The True Solution for Managing Climate Change
Opportunities for Cooperatives Associated
With Greenhouse Gas Emissions
©2003 AgCert International LLC, AgCert™
AgCert International, plc
Leader in the production and sale of agriculturally derived
greenhouse gas (GHG) emission reduction offsets
 Corporate Headquarters in Dublin, Ireland
 USA Headquarters in Melbourne, FL
 Founded to generate emission reductions from livestock farms
to reduce the adverse impacts of GHG emissions related to
global warming and climate change and at the same time
provide environmental co-benefits
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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What Does AgCert Do?
An Aggregator / Developer who creates and markets a commercial
product, GHG Emission Reductions (ERs):
Aggregation - Links farms (production activities) with potential buyers
in;
- Diverse geographies
- Diverse farming operations
Developer – develops projects using methodologies based upon
Intergovernmental Panel on Climate Change (IPCC) science.
Uses a standardized process to produce uniform offsets on large scale
 Proprietary information management system
 Aggregates (pools) and sells offsets to emitters
Provides livestock farmers with turnkey manure management solutions to:
 Manage effluent, capture methane, destroy (combust) methane
(methane is 21 times more potent a greenhouse gas than carbon dioxide)
 Qualify / quantify GHG emissions and create offsets
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
AgCert Methodology AM0016 has been approved by the UNFCCC
 Covers swine, dairy (beef), poultry, sheep, buffalo, goats
 Globally applicable (all climates)
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AgCert Global Operations
Canada
USA
Ireland
China
Vietnam
South Korea
Office: Edmonton
Office: Melbourne, FL
Corporate Office: Dublin
Aggregating
Aggregating
Future Aggregation
Amazon office location
Project Activities
Next aggregation priorities
Mexico
Chile
Office: Mexico City Office: Santiago
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
Argentina
Brazil
Eastern Europe
Malaysia
Philippines
Office: São
Paulo
Aggregating
(JI)
Aggregating
Future
Aggregation
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What is Global Warming?
The Greenhouse Effect is a natural process that maintains
the earth’s temperature at levels hospitable for life
 Energy from the sun warms the earth
 The earth absorbs heat from the sun and radiates it back into
space in the form of infrared radiation
 About 1% of the earth’s atmosphere is composed of
greenhouse gases (GHG), primarily water vapor, carbon
dioxide, ozone, methane, and nitrous oxide.
 Together, these gases reflect enough heat back to earth to
maintain the average temperature of the atmosphere at around
60° F.
 Without the greenhouse effect,
the earth would be a cold,
uninhabitable place.
When solar gain and
re-radiation are balanced,
there is no net warming…
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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What is Global Warming?
At issue is humankind’s role in enhancing the greenhouse
effect, contributing to overall global warming.
 Deforestation – Trees remove CO2 from the air.
Destruction of trees reduces the number of trees available to
remove CO2, and releases stored CO2.
 Agriculture – Methane is produced when bacteria
decomposes organic matter. About ¼ of global methane
emissions from human activities comes from livestock and
the decomposition of animal manure.
 Fossil Fuels – The supply and use of fossil fuels (burning of
coal, natural gas and oil) accounts for about ¾ of
humankind’s CO2 emissions.
 Industrial – A wide range of processes create “man made”
GHG – such as SF6, HFCs and PFCs.
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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What are Greenhouse Gases?
These gases, plus water vapor, trap Infra Red (heat) energy that is
released from the Earth’s surface. GHG stays in the atmosphere for
decades or centuries
Greenhouse Gas
Man-made Causes
Natural Causes
Combustion of coal, natural gas
for electricity generation,
petroleum products including
fuel.
Volcanoes,
trees, forest fire,
vegetation,
oceans
Methane (CH4)
GWP  21
Production, transportation of
coal and natural gas;
decomposition of waste in
landfills
Decomposition,
animal waste,
wetlands, natural
gas
Nitrous Oxide (N20)
GWP  310
Fertilizers; Industrialization
combustion of fossil fuels.
Moist soils
Hydrofluorocarbons
(HFCs)
GWP  1,000s
Aerosol additives
Carbon Dioxide (CO2)
GWP = 1
Perfluorocarbons
(PFCs)
GWP  1,000s
Sulfur Hexaflouride
(SF6)
GWP  16,900
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
Aluminum Production
Semiconductor manufacturing
processes.
GHG is measured in metric tons of CO2e
(where e = equivalents)… based upon a consideration of GWPs
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Sources of Total GHG Emissions
3%
Waste
Disposal
Industrial
14%
39%
10%
Electricity
Generation
8%
Residential &
Commercial
25%
Transportation
Agriculture
CANADA
4%
20%
34%
9%
7%
27%
U.S.
