Crossover Assets™
Investing in Environmental Assets and Biodiversity

Carbon Markets

The global carbon markets were worth an estimated $144 billion in 2010 and will undoubtedly continue to grow as additional countries develop market mechanisms to reduce carbon emission levels. In the U.S., the state of California has pioneered the development of a mandatory cap-and-trade program in an effort to meet the mandate established in the Global Warming Solutions Act of 2006. The Act requires the California Air Resources Board (“ARB”) to develop a market mechanism to reduce the state’s greenhouse gas emissions to 1990 levels by 2020, representing a 25% reduction statewide. The program will take effect beginning in 2012 and will apply first to utilities and large industrial plants, and in 2015 will then be applied to other businesses throughout California. The credits will be traded through an auction format and will be provided from either other emitters with excess allowances or from emission-reduction projects. In addition to state led efforts to reduce carbon emissions, regional developments including the northeast states’ Regional Greenhouse Gas Initiative and the western states’ proposed Western Climate Initiative are continuing to gain momentum through the support of local laws and regulations. Given Timbervest’s presence in timberland and Crossover Assets™ investments and as the carbon markets in the U.S. continue to develop, Timbervest believes it will be well positioned to take advantage of any investment opportunities related to this emerging market.

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