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Pacific Carbon Trust2013/14–2015/16 Service Plan

www.pacificcarbontrust.com

http://www.pacificcarbontrust.com

Service Plan 2013/14–2015/16 Pacific Carbon Trust

Erratum to the 2013/14-2015/16 Service plan

Financial OutlOOk

For the year ended March 31Actual

2011/12

($000s)

Forecast 2012/13

($000s)

Budget 2013/14 ($000s)

Budget 2014/15 ($000s)

Budget 2015/16 ($000s)

Revenues

Offset revenue 13,940 19,500 20,000 20,000 20,000

Interest revenue 257 300 400 430 460

Total Revenues 14,197 19,800 20,400 20,430 20,460

Expenses

Strategic Acquisitions

Salaries and Benefits 609 500 500 500 500

Operating and Administration 7,336 9,336 10,680 12,405 13,847

Professional Services 1,226 521 521 521 521

Rent 71 84 78 65 65

Amortization 22 23 33 36 38

9,264 10,464 11,812 13,527 14,971

Business Development


Operating and Administration 236 148 143 143 143

Professional Services 346 632 632 632 632

Rent 90 84 77 65 65


1,427 1,830 1,828 1,819 1,821

Finance and Operations


Operating and Administration 184 148 143 143 143

Professional Services 190 547 547 547 547

Rent 74 84 77 65 65


969 1,319 1,317 1,308 1,310

Total Operating Expenses 11,660 13,613 14,957 16,654 18,102

Surplus for the year 2,537 6,187 5,443 3,776 2,358

Accumulated Surplus, beginning of year 16,814 19,350 25,537 30,980 34,756

Accumulated Surplus, end of year 19,351 25,537 30,980 34,756 37,114

This is the corrected Financial Outlook page. Only the Actual 2011/12 numbers have been changed.

2 PacificCarbonTrust ServicePlan2013/14–2015/16

Contents

Letter from the Board Chair to the Minister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1 Organizational Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

WhatWeProvide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5PartnersandSuppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

CorporateGovernance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6PacificCarbonTrustBoardandSupportingCommittees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6SeniorManagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7GovernancePrinciples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

2 Strategic Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

WorldCarbonMarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9NorthAmericanCarbonMarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9IndustryEngagementinGHGProjects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10OpportunitiesandRisks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11OperationalCapacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

3 Goals, Strategies, Performance Measures and Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Goal1:Anorganizationthatdeliversahighquality,costeffectiveanddiversifiedcarbonoffsetportfolio . . . . . 14Goal2:Anorganizationthatishighlyvaluedbythepublicsector,thebroaderpublic,andindustry . . . . . . . 15Goal3:Aneffective,environmentallyresponsibleorganizationknownforitsindustryexpertise. . . . . . . . . . 16BenchmarksandPerformanceManagementSystems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Government’sLetterofExpectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4 Summary Financial Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

FinancialOutlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20FutureOutlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21CapitalPlanandMajorCapitalProjectDisclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Appendix 1: Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

ContactInformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

ServicePlan2013/14–2015/16 PacificCarbonTrust 3

TheHonourableMichaeldeJong MinisterofFinance GovernmentofBritishColumbia

DearMinister,

OnbehalfoftheBoardofDirectorsandemployeesofPacificCarbonTrust,Iampleasedtopresentour2013/14 to2015/16ServicePlan.PacificCarbonTrustiswellpositionedtoplayakeyroledrivingthedevelopmentofthelow-carboneconomyinBCwhilecontinuingtosupportpublicsectorcarbonneutrality.

Moreandmorejurisdictionsaroundtheworldareexploringavarietyofmarketandregulatorymechanismstoaddressclimatechange.TheProvince’sCarbonNeutralGovernmentprogramhasnotonlypositionedthepublicsectorasaNorthAmericanleaderinclimateaction,butisalsohelpingbusinessesacrosstheprovincemakethetransitiontoalow-carboneconomy.In2013/14,PacificCarbonTrustwillcontinuetobuilditsportfolioofoffsets,supportinginnovativeemissionreductionsthatdelivereconomic,environmental,andsocialbenefits.

