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www.celestialgreenventures.com
www.celestialgreenventures.com
CONTENTS
• ExecutiveSummary
• VoluntaryEmissionReductions(VER’s)andREDD
• REDDasanInvestment
• ECOasourStandard
• InvestinginVER’swithCelestialGreenVentures
• Contactus
“To look at a forest and only see trees, is to look at an ocean and only see water”CiaranKelly,CEO,CelestialGreenVenturesPLC
Inside front cover pic: © CGV
ExecutiveSummary
CelestialGreenVenturesPLC(CGV)isaCarbonProjectDevelopmentCompanyholdingthecarboncreditrightstoanareaoflandinexcessof20millionhectaresofvulnerablerainforestintheAmazonregionofBrazil.
ListedontheOpenMarketoftheFrankfurtStockExchangeundertheticker9CG,CelestialGreenVenturesisaimingtobecometheleadingglobalsupplierofREDD1carboncreditsintheVoluntaryCarbonMarket.
Throughstrongethicalcommitments,high-qualitycarboncreditsandtransparentreporting,CGVprojectswillbenefittheclimate,thecommunitiesandtheinvestorsthatengageintheprojects.
Company Philosophy
• Toproducehigh-quality,low-costREDDcarboncredits
• Forallprojectstohavecompulsoryinclusionofecosystembenefits
• Tocarryoutallprojectswithtransparency
• Touselocalexpertiseandknowledgeoftheprojectareasandengagelocalparticipation
• Tobecometheleadingcarboncreditinvestmentcompany
• DevelopcarbonprojectsthatadheretothehighestqualityStandard
• Tocreateafusionbetweenenvironmentandprofitableinvestment
Tofulfiltheseobjectivesandtosuccessfullyimplementthemwithinthedevelopmentoftheirproject,CGVhave:
• MadeimportantStrategicAllianceswithlocalBrazilianorganisationssuchasAmazoniaLivreandINABRA;
• EngagedwiththeEcosystemCertificationOrganisationNaturalForestStandardforthevalidationandverificationoftheircarboncreditprojects;
• SignedcarbonrightscontractswithacombinationofMunicipalities,IndigenousTribesandPrivateLandowners.
AllCGVprojectshavea30yeardurationaffordinglong-termbenefitsandaprofitablefuturetobothprojectparticipantsandinvestorsalike.
31ReducedEmissionsfromDeforestationandForestDegradation-REDD
© CGVMunicipality of Borba, Amazonia, Brazil
VoluntaryEmissionReductions(VER’s)andREDD
TheVoluntaryCarbonMarketislucrativeandbooming,enjoyinggrowthwhereothermarketsaredeclining.Whilstoffsettingemissionsisaprimarybuyermotivation,itisincreasinglyCorporateSocialResponsibilityandBrandEnhancementthatisleadinginvestorstowardsthecarbonmarket.
TheVoluntaryCarbonMarketgrew34%intheyear2009-2010i,transacting131milliontonsCO2e(MtCO2e),worthatleast$424millionwhilsttheMandatoryCarbonMarkethasseenadeclineinthesameyear,duetoalackofclarityoverthe2012deadlineoftheKyotoProtocol,withtheCDMmarketatitslowestsincetheKyotoProtocolwasintroducedin2005,dropping46%.CurrentpredictionsofgrowthwithintheVoluntaryMarketexpectarapidincreaseinmarketsize,reaching1.6billionMtCO2eby2020.
CarboncreditswithintheVoluntaryCarbonMarketarereferredtoasVoluntaryEmissionReductions(VER’s)andareaflexibleinvestmentforbuyersbecause:
• Theycanbeusedasoffsets;
• TheycanbeusedforCSR/Brandenhancement;
• Theycanbetraded;
• Theycanbeusedasethical investmenttools.
REDDcreditswithintheVoluntaryMarkethaveseenaphenomenalgrowthpatternsince2006,whentheywererepresentingjust2%oftheVoluntaryMarket.Withtheyear-on-yearmarketshareofREDDrapidlyescalatingto71%in2010,REDDistransactingatgreatervolumeofcreditswithalargerprospectivevaluethananycompliancemarkettodateii.TheincreasinginterestinREDD,coupledwiththeemergingstandardsthatareprovidingvalidityandvaluetotheprojects,positionsCGVandtheirREDDprojectsattheforefrontofrisingmarketdemand.
