Conservation Revenue Land Lease

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Conservation Revenue Land Lease

Silver Beech Foundation, B Corp.

According to the Intergovernmental Panel on Climate Change (IPCC), the world has until 2030 to cut human-caused carbon dioxide (CO2) emissions in half (and cut other greenhouse gas emissions considerably) to maintain a 50% chance of avoiding the worst effects of climate change.

By 2050, CO2 emissions will need to reach “net zero” – where emissions are in balance with removals to sustain this chance.

The climate crisis continues to escalate amid a prolonged pandemic, increasing economic instability and geopolitical tensions.

Commitments made at the 2022 United Nations Climate Change Conference (COP26) keep hope alive that avoiding the worst effects of climate change is within our reach, but the peril remains stark.

The latest work from the Intergovernmental Panel on Climate Change makes plain that we must arrest rising emissions now to ward off climate danger. Meeting this challenge in uncertain times calls for ambitious, just, and comprehensive action by policymakers.

In this regard, carbon pricing, within an integrated policy mix, is one of the most powerful tools available for guiding economies toward low-emission paths.

To maximize the benefits, carbon price signals must be sustained, strengthened, and extended to a greater portion of global emissions, three quarters of which are currently untouched by carbon pricing instruments.

The world is in an existential climate crisis.

New York City June 2023

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Silver Beech Foundation, our goals to accelerate a net-zero future. Silver Beech will purchase or lease lands for long term conservation and carbon sequestration, with a commitment to sustainability and accountability we aim to to scale highintegrity carbon credit projects and advance global climate action in alignment with United Nations Sustainable Development Goals.

Silver Beech Foundation

Coastal wetlands & restoration and conservation

Forest management & reforestataion

Carbon developments & trading

Perpetual land conservation

99 year Conservation Revenue Leases & carbon sequestration programs

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99 year Conservation revenue lease terms

The term of our Conservation Land Lease (99) years.

The Silver Beech Lease is recorded right in your county courthouse.

We pay a fixed amount annually for the term of the 99 years.

The land is enrolled in a 99 year conservation easement.

Landowners keep ownership of their land and enjoy a multi-generational income stream

Continue to enjoy your property.

Hunting, fishing and practice sustainable agriculture.

Ideal for multi-generation estate planning and wealth transfer

In most cases, Silver Beech will not lease any tracts smaller than 100 acres for the Conservation Lease Pool.

In 2019, landowners averaged $38 dollars per acre in income.

Example: 10,000 ac. = $380,000 / yr 99 yrs = $37M in total cash flow over the life of the Lease term.

The Lease structure facilitates sale transactional liquidity.

Land Conservation

Private lands conservation is an innovative tactic that leverages the increasing interest of the private sector to take part in conservation. Silver Beech works with landowners, communities, cooperatives and businesses to establish local groups that can protect land. Some of the main tools used to achieve these goals include land trusts, conservation easements, private reserves and incentives.

Conservation easements are one of the most powerful, effective tools available for the permanent conservation of private lands in the United States.

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Grasslands

Grasslands are one of the largest carbon sinks on the planet, capable of pulling enormous quantities of CO2 from the atmosphere and storing it in the soil. Carbon farming is the process of farming and ranching to maximize the land’s ability to lock up CO2 and other greenhouse gases, making the land more resilient to the effects of a changing climate. Carbon farming is successful when carbon gains resulting from enhanced land management or conservation practices exceed carbon losses. This new market opportunity pays farmers and ranchers to preserve grasslands and lock carbon into the soil. Grassland carbon credits reward landowners for retaining soil carbon and avoiding the emissions associated with converting grassland into croplands Grassland projects also provide ecosystem

American ranchers occupy hundreds of millions of acres of grazing lands that can draw carbon down and store it in the soil for thousands of years We either purchase or lease the lands. Our process involves rigorous soil sampling and measurement to assess carbon storage and employ the best land management practices for carbon storage, verify and certify the carbon credits according to the Regenerative Standard.