PacificCarbonTrusthasestablishedahealthypipelineofcarbonoffsetstomeetpublicsectorobligationsforcarbonneutrality,andforeseesminimalriskofmissingitsprimarymandateduringtheperiodofthisserviceplan.PacificCarbonTrusthasparticipatedinaperformancereviewwiththeOfficeoftheAuditorGeneralastheyreviewthecarbonneutralprograminBC.WelookforwardtoreceivingthefindingsandrecommendationsfromtheAuditorGeneral.Inaddition,arecentDeloitteperformancereviewidentifiedopportunitiesforPacificCarbonTrusttoimproveitsservicedelivery,andinthecomingplanningperiod,PacificCarbonTrustwillcontinuetoimplementstrategicimprovements.

TherehavebeennomaterialchangestothestructureormandateofPacificCarbonTrustsincethelastserviceplanwaspublished.However,theorganizationhasincreaseditsclientengagementafterconductinganoutreachcampaignin2012/13.InpartnershipwiththeClimateActionSecretariat,PacificCarbonTrusthasestablishedtheCarbonOffsetAdvisoryPanel,whichactsasanavenueforschoolboards,post-secondaryinstitutions,healthauthorities,andCrowncorporationstoprovideadviceandguidanceonthestructureanddiversityofPacificCarbonTrust’soffsetportfolio.PacificCarbonTrustwillincreaseitsoutreachactivitiestoitsclientsandthebroaderpublic.AdditionalclientengagementhasbeenaddedtothefunctionofSMARTTool,andtheProvinceestablishedfundingforK-12schoolsforemissionsreductionprojects.

PacificCarbonTrustanticipatesanewsetofrisksandopportunitiesfromthecarbonindustryasmarketsinCaliforniaandQuebecbecomeoperationalin2013.Thenewmarketactivitymayputastrainonthealreadyshortsupplyofcarbonprofessionalsandthird-partyauditorsthatPacificCarbonTrustdependsonforitsbusinessoperations.However,asthesenewmarketsopen,thisactivitywillalsolikelyleadtogreaterawarenessofcarbontradinginNorthAmericaand,ultimately,demandforcarbonoffsets.AsemissionstradingmarketsareestablishedinNorthAmericaandaroundtheworld,PacificCarbonTrustwillconsiderengagingwiththosemarkets,toshareknowledgeandbuildstrategicpartnershipsforthenetbenefitoftheprovince.

PacificCarbonTrust’s2013/14to2015/16ServicePlanwaspreparedunderthedirectionoftheBoardofDirectors inaccordancewiththeBudget Transparency and Accountability ActandtheBCReportingPrinciples.Theplan isconsistentwithgovernment’sstrategicprioritiesandfiscalplan.Theboardisaccountableforthecontentsof theplan,includingtheinformationandhowitisprepared.AllsignificantassumptionsandrisksidentifiedasofJanuary15,2013havebeenconsideredinpreparingthisplan.TheperformancemeasuresareconsistentwithPacificCarbonTrust’smandateandgoals,andfocusonaspectscriticaltotheorganization’ssuccess.TheperformancetargetsintheplanhavebeendeterminedbasedonanassessmentofPacificCarbonTrust’soperatingenvironment,forecastconditions,riskassessmentandexpectedperformance.

IwouldliketoextendthankstoPacificCarbonTruststaffandboardmembersfortheirhardworkanddedication tothegrowthofastrongandgreenereconomyinBC.

ChrisTrumpy Chair,BoardofDirectors

January15,2013

Letter from the Board Chair to the Minister


1 Organizational Overview

PacificCarbonTrustisaBCCrowncorporationthatdelivers high-qualitygreenhousegas(GHG)offsetstohelpclientsmeet theircarbonreductiongoals.Itsdualmandateincludespurchasingoffsetsthatreduceemissionsprovince-widewhilesupportingthegrowthofthelow-carboneconomyinBC.PacificCarbonTrustpurchasesoffsetsfromBC-basedGHGreductionorsequestrationprojectsthatareincompliancewiththeBCemissionsoffsetsregulation,ensuringworld-classoffsetsbuiltonrecognizedinternationalstandards.

