Glossary

ClimeCo Promotes Dr. Scott Subler To Chief Science Officer

ClimeCo Promotes Dr. Scott Subler To Chief Science Officer

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
Contact: Nancy Marshall, Corporate Marketing Director
(864) 266‐1210 or nmarshall@climeco.com

ClimeCo Promotes Dr. Scott Subler To Chief Science Officer

Boyertown, PA, September 22, 2020 – ClimeCo is happy to announce the promotion of Dr. Scott Subler to the position of Chief Science Officer (CSO).  Dr. Subler has made an enduring mark on the carbon offset world over the last 15 years.  From overseeing the first US offset delivery from a dairy farm methane capture project to chairing the Offsets Committee for the Chicago Climate Exchange, Subler has been a major influence on many carbon offset methodologies that are used today.  His work investigating different types of lagoon cover systems for dairy and swine farms in different climates continues to impact new methane capture installations, and his advocacy for organic waste composting projects resulted in the protocol used today at the Climate Action Reserve.scott subler

Dr. Subler has been an influential leader, steadfast mentor, dependable manager, and reliable authority in the environmental project field.  His knowledge in the field of anaerobic digestion and waste management is inspiring, but it is his extensive network and background in new emerging markets that permit ClimeCo to be progressive in pursuing these new markets, allowing our company to meet our client’s needs.   

“I enjoy Scott’s enthusiasm, his ability to build teams and mentor staff, and his in-depth science background, critical to our foundation,” says Bill, Flederbach, President and CEO of ClimeCo.  “I am proud to call him my teammate, friend, and our Chief Science Officer!” 

Dr. Subler’s academic and professional knowledge and resources in soils biology and ecology have lent significant value to new emerging markets like Nature-based Solutions, regenerative agriculture, and many other soil ecosystem concentrations. 


About ClimeCo
 

ClimeCo Corporation is a respected advisor, transaction facilitator, and trader of environmental commodity market products. Specialized expertise in regulated carbon, regional criteria pollutant trading programs, voluntary markets, and project development and financing of GHG abatement and mitigation systems complement ClimeCo’s diverse portfolio. For more information or to discuss how ClimeCo can drive value for your organization, contact us at 484.415.0501, info@climeco.com, or through our website climeco.com

A New Approach to Mitigating Future Carbon Emissions

A New Approach to Mitigating Future Carbon Emissions

A New Approach to Mitigating Future Carbon Emissions


by David Priddy, Vice President of Business Development | August 27th, 2020

Seldom has a day gone by that we have not heard of a company or organization announcing new climate change commitments.  Just in the past few months, we have witnessed companies, including Apple, Delta Air Lines, and Unilever, announcing bold carbon-neutrality goals as they seek to do their part to address the climate crisis.  In fact, Microsoft’s plan to offset its entire carbon footprint dating back to its inception in 1975 may represent the most ambitious commitment that we’ve seen yet!

So, this leads us to a question we are often asked:

How can my organization achieve carbon neutrality while we continue to grow?”

While it may be game-on in the pursuit to green up your existing operations, you must also consider your company’s future.  As your business grows, implements new projects, expands office space, increases staff, constructs new facilities, or locates new business sites, you will contribute additional GHGs above and beyond your existing footprint.  This will need to be addressed as you plan your mitigation approach. 

So how can this be achieved?  Will there be enough carbon offsets available to meet your needs?  More importantly, is there a way for you to have more direct engagement when it comes to emission reduction activities that will align with your growth timeline?  Well, thanks to Climate Forward, a new program recently instituted by the Climate Action Reserve (the Reserve), the answer is yes!

Climate Forward

Climate Forward is a program that provides a practical solution for companies and other organizations that seek cost-effective mitigation of anticipated GHG emissions. The program is designed to facilitate investments in emission reduction projects today that will result in future GHG reductions that are aligned to mitigate the future emissions of a company, organization, or project.  Its purpose is to incentivize the implementation of emission reduction projects that would otherwise be unviable using traditional carbon offset programs.

Under this program, the Reserve issues Forecasted Mitigation Units (FMUs) upfront for a project’s entire crediting period upon the completion of its confirmation, a process conducted by an independent third party that demonstrates that the project has been implemented according to an approved methodology.  The methodologies within this program contain the eligibility rules, quantification methods, and documentation and confirmation requirements that ensure the consistency and rigor of GHG reduction accounting for a specific mitigation project.  Meanwhile, the up-front issuance of FMUs helps to shift the project’s economic curve to better incentivize long-term mitigation efforts, allowing the company to plan and implement emission reduction projects that align with their sustainability objectives.