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
Globally: Agriculture accounts for 20% of GHG emissions
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The World Influence
The US will ultimately be forced to participate in GHG
emission reduction programs
 Compliance requirements
 Proxy actions
 Directors and officers insurance (Carbon Disclosure
Project & Swiss RE)
 Trade barriers
 Litigation
 EU ETS / Kyoto
 US Multi-nationals already feeling the “compliance pinch”
abroad
 US voluntary standards do not satisfy international standards
for protocol development, reporting, auditing, compliance
Emission reduction market value – quality and reality
differentiates
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
 EUA: ~ €16-25 ($20.00-30.00)
 CER: ~ € 5-22 ($6.25-24.00)
 US ER: ~ $2.10 – $4.50
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The Role of Agriculture
Agriculture produces 20% of the world’s greenhouse gases
 Therefore has the potential to be the single largest source of
affordable offsets
 Agricultural sector continues to grow – offering increasing
opportunity to create offsets
 Project implementation cycle very short
(weeks/months – not years)
 Powerful positive environmental co-benefits
 Ideal opportunity to foster INDUSTRY ↔ AGRICULTURE partnerships
Agricultural sources in the US and Canada run a HUGE risk of becoming
point sources vs. emission reduction suppliers due to:
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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Lack of defined policy
Role of sequestration hasn’t been defined – but potential is HUGE
Inappropriate baseline and verification definitions/standards
Lack of country-wide GHG mitigation initiative(s)
“Global realities” - No recognition of existing US efforts via Kyoto, EU ETS
Lack of approved agricultural methodologies or verification protocols
Perception of voluntary vs. mandatory reductions
Denial
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Agricultural “Baselines” Will Determine Agriculture’s
Capacity to Contribute…
Digester
Composting
Covered Lagoons /
Covered Storage
Earthen Basin
Baseline
Lagoon
In this manure management example, open air lagoons are the “baseline”.
Any practice or technology enhancement yielding improved GHG
performance (compared to the baseline) qualifies for ER consideration…
Similar baselines are being derived for other agricultural practices, such as
tillage, land application of manure, etc.
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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Creating Agricultural ERs
Incremental Technology Progression
Manure Management (Methane and Nitrous Oxide Avoidance)
Open Lagoon
(baseline)
Covers
Anaerobic Digester
Tillage
Invasive
(baseline)
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
Minimum Till
No Till
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Practice Change Create Reductions?
•Emission Reductions (ERs) are created by a
difference in the amount of emissions from a
defined baseline.
•ERs are created by improved manure handling
practices such as covering a lagoon/earthen basin
with a biocover or non-permeable cover, the use
of a Slurrystore, deep pit confinement buildings,
or anaerobic digesters.
Less Methane
Less Nitrous Oxide
Less CO2e
Emission Reduction
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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Farm ERs: Phased Approach
Methane Avoidance
CRADA Phase 2GRP
CRADA Phase 1
CRP
$
$
Grasslands Mgt.
Bio Digester
$
CRADA Phase 2
Pasture
Forest
CRP
$
Woods
$
Sequestration
CRADA Phase 1
Afforestation,
Silvopasture &
AgroForestry
Hill
Wind Breaks
CRADA Phase 2
$
$
$ Grass Filterstrips &
Corn
Corn
Riparian Buffers
Hill
CRADA Phase 2
Pasture
CRADA Phase 2
$
Soy
Beans
Soybeans
$
Wetlands
Wetlands
Wetlands
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
Pasture
Corn
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States
States with GHG Reporting
& Registries
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
Updated July 2005 by…
States with a Carbon Cap or Offset
Requirement for Power Plants
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Climate Action Plans
Updated July 2005 by…
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©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
Climate Action Plans detail steps that the states can take to reduce their
contribution to climate change.
The process of developing a climate action plan can identify cost-effective
opportunities to reduce GHG emissions that are relevant to the state.

The individual characteristics of each state’s economy, resource base, and
political structure provide different opportunities for dealing with climate change.

Without targets for emissions reductions, incentives for cleaner technologies, or
other clear policies, climate action plans will not achieve real reductions in GHG
emissions.