Acarbonoffsetrepresentsaquantifiedreductioningreenhousegasemissions,resultingfromactivitiessuchasimprovedenergyefficiency,whichcanbeusedtobalancetheemissionsfromanothersource,suchastravel.PacificCarbonTrustdeliversoffsetstomanyclients,includingtheBCgovernmentandbroaderpublicserviceorganizations.

PacificCarbonTrustbenefitsthepublic,theenvironment,andtheeconomyofBCbymotivatinggreenhousegasreductionactivities;creatingjobsinbothruralandurbanareasthroughpublicandprivateinvestment;meetingourobligationstohelpthepublicsectorandprivateorganizationsbecomecarbonneutral;providingneweconomicopportunitiesforBCbusinessinboththecleantechnologysectorandtraditionalsectorsimplementingnewtechnologies;helpingtraditionalindustries,suchaspulpandpaper,toremaincompetitiveandinnovative;andprovidingafocalapointforindustrytoleverage newapproachestoinvestinginalow-carboneconomy.

Vision:Ourvisionistoleverage BC’scarbonneutralcommitment oftodaytobuildthelowcarboneconomyoftomorrow.

Values:AsPacificCarbonTrustgrows,itsdevelopmentiscentered onthreevalues:credibility,sustainabilityandentrepreneurship.

Goals:

• AcquireadiversifiedportfolioofBC-basedcarbonoffsetstomeetpublicandprivatesectordemandforcarbonneutrality.

• Formallianceswithpotentialoffsetpartnersthatenable PCTtosellcarbonoffsetsbeyondBCand/orbuildourinternalexpertise.

• Designandselloffsetportfoliostowholesalecustomerstodriverevenueintotheprovince.

• BuildsupportforPacificCarbonTrust’smissiontomaximizethebenefitofBC’senvironmentalandclimatechangepolicies.

Mandate:PacificCarbonTrustismandatedtodeliverqualityBC-basedgreenhousegasoffsetstohelpclientsmeettheircarbon-reductiongoalsandtofosterthegrowthofthelow-carboneconomyinBC.

Legislation:PacificCarbonTrustwasincorporatedasaCrowncorporationinMarch2008undertheBusiness Corporations Act.Thecorporation isownedbytheProvinceof BritishColumbiaandreportstoitsshareholder,theMinisterofFinance.

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d.com

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WhaT We PrOvidePacificCarbonTrustfocusesondeliveringaportfolioofcarbonoffsetsfromadiverseandinnovativerangeofemissions-reducingactivitiesthatoffsetstheBCprovincialgovernment’scarbonfootprintandfostersthegrowthofalow-carboneconomyinBC.Toeffectivelycarryoutitsoperations,thecorporation’sbusinesslinesincludebusinessdevelopmentandcarbonoffsetdeliveries,whicharesupportedbyastrongfinancialinfrastructure.As aCrowncorporationandproponentofenvironmentalstewardship,PacificCarbonTrustmustalsobetransparentandpubliclyaccountableinitsperformanceandoperationswhileprovidingbenefitstothepublic.PacificCarbonTrustoperatesoutofVictoria,BritishColumbia.

Asabuyerofcarbonoffsets,PacificCarbonTrustmotivatesgreenhousegasreductionactivities,whichbenefit thepublicandtheeconomyofBCby:

• improvingtheclimatethroughreducedgreenhousegases;

• supportingandcreatingjobsinbothruralandurbanareasresultingfromthecreationofemission reductionprojects;

• implementingnewtechnologyinboththecleantechnologysectorandtraditionalsectors;and

• helpingtraditionalindustries,suchaspulpandpaper,toremaincompetitiveandinnovative.

STakehOLderSPacificCarbonTrust’sstakeholdersincludeitsshareholder,the MinisterofFinance;ourclients;partners;andsuppliers.

ClientsOurprimaryclientsaretheBCgovernmentandbroaderpublicsectororganizations.UndertheProvince’slegislatedcarbonneutralcommitment,thepublicsectormeasuresitscarbonfootprintandreducesitsemissionsasmuchaspossible,offsettingremainingemissionsatyear-end.PacificCarbonTrustprovidesBC-based,regulatoryqualityoffsetstomeetthisprovincialcommitment.

Todate,PacificCarbonTrusthassold1,564,777carbonoffsetstoourclientstobalancetheemissionsgeneratedbypublicsectoroperationsandprivateclients.Wewillcontinuetodeliveronourobligationstohelpclientsachievecarbonneutrality.

