Emission Offsets Information Seminar - Failsafe Canadafailsafecanada.com/docs/CanAg...

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Present Emission Offsets Information Seminar

Transcript of Emission Offsets Information Seminar - Failsafe Canadafailsafecanada.com/docs/CanAg...

Present

Emission Offsets Information Seminar

CanAg - CONFIDENTIAL - 2009

Why?World Bank – Estimated Global Carbon Market

2005 = $11 Billion USD2006 = $30 Billion USD2007 = $64 Billion USD

Alberta Emissions Reduction RegulationCurrently set at $15.00 per Tonne CO2eCap will increase over time

June 1, 2009 – European Climate Exchange (ECX)1 Tonne CO2e ≥ $23.42 CDN

CanAg - CONFIDENTIAL - 2009

ECX

ECX MONTHLY REPORT - April 2009 Over half a billion tonnes traded on ECX during April, the 2nd highest month on record, and up 169% year on year.

CanAg - CONFIDENTIAL - 2009

Emissions - CanadaProvince Number of

FacilitiesCO2 (tonnes

CO2e)Total (tonnes

CO2e)12%

Reduction

Alberta 101 104,012,651 109,323,316 13,118,798British Columbia 37 11,890,022 13,901,591 1,668,191Manitoba 7 2,299,847 2,941,071 352,929New Brunswick 12 12,518,016 12,610,793 1,513,295Newfoundland and 7 4,935,472 5,216,055 625,927Northwest Territories 2 337,569 358,973 43,077Nova Scotia 9 11,400,077 12,014,651 1,441,758Nunavut 0 0 0 0Ontario 85 72,231,399 78,399,997 9,408,000Prince Edward Island 1 104,300 104,331 12,520Quebec 53 19,070,942 22,101,182 2,652,142Saskatchewan 22 21,938,338 22,870,183 2,744,422Yukon 0 0 0 0Grand Total 336 260,738,633 279,842,143 33,581,057Source: Environment Canada - GHG Division, 2005

CanAg - CONFIDENTIAL - 2009

CURRENT PROTOCOLS1.Acid Gas Injection2.Aerobic Composting3.Afforestation4.Anaerobic Wastewater Treatment5.Beef Feeding (Edible Oils)6.Beef Feeding (Reducing Days-On-Feed)7.Beef Lifecycle8.Biofuel9.Biogas10.Biomass11.Energy Efficiency12.Enhanced Oil Recovery

13. Landfill Bioreactor14. Landfill Gas15. Modal Freight Shift16. Non-Incineration of Thermal Waste17. Pork18. Road Rehabilitiation19. Run-of-the-River Electricty System20. Solar Electricity Systems21. Tillage22. Waste Heat Recovery23. Wind-Powered Electricity Systems

HOW?

Emission Emission Offsets Limited Offsets Limited

PartnershipPartnership

CanAg - CONFIDENTIAL - 2009

An income trust is an investment trust that holds income-producing assets. The income is passed on to the investors, called "unit-holders", through monthly or quarterly distributions.

A Public income trust’s shares or "trust units" are traded on securities exchanges just like stocks.

A Private income trust unit is NOT traded on securities exchanges and is NOT treated like a corporation for Tax purposes.

DefinitionPrivate Income Trust

CanAg - CONFIDENTIAL - 2009

CanAg Goals

FORMED in 2009by

Focused on Agriculture based Investment Opportunities

Designed to attract Agriculture Producer and Related Corporate ParticipationOpen to All Investors

Provides Tax Advantages to InvestorsCarbon fund is 1st of many projects

CanAg - CONFIDENTIAL - 2009

CanAg - CONFIDENTIAL - 2009

Projects Under ConsiderationEXISTING PUBLIC

Rail & LogisticsCrop InputsElevation and Distribution

AG REAL ESTATEFarm LandMarginal LandAg to Commercial Potential

BIO ENERGYGlobal Carbon FundBiofuel Marketing & Distribution

GREENFIELD PROJECTSCanola CrusherRenewable Diesel RefineryWind EnergyAlgae Production

EXISTING PRIVATENorth West EthanolHighmark RenewablesFlour MillMalt ProductionElevation and Distribution

CanAg - CONFIDENTIAL - 2009

CanAg Investment TimelineImmediate Opportunities

Emission Offsets Limited Partnership

Mid-Term Opportunities – 12 to 24 monthsHighmark Renewables

North West BioEnergy

Long-Term Opportunities - More than 24 monthsOther Potential Projects

CanAg - CONFIDENTIAL - 2009

Investment Options

Investment $

Investment $Emission Emission

Offsets LPOffsets LP

CanAg - CONFIDENTIAL - 2009

Trust - BenefitsInvestment in the Trust can be made from existing RRSP, RRIF, RESP, TFSA and DPSP accounts

Distributions can be paid directly to these accounts without tax deductions (until withdrawn from the account)

Trust Units will have mandatory redemption rights for unit holders which will provide an exit strategy –the Limited Partnership may not have similar liquidity entitlements.

Investment Diversification – Mid and Long Term diversity in Agricultural projects

CanAg - CONFIDENTIAL - 2009

SummaryCarbon Trading is a significant emerging market opportunity (Growing ~ 100%/Year)

CanAg Trust and Failsafe Canada are forming Emission Offsets LP

Interested Investors can participate either through CanAg Trust or directly into EOLP

The Trust may provide investment advantages to participants:

Tax SavingsExit StrategyPortfolio Diversification