FMUs versus Offsets

While FMUs and offsets are similar in that they are both equal to the reduction of one metric ton of carbon dioxide equivalent (CO2e), there are several differentiating factors between them.  The primary difference is that FMUs represent emissions that are expected to be reduced (ex-ante), while offsets represent emissions that have already been reduced and have completed a rigorous monitoring and verification process (ex-post).  While offsets are typically applied against past emission-producing activities, FMUs can only be applied against a future stream of greenhouse gas emissions.  While the detailed auditing process for both project types is similar, they occur at different stages of the project cycle: for offset projects, the “verification” process is conducted periodically throughout the crediting period but, for FMU projects, the “confirmation” process is done only once, at the beginning of the crediting period. This one-time confirmation process helps to facilitate the monetization of FMUs in the early stages of the project, which in turn can be used to support the financing of future activities associated with the project.


Benefits and Applications

The Climate Forward program offers several benefits to organizations and developers that are seeking carbon neutrality:

  • It reduces the barriers for innovative, targeted climate solutions.
  • It can incentivize the development of carbon projects that produce co-benefits that may help the organization achieve ESG goals above and beyond climate impacts; such co-benefits can be tailored to the organization’s goals and values.
  • Projects can be targeted to occur in the communities that are directly impacted by their operations.
  • Projects under these types of programs help demonstrate climate leadership.

One potential application of Climate Forward is for GHG mitigation requirements under the California Environmental Quality Act (CEQA).  CEQA requires state and local agencies to follow a protocol of analysis and public disclosure of future environmental impacts of a proposed project and to adopt feasible measures to mitigate those impacts.  Climate Forward can provide entities that are subject to CEQA GHG mitigation requirements with a cost-effective and environmentally rigorous option for future GHG mitigation.

Another potential application of Climate Forward is for developers of mixed-use communities to participate in reforestation projects, where the purchase of FMUs could be used to mitigate the carbon footprints of their projects while incentivizing reforestation efforts. In fact, ClimeCo is presently supporting a reforestation project in the Mississippi River Basin in partnership with Restore the Earth Foundation, using Climate Forward’s Reforestation methodology; the long-term goal of this project is to restore a total of 1 million acres using this methodology.


Getting Involved

Climate Forward provides organizations with a unique opportunity to partner with other organizations to implement sustainable projects while providing benefits to their future mitigation efforts.  As of this writing, there are a half-dozen methodologies that are either approved or under development in the Climate Forward program; however, there are many more creative, innovative mitigation activities that could be considered for development as a future methodology. The program is designed to expand the scope of feasible GHG mitigation project types by encouraging third parties to submit their methodologies for mitigation activities.  So, if you have an idea in mind for an innovative emission reduction or carbon sequestration project, ClimeCo is happy to help! 

About the Author

Dave Priddy is ClimeCo’s Vice President of Business Development. He has more than 25 years of experience in the environmental management field.  He is responsible for the strategy, development, and promotion of ClimeCo’s Nature-based Solutions initiative, and for developing mutually-beneficial partnerships with both landowners and conservation organizations that result in projects that generate positive environmental attributes. David holds a B.S. in Engineering from the University of Louisiana, Lafayette.

ClimeCo Ranks on Inc. Magazine’s 5000 List of America’s Fastest-Growing Private Companies

ClimeCo Ranks on Inc. Magazine’s 5000 List of America’s Fastest-Growing Private Companies

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
Contact: Nancy Marshall, Corporate Marketing Director
(864) 266‐1210 or nmarshall@climeco.com

ClimeCo Ranks on Inc. Magazine’s 5000 List of America’s Fastest-Growing Private Companies

Boyertown, PA, August 12, 2020 – Today, Inc. magazine revealed that ClimeCo has been included on its annual Inc. 5000 list, the most prestigious ranking of the nation’s fastest-growing private companies. Started in 1982, this prestigious list has become the hallmark of entrepreneurial success. From 2016 to 2019, ClimeCo saw 102% revenue growth and a 61% growth in number of employees.   

At ClimeCo we have a culture of creativity and empowerment and, most of all, a team with shared values,” says William Flederbach, ClimeCo PresidentWith a goal of making a difference each day and always doing the next right thing, we have created scalable GHG reduction projects and unparalleled environmental market expertise across North America. We never take our team nor our amazing clients for granted; this has allowed us to grow significantly as a company and, most of all, we really enjoy what we do.” 