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States
RGGI (Regional GHG Initiative)
 Multi-state cap-and-trade program
 CT, DE, ME, NH, NJ, NY, RI, VT
 DC, MD, PA observing
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Phase 1 is power sector only
1990 levels by 2010
10% below 1990 by 2020
75-85% below current levels in the long run
Rules are being finalized 8 states now
California Has Signed into law

Reduce GHD Emissions to 1990 levels by the
year 2020
California & RGGI Announced they will link the
two systems together
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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States
Climate Trust
 501(c) non-profit start up formed in 1997 to meet
needs of Oregon’s new CO2 standard
 New power plants must offset approximately 17% of
CO2 emissions
 Develop CO2 offset project themselves
 Buy offsets created by other project developers
 Pay Carbon Trust to purchase offsets on their behalf
 Offsets can only be CO2 (no methane or other GHG
equivalent)
 Carbon sequestration may qualify
©2003 AgCert International
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©2003
AgCert International LLC
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Voluntary
Chicago Climate Exchange (CCX)
 Multi-sector cap & trade program supplemented with
project-based offsets
 Price discovery & dissemination of market information
 2003 – 2006: Reduce emissions to 1%, 2%, 3% and 4%
below 1998 – 2001 baseline
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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Voluntary
1605(b)
 Voluntary GHG emission inventory and reductions
reporting
 Established by section 1605(b) of the Energy Policy Act of
1992
 Over 200 regular reporters
 Goal is to reduce GHG emissions intensity 18% by 2012
 3/24/05: Interim Final General & Draft Technical
Guidelines published in the Federal Register for comment
 9/20/05: Guidelines become effective (unless extended)
 Summer 2006: First reports under guidelines
 Reduction projects must have a project start date of 2002
or later
 3rd party verification is encouraged but not required
 Relationship to WRI, Climate Leaders and Climate Vision
©2003 AgCert International
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©2003
AgCert International LLC
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What are Buyers Requiring?
Emission Reductions that meet all global
“credibility” tests…
Emission Reductions that enable emitters to meet
their compliance requirements…
 Government
Approval
 3rd Party Verified
 Science based
 Audited
 Clear Title
 Data Transparency
 Permanence
 Additionality
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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Long term contracts/relationships
Sustainable Economics
Guaranteed Delivery
Kyoto Compliance
Kyoto Approved Project
Development Design
 Environmental Co-Benefits
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The AgCert Solution
AgCert provides:
 Government protocols – developed with USDA and other
government entities
 Globally applicable UNFCCC-approved GHG
emission reduction methodology (AM0016)
 Science partnerships:
 USDA CRADA #58-3K95-2-949
 BNL CRADA #BNL-C-04-08
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Geo-referenced, time/date stamped data; transparent access
Rigorous 3rd party verification
ISO Certification
Aggregated supply: simplicity and dependability for buyers
and sellers
 AgCert manages verification, registration and liability issues
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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Where Are the $s For Farmers & The
Cooperatives?
Partnerships:
Biogas Recovery systems
 Coop could recruit farmers whose
livestock operations are big enough to
support digesters on individual farms
 Organizes possible centralized
systems
 Possible marketing opportunities for
solids
 Coop collects data
 Coop performs site assessments
©2003 AgCert International
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©2003
AgCert International LLC
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Soil Sequestration
Coop already has large percentage of data
 Fertility records
 Cropping history
 Need to add tillage history
 Conventional
 Minimum
 No Till
 Range-Land Management
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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Cargill to Assist Venture to Convert Manure to
Methane
By a WALL STREET JOURNAL Staff Reporter
October 24, 2006; Page B2
©2003 AgCert International
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©2003
AgCert International LLC
Cargill Inc., the farm-commodity processing giant, is expected to
announce today that it is branching into the business of turning
livestock manure into methane gas.
The move by the closely held Minneapolis company would be a big boost
for the fledging renewable natural-gas industry and could help fuel
trading in greenhouse-gas credits on carbon-credit exchanges, such
as the Chicago Climate Exchange.
Cargill has agreed to recruit farmers whose livestock operations are big
enough to generate a reliable supply of manure for anaerobic
digesters built and operated by Environmental Power Corp.,
Portsmouth, N.H. A digester, which can cost $1 million to build, uses
microorganisms to convert manure from about 1,000 cows into
methane, which is then sold to natural-gas utilities.
While Cargill isn't investing in the operation, Cargill would earn warrants
for Environmental Power stock if it generates a certain amount of
business. Cargill has close ties to thousands of livestock producers; it
sells them feed as well as buys their cattle and hogs for Cargill
meatpacking operations.
Rich Kessel, Environmental Power chief executive officer, said the U.S.
livestock industry is capable of supplying several hundred manure-tomethane complexes. While farmers aren't paid for the manure they
deliver to such operations, they typically share in profits if revenue
rises to a certain level.
Environmental Power operates three digesters in Wisconsin, all of which
are supplied by dairy cows, and is building a complex in Texas.
URL for this article:
http://online.wsj.com/article/SB116166048686101768.html
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How the ER Aggregation Process Works
(and how to capture the dollars in carbon credits)
Adopt environmental management practice
Reduce GHGs (and other pollutants)
AgCert verifies emission reduction (via data, site visit, technology)
Creation of agricultural emission reduction
3rd party verification/validation
Audit (if applicable)
Sell within emissions trading system
Farm revenue
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LLC, AgCert™
©2003
AgCert International LLC
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THANK YOU FOR YOUR
TIME!
Contact Info:
Duane Toenges
dtoenges@agcert.com
+1 (319) 373-5342
©2003 AgCert International
LLC, AgCert™
©2003
AgCert International LLC
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