Partners and SuppliersTodeliverthequalityoffsetsthatourclientsrequire,PacificCarbonTrustworkswithawidevarietyofprofessionals,includingprojectdevelopers,engineers,environmentalconsultants,andaccreditedprojectauditorswhoprovidequalityassuranceincarbonoffsetdelivery.Duringthe2008to2011growthperiodandleadinguptothefirstgovernmentrequirementforcarbonneutrality,PacificCarbonTrustdevelopedasupplychainwiththeaforementionedgroupstoensurethatafunctioningmarketexiststocreateanddeliveroffsets.Today,theBC carbonoffsetindustryiswell-establishedandcontinuestogainindustryparticipation.

PacificCarbonTrustalsoworkswithmunicipalities,FirstNations,environmentalgroupsandothernon-governmentorganizationstodiscussopportunitiesandchallengesinthisgrowingindustry.

Todeliveronitscoremandate,PacificCarbonTrustmaintainsacloseworkingrelationshipwiththeMinistryofEnvironment’sClimateActionSecretariat(responsiblefortheClimateActionPlan,theGreenhouse Gas Reduction Targets Actandgovernment’scarbonneutralprogram)andtheMinistryofCitizens’Services,whichprovidesemissionmeasurementandreductionsservicessuchasSMARTTool.


COrPOraTe GOvernanCePacificCarbonTrustisownedbytheProvinceofBritishColumbia,anditsshareholderistheMinisterofFinance.AsaCrownagencyregisteredundertheBusiness Corporations Act,itoperatesunderthegovernanceandaccountabilitysystemsetoutbygovernment.Thisprocessincludesaregularreviewofthecorporation’s mandateandactivities,guidedbyaGovernment’sLetterofExpectations(GLE).Theletteroutlinesthe corporation’sandgovernment’sresponsibilitiesandisjointlysignedbytheMinisterofFinanceandthe ChairofthePacificCarbonTrustboard.

Pacific Carbon Trust Board and Supporting CommitteesThePacificCarbonTrustboardofdirectorsadoptedtheProvinceofBC’sgovernanceprinciplesasoutlined intheProvinceofBritishColumbia’sGovernanceFrameworkforCrownCorporations.PacificCarbonTrust followstheGovernanceandDisclosureGuidelinesforGoverningBoardsofBritishColumbiaPublicSectorOrganizationsandhasacorporategovernancemanualthatincludesformalguidelinesandcorporate governancepolicies.InformationoncorporategovernancecanbefoundatthePacificCarbonTrustwebsite, www.pacificcarbontrust.com/who-we-are/our-team/

PacificCarbonTrustisgovernedbyasix-memberboardsupportedbythecorporatesecretary.PacificCarbonTrustboardmembersare:

• ChrisTrumpy,Chair

• HeatherHolden,DirectorandChairoftheAuditandFinanceSub-committee

• MichaelH.Watson,Director

• JamesS.Mutter,Director

• StevenHnatiuk,Director

• H.AnneLippert,Director

InformationonPacificCarbonTrustboardmemberscanbefoundonthePacificCarbonTrustwebsite.AlsoavailableonthePacificCarbonTrustwebsitearekeyaccountabilitydocuments,includingGovernment’sLetterofExpectations,serviceplans,annualreportsandfinancialstatements.

http://www.pacificcarbontrust.com/who-we-are/our-team/


Theboardofdirectorsmeetsatleastfourtimesperyear,andateachofthesemeetingsboardmembersregularlysetasidetimeforanin-camerasessionwherecorporationmanagementstaffarenotpresent.Italsoholdsmonthlyconferencecallupdates.Theboardisresponsiblefortheoveralldirectionofthecorporation,including:

• settingitsstrategicdirection;

• ensuringappropriatefinancialandoperationalcontrolsareinplace;

• ensuringPacificCarbonTrusthastheappropriateresourcestomeetitsmandate;

• monitoringkeyactivitiesandapprovingmajortransactions;

• reportingtotheMinisterofFinanceonactivities,accountabilitiesandperformance;and

• providingthepublicwithrelevantandtimelyinformationaboutPacificCarbonTrust’sintentionsandoperations.