The 2020 Inc. 5000 list is ranked according to percentage revenue growth between the years 2016 and 2019. To qualify, companies must have been privately held, for-profit, independent, U.S. based, and founded and generating revenue by March 31, 2016. Not only have the companies on the 2020 Inc. 5000 been very competitive within their own markets, but the list shows staggering growth compared with prior lists as well. The 2020 Inc. 5000 list of companies together achieved an incredible three-year average growth of over 500% and a median rate of 165%. The Inc. 5000’s aggregate revenue was $209 billion in 2019, accounting for over 1 million jobs over the past three years.   

About ClimeCo 

ClimeCo Corporation is a respected advisor, transaction facilitator, and trader of environmental commodity market products. Specialized expertise in regulated carbon, regional criteria pollutant trading programs, voluntary markets, and project development and financing of GHG abatement and mitigation systems complement ClimeCo’s diverse portfolio. For more information or to discuss how ClimeCo can drive value for your organization, contact us at 484.415.0501, info@climeco.com, or through our website climeco.com

About Inc. Media 

Founded in 1979 and acquired in 2005 by Mansueto Ventures, Inc. is the only major brand dedicated exclusively to owners and managers of growing private companies, with the aim to deliver real solutions for today’s innovative company builders. Inc. took home the National Magazine Award for General Excellence in both 2014 and 2012. The total monthly audience reach for the brand has been growing significantly, from 2,000,000 in 2010 to more than 20,000,000 today. For more information, visit www.inc.com

For information, call ClimeCo at 484-415-0501 or visit www.climeco.com.

Financial Due Diligence: Evaluating Environmental Opportunities and Risks

Financial Due Diligence: Evaluating Environmental Opportunities and Risks

Financial Due Diligence: Evaluating Environmental Opportunities and Risks


by Derek Six, Chief Business Officer | July 29th, 2020

Financial Due Diligence: Evaluating Environmental Opportunities and Risks

Over the past few years, we have observed a substantial increase in inquiries from Private Equity firms, Investment Advisors, and Mutual Fund managers seeking to better understand the environmental opportunities and risks related to investments in potential target firms.  Providing advice in this area has become one of the most interesting aspects of ClimeCo’s Policy & Advisory practice.  The subject has historically been nebulous and abstract, as many clients struggle to define environmental opportunities and risks, so getting started on this line of inquiry can be difficult.

Environmental Opportunities and Risks

So, what do we mean by the term “environmental opportunities and risks?”  In its simplest form, it can be defined as the impact, either positive or negative, that environmental markets and regulations may have on the value of a portfolio of assets.  While it is common practice to include an environmental assessment to identify potential liabilities associated with a targeted acquisition, we have found that surprisingly little attention is often paid to the potential opportunities and risks posed by environmental markets … those markets that facilitate the trading of environmental assets.


At ClimeCo, we believe in the power of financial markets to solve environmental challenges.  With this lens in mind, our approach to defining the question focuses on what types of environmental markets might impact the firm in question, whether positively or negatively.

For example:

  • Is the firm regulated under any local emission/pollution reduction programs?
  • Is the firm regulated under any state, regional, or national GHG cap and trade programs?
  • Does the firm have a technology or service that could assist other firms in these markets?
  • Is the firm likely to be pressured by consumers or other stakeholders to take voluntary action to address environmental impacts, or could it find a competitive advantage in doing so?
  • Are there opportunities where addressing environmental impacts can ease regulatory or permitting efforts?

As you can see, the analysis can be complex and requires a deep understanding of the various environmental markets to which a firm might be subject.  ClimeCo takes a unique approach to these questions, flipping the basic question on its head: rather than seeing only risks, we also search for opportunities and value.  Environmental markets provide incentives for firms to improve their operations, and they often convey valuable environmental property rights.

What Firms Should Be Aware Of

We often find that firms are unaware of some of the rights that they might hold.  As an example, a firm considering the shuttering of a manufacturing facility would not typically do so without attempting to sell and maximize the disposal value of the tangible assets on site.  However, we find that they commonly ignore the value of various intangible environmental permits the facility holds.  In regions where there are markets for permit capacity, these can be of significant value but only if sold in a timely manner.


More recently, the bulk of these types of inquiries have come from investment firms seeking to understand the potential impacts of current and proposed climate change legislation.  Entities doing business and/or located in California, Quebec, Alberta, or the US northeast region are likely to be impacted, though there are other states that are seeking to follow suit.  For example, California has comprehensive climate legislation in place; this legislation includes a Cap and Trade program for GHGs with transparent market pricing, as well as a myriad of other complementary programs and regulations.  For some entities that fall into this compliance program, there are provisions for free Allowances (permits to emit one metric ton of CO2e) based on historic emissions while, for others, allocations can be purchased at auction by the state or through a robust secondary spot and futures market. Meanwhile, firms that reside in the state but do not fall within the parameters of the compliance program may have the option to opt-in to the program to capitalize on market opportunities.  Therefore, firms need to understand the impact of this market on their own operations as well as on their supply chains, customers, and utility providers. 

