Peer Reviewed and Innovative Carbon Offsets

History of Offset Guidance 2008 First ACUPCC offset protocol & guidance developed in 2008 2015 Climate Leaderships Commitments launched 2015 Sustainability & Climate Action Planning Guide written to condense & update all existing guidance to support launch of Commitments 2015 Carbon Credit & Purchasing Program (C2P2) pilot 2015 AASHE session on offsetting 2016 Formation of Technical Advisory Group 2016 Revision of offset guidance 2016 Second Nature. All rights reserved. www.secondnature.org

Rationale for Revision What Changed? Several Trends Highlighted Pace of Change Offset markets stabilized Interest in small-scale & local offsets New work in forest-based offsets Rapid growth of on-campus renewables Financial complexities & new options 2016 Second Nature. All rights reserved. www.secondnature.org

Process Technical Advisory Group Generative Network Function Result of AASHE Networking session in 2015 25+ signatory representatives Brainstorming/discussion conference calls Focused discussions of revision process Joint drafting of revised document Public comment period Multiple sessions at AASHE 2016 2016 Second Nature. All rights reserved. www.secondnature.org

New Guidance Principles of High-quality Offsets Offset projects are real and emissions reductions are additional Offset projects are transparent Emissions reductions are measurable Emissions reductions are permanent Emissions reductions are verified Offset projects are synchronous Offset projects account for leakage Offset projects include co-benefits Credits are enforceable Credits are registered Credits are not double-counted Credits are retired 2016 Second Nature. All rights reserved. www.secondnature.org

Scope 3 Offsetting New Peer-reviewed & Innovative Offsets Foster innovation & flexibility in addressing scope 3 emissions An important goal of the Climate Leadership Commitments is to utilize the educational and research capacities of signatories to advance the science and practice of addressing climate change. The offset space represents a unique opportunity for signatories to demonstrate leadership in developing new and innovative offset protocols. Therefore, the Commitments allow for scope 3 emissions up to a total limit of 30% of the total campus emissions to be offset by peerreviewed or innovative (limit of 10% of total campus emissions) offset projects. 2016 Second Nature. All rights reserved. www.secondnature.org

Scope 3 Offsetting New Peer-reviewed & Innovative Offsets Peer-reviewed monitored through a peer-to-peer network to provide third-party review provide hands on educational opportunities for students, fosters small scale projects reduces risk of developing new registered protocol Innovative more experimental must outline which offset principles apply, which don t must include a transition plan for more rigorous verification 2016 Second Nature. All rights reserved. www.secondnature.org

Offset Guidance Sustainability Planning & Climate Action Guide (secondnature.org/climate-guidance) Building Blocks for Climate Action & Sustainability Carbon Management & Greenhouse Gas Mitigation Carbon Markets & Offsetshttp://secondnature.org/climateguidance/sustainability-planning-and-climate-actionguide/building-blocks-for-sustainability-planning-and-climateaction/carbon-management-greenhouse-gasmitigation/#Carbon_Markets_Offsets 2016 Second Nature. All rights reserved. www.secondnature.org

Peer Reviewed and Innovative Offsets October 18, 2016 Charles Adair Duke Carbon Offsets Initiative Tani Colbert-Sangree Oberlin College & Tomorrow s Climate Solutions

Current Project Examples Waste to Energy Urban Forestry Peatland Restoration Avoided Deforestation Energy Efficiency Residential Solar Clean Cookstoves Ozone Depleting Substance Destruction

Basic Criteria (PAVER) Permanent The reduction must last in perpetuity Additional The reduction would not have occurred in a business-as-usual scenario Verifiable The reduction must be able to be verified with data Enforceable The reduction must be counted only once and then retired Real The reduction must not be due to false accounting methodology

Project Protocol

Project Development

Potential Challenges Project type or protocol does not exist Project is too small to justify 3 rd party verification

How do we encourage innovation? Flexibility Expand options Share best practices Connect with others Create a path to official verification

Innovative Offsets Must meet most PAVER requirements Must show how the project is working to eventually meet all PAVER requirements Must still track and measure offsets Can only use innovative project offsets for Scope 3 Limited to 10% of total emissions annually Allows institutions to leverage their academic & research resources without being penalized as first actors

Examples Energy efficiency double counting Urban Forestry permanence

Peer Review vs. Innovative Offsets Offset Credit Characteristics Peer Review Innovative Offsets PAVER requirements: Fulfill Completely Fulfill most, provide pathway to PAVER Accredited 3 rd party verification: Marketable: Would pass Non-marketable; but goal to be same quality Would not pass Non-marketable Internal capacity building & educational value: Reinforce academic mission and community benefits Reinforce academic mission and community benefits

Peer Review & Innovative: Goals Reduce non-project Costs Project documentation Verification Incentivize new projects Risk assurance for first-actors

Peer Review Process

Peer Review Committee 1. Develop & structure the program 2. Advise new project organizers 3. Authorize institutions as peer reviewers 4. New protocol review & approval

Offset Network

Offset Network - Mission To facilitate and catalyze high-integrity, unique offset projects that provide educational and research opportunities for students, faculty, and staff by connecting peer institutions and aggregating best practices.

Offset Network

Offset Network & Second Nature Seeking Peer Review Committee Member nominations Peer Review Committee to inform: Peer Review Process Second Nature Guidance Document on Carbon Offsetting for Peer Review & Innovative Offset Projects Build relationships with existing GHG registries

Contact Info Charles Adair, Program Manager, Duke Carbon Offsets Initiative Email: charles.adair@duke.edu Tani Colbert-Sangree, Oberlin Project & Tomorrow s Climate Solutions Email: tani@tomorrowsclimatesolutions.com