ICF Tender No. 07-02 for Carbon Offsets
March 21, 2007
Prepared by:
ICF International
394 Pacific Avenue, 2nd Floor
San Francisco, CA 94111
USA
07-028
Table of Contents
1. Introduction ......................................................................................................................... 1
1.1. Total Volume of Offsets Sought .................................................................................... 1
1.2. Size of Projects............................................................................................................. 1
1.3. Type of Greenhouse Gases .......................................................................................... 1
1.4. Timing of Project Implementation ................................................................................. 1
1.5. Length of Project Contract ............................................................................................ 1
1.6. Anticipated Schedule .................................................................................................... 1
1.7. Submission Format ....................................................................................................... 1
1.8. Notice of Intent to Bid ................................................................................................... 2
1.9. Bidder’s Questions and Answers .................................................................................. 2
1.10. Submission Deadline .................................................................................................... 2
2. Portfolio Composition ......................................................................................................... 2
3. Exclusion Criteria ................................................................................................................ 2
4. Evaluation Criteria............................................................................................................... 3
5. Format of Response............................................................................................................ 4
5.1. General ........................................................................................................................ 4
5.2. Additionality .................................................................................................................. 6
5.3. Co-Benefits................................................................................................................... 7
5.4. Project Risks ................................................................................................................ 8
5.5. Monitoring and Verification ........................................................................................... 9
5.6. Ownership .................................................................................................................. 10
5.7. Firm Description ......................................................................................................... 11
ICF International
07-028
i
March 21, 2007
1.
Introduction
A very large, very visible company (“Company”) is seeking to purchase carbon offsets as a part
of its goal to become “carbon neutral”. The Company has hired ICF International to serve as its
consultant in the selection and procurement of carbon offsets. The Company and ICF are
releasing this Request for Proposal (RFP) to identify and purchase GHG project offsets. This
initial request for offsets is targeting the Company’s emissions for the year 2007, but the
Company plans to make a multi-year commitment to carbon neutrality, and thus will welcome
proposals with multiple years of offsets provided.
The information in this tender is confidential and should not be reproduced, stored in retrieval systems or
transmitted in any form, for any purpose, without the prior written permission of ICF Resources, LLC.
1.1. Total Volume of Offsets Sought
The Company is seeking to purchase up to 1,000,000 metric tons of carbon dioxide equivalent (CO2e).
Total offset purchase is dependent upon responses to this RFP. Final decisions on the number of
accepted projects and total volume of offsets bought are at the sole discretion of the Company.
1.2. Size of Projects
There is no minimum tonnage requirement for projects proposed through this RFP. While the
Company is seeking to purchase substantial blocks of offsets (i.e., over 10,000 tons), it is also
seeking creative, smaller project proposals.
1.3. Type of Greenhouse Gases
Offsets will be accepted based on emissions of CO2, CH4 or N2O.
1.4. Timing of Project Implementation
Strong preference will be shown for projects that are about to go into operation or have recently
gone into operation. Projects that have been operating for some time, while not excluded from
this tender, will receive extra scrutiny due to concerns over additionality.
1.5. Length of Project Contract
This tender is focused on offsets available for meeting a single year of the Company’s carbon
footprint. However, as the Company intends to continue its carbon neutral commitment for years
to come, it will also consider offers including offsets for subsequent years. The Company has a
particular interest in multi-year commitments to carbon projects.
1.6. Anticipated Schedule
Once received, offers will be evaluated promptly. We anticipate that winning bids will be notified
as early as April 20th, 2007.
1.7. Submission Format
All proposals must be submitted via e-mail. All proposals must follow the Format of Response outlined in
section 5 of this RFP. Organizations may include attachments providing additional detail on their firm and
particular carbon offset projects. However, please note that lengthy responses are not encouraged.
Organizations wishing to propose multiple carbon offset projects for this tender must
submit a separate proposal for each project.
ICF International
07-028
1
March 21, 2007
ICF Tender No. 07-02 for Carbon Offsets
1.8. Notice of Intent to Bid
Organizations wishing to participate in this tender should submit their firm name and contact
information via email to Rahul Young, ICF International, ryoung@icfi.com, no later than 5:00 pm
PDT on Wednesday, March 28, in an email titled “ICF Tender 07-02—Intent to Bid”.
1.9. Bidder’s Questions and Answers
Please transmit any questions regarding this tender via email to both Craig Ebert
(cebert@icfi.com) and Rahul Young (ryoung@icfi.com) of ICF International no later than 5:00
pm PDT on Wednesday, March 28, in an email titled “ICF Tender 07-02—Questions.” On
Friday, March 30, ICF International will distribute one document containing all submitted
questions, and their corresponding answers, to all firms that have submitted a Notice of Intent to
Bid (as described in Section 1.8).
1.10. Submission Deadline
Proposals must be delivered via email to both Craig Ebert (cebert@icfi.com) and Rahul Young
(ryoung@icfi.com) of ICF International, no later than 5:00 pm PDT on Wednesday, April 4,
2007, in an email titled “ICF Tender 07-02—Submission”. Earlier submissions are strongly
encouraged. Proposals received after this deadline may not be considered. ICF International is
to be the recipient of all project proposals and questions from applicants.
2.
Portfolio Composition
The Company has set no predetermined mix of project types, geographic priorities, verification
standards, or other criteria for our portfolio of offsets. However, the final portfolio will likely
include a variety of projects, verification standards, and offset asset classes.
The Company has a strong preference for projects with a very strong demonstration of
additionality and significant secondary environmental and social benefits.