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Figure 1: Predicted Growth of the Voluntary Carbon Market
REDDasanInvestment
ReducedEmissionsfromDeforestationandForestDegradation(REDD)projectsareestablishedonexistingareasofforestwhichhaveademonstrableriskofdeforestationordegradationwhich,iftheprojectwasnotimplemented,wouldreducetheconservedlevelsofcarbonstoredwithinthem;theemissionreductionsVER’saregeneratedfromtheavoidedemissions.
REDDprojectsprovideamultitudeofbenefitstoawiderangeofstakeholders:
• ClimateGlobalemissionsfromdeforestationanddegradationaccountfor17-20%annually,resultinginthisbeingthelargestsinglecontributortoglobalcarbonemissions,asforests(especiallytropicalrainforests)playakeyroleintheglobalcarboncycle,becausetheyarebothsourcesandabsorbersofcarbon.ProtectingtheseareasofrainforestthroughREDDprojectsgivesatwo-foldbenefit;thetreesremainintact,andthereforecontinuetoholdthecarbonalreadysequesteredplustheycontinuetoabsorbfurthercarbonfromtheatmosphere.
• CommunityThefocusofCGVREDDprojectsisnotexclusivelytoconservetherainforest;theparallelfocusistoconserve,improveandenhancethelivelihoodofthecommunitiesinandaroundtheprojectareas.Byenlistinglocalpeoplesparticipationintheprojects,offeringthemtheopportunitytobecomeactivelyinvolvedintheprotectionandsustainabilityoftheirhabitatandrewardingthemmonetarilyforthis,givesthematangibleandrewardingoutcomefromcontributingtoCGV’sprojects.
• InvestorsForest-basedcarbonprojectssuppliedthelargesttotalvolumetransactedontheVoluntaryMarketin2010iii,withREDDprojectsinparticularascendingtotheforefrontoftheVoluntaryMarket.Accountingfor33%ofallVER’stransactedontheVoluntaryOTCMarketin2010withdemandcontinuingtorise,REDDisviewedaspotentiallythemostsustainablevoluntarycreditonthemarketwithcurrentpricingtrendsreflectingthis.In2010theaveragepriceforaREDDcreditwas$5pertCO2e,andthishasalreadyrisenin2011tobetween$8-10,asavoideddeforestationcreditscontinuetoattractapremium.
AllCGVprojectscarrysuchapremiumduetotheirunequivocalcommitmenttoincludingco-benefitssuchassocio-economicimprovement,andbiodiversityconservationwithintheirprojectdesign.
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REDD 33.0%
Methane 21.1%
Renewables 21.0%
A/R 5.8%
IFM 5.8%
Other Forestry and land uses 5.5%
Energy e�ciency and fuel switching 3.0%
Other 4.8%
Figure 2: Forest Carbon Share of Voluntary OTC Market 2010, based on total volume of 59.7MtCO2e
ECOasourStandard
TheEcosystemCertificationOrganisation(ECO)NaturalForestStandard(NFS)isdevelopedwithbothForestandBiodiversityConservationinmind,ensuringthatallprojectsparticipatingunderthisstandardhaveintegratedbenefitstotheforestsandthewiderecosystemservices.
TheStandardprovidesanefficientandeffectivemechanismforthecertificationofcarbonandecosystembenefits,bytakingthefundamentalconceptsofREDDprojectsanddevelopingthemintoanall-encompassingStandardthatnotonlyrewardstheconservationofNaturalForestsbutalsocertifiesbiodiversityconservationandcommunitybenefits.
ApanelofTechnicalExpertswillapprovemethodologiesthatwillensurethecarbonprojectsproposedforvalidationundertheNFSstandardwillexplicitlybringbenefitstotheecosystemservicesasawhole,whilstsimultaneouslyensuringproactiveforestconservation.