TheAuditandFinanceCommittee,establishedbytheboard,meetsatleastfourtimesayear.Thecommitteeassiststheboardinfulfillingitsfinancialaccountabilityandoversightresponsibilitiesbyreviewingfinancialinformationandfinancialsystems,andmonitoringthesystemsofriskmanagementandinternalcontrols.

Asrequired,thecommitteeprovidesrecommendationstotheboard.Allboardmembersaremembersof theAuditandFinanceCommittee.

Senior Management• D.ScottMacDonald,ChiefExecutiveOfficer

• DavidMoffat,ManagingDirector,BusinessDevelopment

• DavidMuter,ManagingDirector,StrategicAcquisitions

• RaymondChan,ManagingDirector,StrategicPartnershipsandClientRelations

Governance PrinciplesPacificCarbonTrustcomplieswiththedisclosurerequirementsoftheBestPracticeGuidelinesonGovernanceandDisclosurepublishedbytheBoardResourcingandDevelopmentOffice.Thedisclosuresincludetermsofreference fortheboardanditscommittees,theChairandtheCEO.Directorbiographies,directorattendancerecords, boardmeetinginformationandboardminutesarealsodisclosed.Thisinformationcanbefoundat www.pacificcarbontrust.com/documents-and-forms/corporate-documents/

http://www.pacificcarbontrust.com/documents-and-forms/corporate-documents/


2 Strategic Context

Sinceitsinceptionin2008,PacificCarbonTrusthasbeenonapathofknowledge-buildingandfosteringcollaborationamongstgovernment,industry,municipalitiesandFirstNations.Todate,ithasestablishedanoperatingenvironmentinwhichthesegroupscometogetherintheformofthecarbonmarketinBC.Lookingforward,PacificCarbonTrustseesanadvantageousfutureforthecontinuedengagementofthesestakeholdergroupsinthemarket.Internally,PacificCarbonTrustwilloperatewiththesamebusinessstructureinthe2013/14yearthatithasinthepast.Anintegralpartofthatstructureiscontinuousimprovement,whichseestheregularupdatingofinformationprocessesandservicesasneededtoensurePacificCarbonTrustmaintainshighstandardsofoperation.

Duringthe2012/13fiscalyear,PacificCarbonTrustengagedDeloitteToucheLLPtoexecuteaperformance reviewonPacificCarbonTrust’sbusinessoperations.Thescopeofworkforthisperformancereviewcoveredreporting,disclosure,riskmanagement,security,informationmanagement,andcorporateaccountability. PacificCarbonTrusttooktheresultingrecommendationsfromthereportandhasusedthemtohelpincrease theefficiencyandproductivityofitsbusiness.PacificCarbonTrustalsoengagedPriceWaterhouseCooperstocompleteastudyontheeconomiceffectsofcarbonoffsetprojectsinBC,whichfoundthatover$245million GDPand2,800jobshavebeensupportedbyprojectsoverthe2008-2012period.Thefullreportscanbefound atwww.pacificcarbontrust.com/documents-and-forms/carbon-industry-intelligence/

http://www.pacificcarbontrust.com/documents-and-forms/carbon-industry-intelligence/


WOrLd CarBOn MarkeTSGlobalcarbonoffsetmarketshaveseensteadygrowthsincetheirbeginningin2004,evenwiththeadventofthecurrentglobaleconomicinstability.Currently,marketsareestimatedtobevaluedatover$176billiondollars.1 However,recentuncertaintyhasemergedintheEuropeanUnionEmissionsTradingsystem(EUETS)asaresultoftheendoftheKyotocomplianceperiodandalackofanyfurtherinternationallybindingagreementsbeyond2012.Thatuncertainty,combinedwithamarketoversupply,hasmadepricesforoffsetsandallocationsdecreaseintheEUETS.TheEuropeanCommissionisinvestigatingmethodsforcorrectingthemarketoversupplyandintendstorightthesituationin2013,restoringmarketpricestocontinuereductionincentivesto2020.Otherexistingmarketshavealsobeenslowertoemergethanexpected:theNewZealandemissionstradingsystem,whichistiedtotheEUETS,hasalsobeenexposedtooversupplyandlowprices.Japanhasbegunre-thinkingitsreductionsstrategyinthefaceoftheFukushimadisaster,anditsemissionstargetshavebeenputonholduntilaviableenergyplancanbeimplemented.