Markets such as these provide opportunities, as there is tangible value in reducing GHG emissions, providing services to these market programs, or providing technologies to these markets.  Helping firms to understand future pricing expectations, potential regulatory changes, and market engagement strategies is one of the most interesting things that we do.

Regardless of what type of firm you are considering investing in, or where that firm has operations, understanding potential environmental market opportunities and risks should no longer be a pro-forma checkbox on your diligence list.  This should be an important lens through which to view every aspect of a firm’s income statement and balance sheet.

About the Author

Derek Six serves as Chief Business Officer at ClimeCo, where he leads the company’s cross-cutting business functions, as well as the firm’s ODS management program and private equity fund. He holds an MBA in investment management and portfolio analysis from Pennsylvania State University’s Smeal College of Business.

A New Tool for Rangeland Trusts

A New Tool for Rangeland Trusts

A New Tool for Rangeland Trusts


by David Priddy, Vice President of Business Development | June 24th, 2020

A New Tool for Rangeland Trusts

The prairies of the western United States, consisting of millions of acres of grassland, habitat, and complex ecosystems, have supported ranchers and their families for generations.  A symbol of pride, freedom, and independence, the prairies have sustained the American ranching lifestyle – a lifestyle that promotes hard and honest work, strong family values, and resilient communities.  Unfortunately, this lifestyle that embodies images of the old west and the growth of America is in jeopardy.

You see, prairies in the U.S. are quickly disappearing because they are being converted into farmland, though invasive species, overgrazing, and climate change are also culprits.  Many ranchers struggle to hold on to their family legacy due to rising property taxes, as the next generation considers other career options.  All of this contributes to a lifestyle that is sadly fading away.

A New Tool for the Toolbox

Rangeland trusts and other organizations dedicated to preserving the land and its legacy work tirelessly to combat this problem through the implementation and management of conservation easements.  Now, these organizations have a new means available to them that can further incentivize landowners to consider easements on their property.  This new tool utilizes the power of environmental markets by promoting good ranching practices that sequester carbon in the soil.  This can result in the development of carbon offsets, which are units of greenhouse gases that are prevented from being released into the atmosphere, the rights to which can be purchased and applied by another entity.  These offsets are typically sold to organizations that desire to voluntarily mitigate, or “offset”, their carbon footprint, the proceeds from which can generate additional revenue streams for ranchers. With more and more corporations and not-for-profit organizations committing to carbon-neutral goals, the demand for offsets continues to grow.

The process for developing grassland-based carbon offset projects on ranchland is a straight-forward one.  First, a property is evaluated for its eligibility and project feasibility by a facilitator such as ClimeCo, and then a financial proforma is developed and presented to the rancher and land trust partner.  Once the decision has been made by the landowner to proceed, the land trust will work to implement an easement that restricts the future tillage of the land.  After this is in place, the project developer will coordinate all subsequent steps, to include independent, 3rd-party project verification and then registration, certification, and monetization of the credits.  Depending on the project and the desires of the landowner, the developer may also choose to invest in the project to cover the upfront development costs, to include the implementation of the easement, thus removing a potential barrier for the landowner.

These offset projects can present multiple benefits to the rangeland trust:

  • First, the revenues from these projects may combine with Agricultural Conservation Easement Program (ACEP) funding to entice ranchers to preserve more land.
  • Secondly, the upfront payments to cover the cost of implementing and maintaining the easement can help address a typical hurdle faced by many landowners.
  • Finally, knowing that the project facilitator will handle all the activities outside of what the land trust does best will provide them with peace of mind.

Like ranchers, rangeland trusts must rely on tools of the trade in order to advance the preservation of our nation’s grasslands.  ClimeCo’s grassland offset program provides the latest tool for the land trust’s toolbox and we are ready to help you on your next preservation effort.

To learn more about grasslands preservation, please contact us.

About the Author

Dave Priddy is ClimeCo’s Vice President of Business Development. He has more than 25 years of experience in the environmental management field.  He is responsible for the strategy, development, and promotion of ClimeCo’s Nature-based Solutions initiative, and for developing mutually-beneficial partnerships with both landowners and conservation organizations that result in projects that generate positive environmental attributes. David holds a B.S. in Engineering from the University of Louisiana, Lafayette.