TheECONFSStandardisbeingdevelopedinconjunctionwithEcometrica,aleadingCarbonAccounting,PolicySpecialistsCompany,whohaveextensiveexperienceandexpertiseinthedevelopmentandapplicationofuser-friendly,efficientCarbonStandards.
UsingECO’sstringentmethodologiesplusthecompulsorythirdpartyvalidationandverificationprocess,CGVareabletoensuretheintegrity,qualityandcredibilityofthecarboncreditsthataregeneratedfromtheirprojects.
ECOSYSTEM CERTIFIC
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InvestinginVER’swithCelestialGreenVentures
Forestconservationbenefitsaretwo-fold.Theyincludethebenefitsthatarecapturedinacarboncredit,buttheyalsohavethebenefitswhichfalloutsideofthis,whicharetheecosystembenefits.
ThereisaclearneedwithintheVoluntaryCarbonMarketforprojectstodelivertheseadditionalbenefitstobiodiversityandcommunities,enablingprojectdeveloperstosatisfytheever-increasingdiscernmentofbuyersandinvestors.
Bydesigningtheirprojectswiththisinmind,CGVareattheleadingedgeofincludingbiodiversity,conservationandsocio-economicbenefitsasanintegralpartoftheirprojectdesign.NotonlydoCGV’sprojectsallactivelyconservetheareasofpristinerainforestundertheirjurisdiction,buttheyalsoapplytheiruniqueandethicalcommitmentstoeachandeveryproject:
• Ensuringallaspectsofeveryprojectarecarriedoutinaresponsibleandsustainablemanner;
• Enhancingthelivingconditionsofthepeopleinandadjacenttotheprojectareas;
• Enhancinghealthcarefacilitiesincludingvaccinationsandlocalmedicalclinicprovisions;
• Availabilityofsafewatersuppliesandsewagedisposal;
• Increasingeducationalopportunities;
• Providingprovisionofemployment;
• Recognitionofthewisdomandlocalknowledgeofindigenouspeopleandoftheirrighttoparticipatedemocraticallyindecisionsaffectingtheirfuture;
• Provisionoftopqualitymeasurestoprotectandsecurefuturebiodiversity;
• Provisionofenergyneedsoflocalcommunitiesusingsustainabletechnologiestoavoidthecuttingdownoftreesforfirewood;
• Protectionofintegratedecosystemswhichisvitaltoprotectingbiodiversity.
ByofferingpremiumqualityREDDVER’sgeneratedfromethical,transparentprojects,CelestialGreenVenturesgivesinvestorstheopportunityto:
• Participateinthelong-termvisionthatCGVprojectsoffer;
• InvestwithintheexpandingVoluntaryCarbonMarket;and
• ActivelycontributetothewelfareoftheGlobalEnvironment.
Withtheabilitytoexpandtheircontractportfoliointoaglobalscaleenterprise,togetherwiththeexpertiseofindustry-knowledgeablestaffandingrainedethicalintegrity,aninvestmentwithCGVismorethanjustinvestinginVERcredits;itisaboutmakingalong-termethicalinvestmentwhichbenefitsboththeinvestorandtheenvironmentalike.
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CONTACTUS
CelestialGreenVenturesPLC93StStephensGreenDublin2RepublicofIreland
Tel: +353(0)14283404Email:[email protected] [email protected]
Web: www.celestialgreenventures.com
i Report:StateoftheVoluntaryCarbonMarket2011ii Report:StateoftheForestCarbonMarkets2011iii Report:StateoftheForestCarbonMarkets2011
Figure1Source:EcosystemMarketplaceandBloombergNewEnergyFinanceFigure2Source:StateoftheForestCarbonMarkets2011
© CGVMunicipality of Autazes, Amazonia, Brazil
Celestial Green Ventures PLC, 93 St Stephens Green,
Dublin 2, Republic of Ireland Tel: +353 (0) 1 428 3404
Email: [email protected]
Printed using vegetable based inks on paper from well-managed forests.
www.celestialgreenventures.comDesigned and Printed by Manor Creative, Eastbourne