Coastal Marsh Lands

On average, one acre of salt marsh can reduce approximately 1,940 pounds of carbon per year. This is equivalent to removing one car from the road for a year.

Salt marshes are able to sequester carbon dioxide from the atmosphere through a process called photosynthesis. The plants in a salt marsh use carbon dioxide and sunlight to create food, and the excess carbon dioxide is stored in the plant tissues and in the soil. Salt marshes are also able to store carbon in their sediments, which are made up of dead plant and animal matter. The amount of carbon that a salt marsh can sequester can vary depending on a number of factors, including the type of plants in the marsh, the amount of sunlight and rainfall, and the level of disturbance. However, even small salt marshes can make a significant contribution to reducing greenhouse gas emissions. Here are some of the benefits of salt marshes: They provide a habitat for a variety of wildlife, including fish, birds, and shellfish. They help to protect shorelines from erosion. They filter pollutants from water. They provide a place for recreation and education. They help to mitigate climate change by sequestering carbon dioxide from the atmosphere. Salt marshes are an important part of our coastal ecosystems, and they play a vital role in protecting our environment. We can all do our part to protect salt marshes by reducing our impact on the environment and by supporting efforts to restore and conserve these valuable habitats.

Wetlands do more than provide habitat for plants and animals in the watershed. When rivers overflow, wetlands help to absorb and slow floodwaters. This ability to control floods can alleviate property damage and loss and can even save lives. Wetlands also absorb excess nutrients, sediment, and other pollutants before they reach rivers, lakes, and other waterbodies. They are great spots for fishing, canoeing, hiking, and bird-watching, and they make wonderful outdoor classrooms for people of all ages.

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Global carbon prices are on the rise

Emergence of big carbon markets

The value of carbon markets is reaching record highs as global climate actions gained unprecedented momentum. Carbon permits in the EU’s ETS reached a record high of 89 euro per metric ton in December, tripling the yearago levels and significantly outperforming equity indices. Reviving post- COVID economic activities, anticipation of the EU’s tightening climate policies, and more recently elevated natural gas prices have all fueled higher demand for EU carbon permits.

Similar dynamics are playing out in other regional schemes where prices for carbon permits in the California cap-and-trade market and the north- east’s Regional Greenhouse Gas Initiative (RGGI) were up 70% and 75% in 2021, respectively.

Such strong price actions across the world’s three most liquid carbon markets put a spotlight on carbon as a barometer for global climate policy actions and as an emerging asset class.

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How large can carbon markets become?

More than 60 carbon markets and taxes have been implemented around the world, covering 11.6 GtCO or 22% of global greenhouse gas emissions. The global compliance carbon markets, in which carbon allowances are traded and regulated by mandatory national/sub-national regimes, account for ~75% of those total emissions covered and have a carbon market-weighted average price of ~$ 28/ton. Still, even at current prices, we estimate the market value of CCMs totals over $270 billion, with the EU and UK ETS –two schemes with the highest carbon prices – making up 63% of that value while accounting for less than 20% of the covered emissions. China, given its large emission footprint, accounts for ~16% of the total CCM value. (See Figure 11.)

Source: he BLOOMBERG PROFESSIONAL™ service Cred t Su sse Source: CARB, RGG , Shangha Env ronmental and Energy Exchange, Korea Exchange Cred t Su sse
80% 60% 40% 20% 0% -20% -40% 1Q21 EUR 100 90 80 70 60 50 40 30 20 10 0 Jan-19 Ca ifornia 70% Ch na 6% May-19 Sep-19 Korea 53% RGGI, 75% 2Q21 Jan-20 May-20 Sep-20 Jan-21 3Q21 May-21 Sep-21 Jan-22 4Q21 5% 25% 20% 15% 10% Other China na ional ETS 0% 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Figure 7: EU ETS Carbon Permit Performance
Source: World Bank Credit Suisse
Figure 8: Carbon Prices in Key Compliance Markets (ex-Europe) Figure 9: Share of Global Emissions Covered by Carbon Schemes

Cyrus Blue Foundation

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