Othermarketscontinuetoemerge.Australia,SouthKoreaandKazakhstanplantobegintradingin2015,whileChina’spilot programsintheprovinceofGuangdongandthecitiesofShanghaiandBeijingaresettolaunchin2013.2Additionally,carbontradingandsimilarcreditingmechanismsarebeingconsideredinBrazil,Chile,Columbia,CostsRica,India,Indonesia,Jordan,Mexico,Morocco,Peru,SouthAfrica,Thailand,Turkey,UkraineandVietnam.3Overall,theseactivitiesrepresentarapidexpansionofemergingcarbonmarketsaroundtheglobe.

PacificCarbonTrustwillcontinuetomonitorthesemarketsastheyemergeandseekopportunitiestoshareknowledgewherepossible.Already,PacificCarbonTrustisbecominginternationallyrecognizedasawell-establishedinstitution:delegationsandresearchersfromAustralia,China,SingaporeandQuebechavesoughtPacificCarbonTrust’sinputintheirownemissionsreductionplanning.

nOrTh aMeriCan CarBOn MarkeTSBeginningin2013,NorthAmericancarbonmarketsaresettoseeamajorincreaseinactivity.CaliforniawillofficiallylaunchitscapandtradesysteminJanuary,withitsfirstquarterlyallowanceauctionalreadyhavingtakenplaceinNovember2012.Quebec’scapandtradesystemwillalsolaunchinJanuary,withitsfirstallowanceauctiontakingplaceinthespringof2013.Bothmarketshavegreatlyincreasedthenumberofentitiesactivelymonitoring,measuring,andreducingtheiremissions.Thestartoftheseemissionstradingmarketshavecreatedastrongsignalofmarketcertaintyandregulatorysupport,whichindicatesthatBritishColumbiaiswell-alignedwithothercarbonconsciousjurisdictionsinNorthAmericaastheycommittoclimateactionandemissionsreduction.

ThemarketshavealsocreatedanewdemandforNorthAmericansourcedcarbonoffsets.Inadditiontoallowancesgeneratedbycappedfacilities,theseentitiescanuseapprovedcarbonoffsetstocovertheiremissions.Projectsinforestry,livestock,ozonedepletinggases,andlandfillwastethatreduceemissionsareeligibletoselloffsetsintotheCaliforniaandQuebecmarkets.Overall,thiscreatesasignificantincreaseindemandforNorthAmericangreenhousegasprojects.

1 Latest data from World Bank Carbon Finance Unit2 Thomson Reuters, Point Carbon3 World Bank, Partnership for Market Readiness Program

Already,PacificCarbonTrustisbecominginternationallyrecognizedasawell-establishedinstitution:delegationsandresearchersfromAustralia,China,SingaporeandQuebechavesoughtPacificCarbonTrust’sinputintheirownemissionsreductionplanning.


TheconsiderableexpansionoftheNorthAmericanmarketsduringthe2012/13year,withfurtherplannedexpansionsin2015,providessignificantopportunitiesforPacificCarbonTrusttoengageinnewmarkets.Additionally,asothercapandtradesystemsemergearoundtheworld,PacificCarbonTrustcanseekopportunitiestoenterorengagewiththosemarketsforthebenefitoftheProvince.Benefitscancomeintheformofincreasedrevenuesfromthesaleofoffsets,partnershipagreementsthatincreasePacificCarbonTrust’sinfluenceintheglobalcarbonmarketplace,orknowledge-sharingandlearningthatallowsPacificCarbonTrusttobetterserveitspublicandprivateclientshereinBC.

induSTry enGaGeMenT in GhG PrOjeCTSCompaniesintransport,pulpandpaper,forestry,oilandgas,mining,wastemanagement,buildingproductsandagriculturehaveallgeneratedoffsetsfromGHGprojectsinBC.Theseprojectshaveresultedintheimplementationoffuelswitching,energyefficiencyandsequestrationactivitiestoreducepollutionintheprovinceacrossavarietyofBC’seconomicsectors.PacificCarbonTrusthasseenageneralincreaseinthenumberofcorporationsinterestedinimplementingGHGprojects,andanincreaseintheannualnumberofprojectproposals.Weexpectthesetrendstocontinueasthemarketmatures.

