the mandate of the Oregon Carbon Dioxide Standard, The Trust has been responsible for acquiring carbon offsets, and selecting and managing pollution reduction projects on behalf of regulated utilities.
Since its inception, The Trust has committed $34 million to projects that will reduce 5.5 million tons of carbon dioxide across a broad array of sectors. We expect to deploy $5.5 million to projects in 2016, and then an additional $10 million over 2017 and 2018.
With our years experience investing in projects, The Trust is well positioned as an investor and carbon manager. Our success is based on our technical proficiency with offset protocols and emerging carbon market policies, as well as our track record commercializing carbon credits in both the voluntary and compliance markets.
The Trust and CTC leverage four distinct traits in executing our upfront funding model; traits that deliver for our partners.
CTC works to accelerate project implementation, and develop financing solutions for forestry, grassland conservation, and livestock digester projects. At this time, we are seeking project proposals from experienced project owners and developers in the following domestic offset sectors: Improved Forest Management (IFM), Avoided Conversion forestry (AC), Avoided Conversion of Grasslands (ACoGS) and Livestock Manure Digesters. Apply for conservation finance.
Click Blue Banners to Expand
Livestock digesters have the unique potential to rapidly scale-up climate solutions. Digester projects offer a host of beneficial revenue streams, from improving the economic and environmental performance of dairies, to clean energy, organic fertilizer, and diverting waste from landfills. Furthermore, there is a growing demand for livestock digester carbon offsets in compliance and voluntary carbon markets. We consider projects that operate under California Air Resources Board’s Livestock Projects Protocol, and may consider projects on a case by case basis that operate under CAR’s U.S. Livestock Project Protocol Version 4.0.
Implementation of sustainable land management practices has the potential to increase stored carbon, provide habitat for a rich diversity of flora and fauna, and enhance recreational opportunities in local communities. The Trust’s forestry team finances U.S. forestry projects that have the potential to increase carbon sequestration working with land trusts, private owners and timber management companies. Encouragingly, forestry projects recently became the largest source of offsets for California’s cap-and-trade program. We primarily consider projects that operate under the California Compliance Offset Protocol U.S. Forest Projects; and may consider projects on a case by case basis that operate under ACR’s Improved Forest Management for Non-Federal U.S. Forestlands Protocol, ACR’s Improved Forest Management for U.S. Timberlands Protocol, CAR’s Forest Project Protocol, and VCR’s Methodology for Improved Forest Management: Conversion from Logged to Protected Forest Version 1.2.
Learn more in our FAQ: Forest Carbon Projects.
Over the past decade several economic and policy driven factors have led to the increased cultivation of corn and soybeans in the United States. To a large extent, this has resulted in the conversion of intact grasslands into commodity crop production. Increased crop production leads to increased tilling, which has adverse environmental impacts through higher rates of soil erosion, decreased water quality, and the loss of below ground carbon. In order to address this issue and help reduce the pressure to convert grasslands into croplands, new protocols have been developed for quantifying the greenhouse gas benefits gained through the avoided conversion of grass and shrublands. We consider projects developed under both methodologies—CAR’s Grassland Project Protocol Version 1.0, and ACR’s Avoided Conversion of Grasslands and Shrublands to Crop Production.
“The Bank and The Climate Trust have shared values that include encouraging social and environmental change through our impact investments in Oregon, Washington and California communities. We are proud to share a common mission that is focused on sustainable solutions that endure.”
©2016 The Climate Trust. Handcrafted by Illusio Design