3.
Exclusion Criteria
The following requirements apply for all projects that will be included in the Company’s offset portfolio:
 All emission reduction projects must be verified by a third party.
 All projects must demonstrate clear additionality relative to business as usual. In particular,
while the Company will consider proposals in which Renewable Energy Certificates (RECs)
are being sold, it feels that REC certification standards alone do not provide sufficient proof
of additionality. For any offset bids derived from renewable energy sources, including RECs,
there must be a clear demonstration of the additionality of the carbon offsets.
 All projects must demonstrate the permanence of all emission reductions. Forestry and some
agricultural projects will be particularly scrutinized on this point, as will carbon capture and
sequestration (CCS) projects.
 Projects must demonstrate that, at worst, they produce no net negative social or
environmental impacts.
ICF International
07-028
2
March 21, 2007
ICF Tender No. 07-02 for Carbon Offsets
4.
Evaluation Criteria
Beyond these defined requirements, the Company will balance the strengths of each of the
proposed projects to develop a portfolio that reflects the Company’s goals in pursuing carbon
neutrality. In particular, the Company will consider:
 Additionality: As noted, all projects should have a clear demonstration of additionality. The
strongest demonstrations of additionality will meet specific tests (i.e., financial or barrier
analysis). In addition, the best projects will clearly pass the test of common sense that any
layperson can easily believe. Projects that can tell the most compelling additionality stories
will be preferred.
 Verification Processes: Regardless of the standard of project development, the Company
wants to understand the specific third-party verification conducted for each project in the
following areas:
– Methodology: The extent to which the methodology has been verified for the
appropriateness of calculations related to the project baseline and project activity.
– Ex-Post Verification: How the veracity of emission reductions has been verified.
– Monitoring: How the ongoing veracity of emission reductions has and will be verified.
– Double-Counting: What registry procedures, if any, are in place to prevent doublecounting of emission reductions? If no carbon asset is transferred to the Company for
retirement, the Company will want to understand the processes in place to ensure that the
offsets are actually retired.
 Secondary Benefits: Projects with strong secondary benefits to the environment and local
communities will be particularly attractive.
 Standards: The Company does not require that projects adhere to a specific standard;
though for those that do not, their methodology, verification and demonstration of
additionality will be particularly scrutinized. Projects that do adhere to a specific standard
should list this standard. Specifically, the Company is aware of and prefers the following
standards of verification:
– CDM Gold Standard (GS CERs)
– CDM (CERs)
– Voluntary Gold Standard (GS VERs)
– Voluntary Carbon Standard (VCUs)
 Commoditized Offsets: The Company prefers projects for which an actual certified carbon
asset is created and retired.
ICF International
07-028
3
March 21, 2007
ICF Tender No. 07-02 for Carbon Offsets
5.
Format of Response
Please fill in responses to all of the queries on the following pages. Please use the forms provided.
5.1. General
Tender Number
07-02
Organization Name
Contact
Name
Street
Address
City
State
ZIP Code
Telephone
E-mail
Website URL
Project
Name
Location
Type
Project Description
ICF International
07-028
Describe the proposed project, including project type and location, implementation plan and
schedule, current status of project, roles of implementing organization(s) and project partners.
4
March 21, 2007
ICF Tender No. 07-02 for Carbon Offsets
What is the price of the offsets being offered, including all fees, denominated in USD per metric ton of carbon dioxide
equivalent ($/tCO2e)? For projects in which a multi-year investment is possible, provide pricing for one-year and multi-year
offset purchases by the Company. Indicate what the payment terms/schedule for the offsets will be.
What vintages of offsets, by year, are available? If prices vary for different vintages, please provide a price for each vintage.
How many offsets are expected to be created each year (annual average) and made available for purchase by the Company?
Please denominate volumes in metric tons of carbon dioxide equivalent (tCO2e).
ICF International
07-028
5
March 21, 2007
ICF Tender No. 07-02 for Carbon Offsets
5.2. Additionality
Describe how the project achieves additionality and what specific tests have been applied to ensure the project’s additionality.
ICF International
07-028
6
March 21, 2007
ICF Tender No. 07-02 for Carbon Offsets
5.3. Co-Benefits
Describe all environmental, social and health co-benefits that result from the project. Please also address any areas where the
potential for negative co-benefits exists, and how the project activity will prevent or mitigate these negative impacts.
ICF International
07-028
7
March 21, 2007
ICF Tender No. 07-02 for Carbon Offsets
5.4. Project Risks
Discuss any technical, financial, ownership, environmental, leakage, underperformance and/or other risks that the project faces
over its life.
ICF International
07-028
8
March 21, 2007
ICF Tender No. 07-02 for Carbon Offsets
5.5. Monitoring and Verification
Describe the methodology or standards to be used in the monitoring and verification of the offsets.
Describe the proposed entity for conducting the M&V, including the entity’s qualifications.
ICF International
07-028
9
March 21, 2007
ICF Tender No. 07-02 for Carbon Offsets
5.6. Ownership
Provide evidence that the applicant has the rights to claim ownership and sell the offsets contained in the proposal.
ICF International
07-028
10
March 21, 2007
ICF Tender No. 07-02 for Carbon Offsets
5.7. Firm Description
Describe your firm’s experience with delivery of carbon offsets, including volume of offsets delivered to date, experience with
projects of the type proposed for this tender, and experience with offset projects in the country in which the proposed project is
located.
ICF International
07-028
11
March 21, 2007