PacificCarbonTrustwillcontinuetoengagewithBCindustriestodriveinnovativeoffsetprojects.Forexample,byprovidingprotocolsinthelandfillbiofilter,landfillgas,andgreenbuildingsareas,PacificCarbonTrustwillbeable toworkwithcompaniesinthoseindustriestobringtheirGHGprojectstofruition,creatingnewrevenuesourcesformunicipalitiesandotherentities;thesesortsofprojectsandothersareexpectedtocomeonlineduringthereportingperiodforthisServicePlan.

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OPPOrTuniTieS and riSkSPacificCarbonTrustispursuingavarietyofstrategiestotakeadvantageofnewmarketopportunitiesandmitigaterisks.

Opportunity SiGnifiCanCe PaCifiC CarBOn TruST’S PLan Of aCTiOn

Public Sector Organization support and engagement

Greaterengagementwillallowforongoingbusinessimprovements,increasedawarenessofPacificCarbonTrust’sroleinthelow-carboneconomy,andcleareralignmentwithclients’needs.

Engageclientsinmeetingtheircarbonoffsetneeds,andthelargerbusinessandenvironmentalcommunitytogeneratestrategicsupportandpartnerships.

IncreaseunderstandingoftheroleofcarbonoffsetsandPacificCarbonTrustasatoolfortacklingclimatechange.

California and Quebec carbon markets

Themarketallowsupto8%ofacappedentity’sreductionstocomefromcarbonoffsets,withover435businessesneedingreductionsintheUnitedStates.

Continuetomonitorthedevelopmentof themarkettoidentifyopportunitiesfor PacificCarbonTrustandbenefitsfortheprovinceofBC.

ContinuetobuildexpertisewithBCcarbonoffsetfirms,whicharenowexportingtheirexpertisetonewmarkets.

Global interest in the Pacific Carbon Trust model

SeveralcountrieshavesoughtadvicefromPacificCarbonTrustregardingsettingupasimilarorganization.

Useopportunitiesasameanstoopenlinesofcommunicationandengagementwithotherjurisdictionsandcarbonprogramswiththegoalofbuildingpartnerships,expertise,andknowledge.

Global increase in the use of carbon offsets

AccordingtoreportsfromtheWorldBankandThompsonReuters,boththecompliancemarketsandvoluntarycarbonoffsetmarketsareprojectedtogrowintheirdemandedvolumeduringthe2012to2016period.

DeveloparobustplanformarketentrancestrategiesintocomplianceandvoluntarymarketswherePacificCarbonTrustidentifiesopportunities.

Made in BC clean technology

EconomicactivityacrossBCindustriesovertimewillallowformoreGHGprojectopportunities.

Developmentofcleantechnologyandgreenjobsintheprovincestrengthensthelow-carboneconomy.

MonitoropportunitiestosupportPacificCarbonTrust’smandateofgrowingthe low-carboneconomy.

New sector engagement

DevelopmentofoffsetsfromnewsectorsinBCincreasesthescopeofemissionreductionsacrosstheprovincialemissionsinventory.

ContinuetoresearchopportunitiestoworkwithindustriesinBCandapplyinnovativeapproachestoGHGreductions.


riSk SiGnifiCanCe Pacific Carbon Trust plan of action

Lack of offset demand growth and market isolation

IncreaseddemandforcarbonoffsetsinBChasbeenslow,andPacificCarbonTrustfacesariskaroundalackofgrowthopportunities.Alsowithoutlinkingorcollaboratingwithothermarkets,overtimemarketparticipantsmayloseinterest.

EncourageinternationalvoluntaryandcomplianceinterestintheBCcarbonoffsetmarket.

Exploreopportunitiestoengageinothermarkets.

Sluggish U.S. economic rebound, potential slow-down of China’s economy, and slow global economy

PacificCarbonTrust’soffsetsupplyfacesriskfromaslowlyrecoveringeconomyandpossibleeconomicdownturnintheUnitedStates;projectscouldbedelayedorcancelled.

Activelymanageriskwithoffsetprojectproponents.

DiversifyPacificCarbonTrust’soffsetportfoliotoprotectagainsteconomicshocks.

Contractinexcessifitsannualdemandtomitigateriskofdamagesfrompotentialshortages.

Labour market/specialized professionals

PacificCarbonTrustandtheindustrymayfaceashortfallofexperiencedprofessionalsavailablefortheemergingcarbonoffsetmarkets.

Supportknowledgesharingandindustrytrainingsessions.

ShareinformationacrossindustryandeducationcentrestobuildprofessionalcapacityinBC.

Public misinformation and confusion about offsets

TherehasbeensomegeneralconfusionandmisinformationabouttheoffsettingprocessinBC,potentiallycloudingpublicunderstandingofitsimportanceandeffectiveness.

Highlightcommunity,economicandenvironmentalbenefitsofprojects.

Continuetoengagewithclientsandthepublictoensureastrongmessageofcredibilityandtransparencyiscommunicated.

Highlighttheprojectsthathavereducedemissionsintheprovince.

Loss of market supply potential due to cap and trade

PacificCarbonTrustmayseealossofopportunitiestopurchasefromcertainprojecttypesastheybecomeeligibleforsaleintotheQuebecmarket.ThemarkethasopenedhigherlevelsofcompetitionforCanadianprojects.

EngagewithindustrytoensurethatPacificCarbonTrusthasstrongrelationshipswithcompaniesinterestedinundertakingGHGprojects.

Monitorpotentialprojectavailabilityaseligibilitycriteriaprogresses.

Implementation of the low carbon fuel standard

ThelowcarbonfuelstandardoffersahigherpriceonemissionreductionsthanthepricePacificCarbonTrustcanoffer.Asubsetofpotentialtransportation-relatedprojectswillhaveincentivetoregistertheiremissionreductionsundertheLowCarbonFuelStandardratherthanthroughoffsetsales toPacificCarbonTrust.

Continuetoworkwiththetransportationindustryandinvestigateapproachestoreducingemissionsfromtransportationsources.

WorkwiththeMinistryofEnergyandMinesandtheClimateActionSecretariattoensureregulationsarecomplementaryandareunderstoodbyrelevantstakeholders.


OPeraTiOnaL CaPaCiTyPacificCarbonTrustplanstomeetthecomingyear’sgoalswithastaffcomplementofupto20employees.Capacityneedswillbemonitoredasrequirementschangeovertime.AstheCaliforniamarketgrows,therewillbeahighdemandforexperiencedcarbonfinanceprofessionals,whichcreatesariskforPacificCarbonTrustoflosingkeystaff.

PacificCarbonTrustalsomonitorsstafflevelsasapartofitsoverallenterpriseriskmanagement;tothatend, amorecomprehensivesuccessionplanisbeingdeveloped.


3 Goals, Strategies, Performance Measures and Targets

PacificCarbonTrust’smandateistodeliverqualityBC-basedgreenhousegasoffsetstohelpclientsmeettheircarbonreductiongoalsandtosupportgrowthofthelow-carboneconomyinBC.Thisdirectionevolvesfrom theBCClimateActionPlan’sgoaltoreducegreenhousegasesby33%from2007levelsby2020andthelargerprovincialgoalto“remainaclimateactionleader.”

Goal 1:Anorganizationthatdeliversahighquality,costeffectiveanddiversifiedcarbonoffsetportfolio.

PacificCarbonTrusthasanoffsetportfoliothatspansregionsandindustriesacrosstheprovince,whichstudieshavefoundcontributetoeconomicandemploymentgrowth.PacificCarbonTrustplanstobuilduponitscurrentportfoliobyimplementingprojectsinnewsectorsusingnewtechnologiesandprojecttypes.Bypurchasingfromadiversearrayofprojects,PacificCarbonTrustwillensurethatitsoffsetportfolioalignswiththediversestakeholdergroupsthatvalueit.

PacificCarbonTrusthasdemonstratedthatithastheresourcesandcapabilitytomeetBCgovernmentneeds.PacificCarbonTrusthasdevelopeditsownrisk-managementsystem,hasastreamlinedprocurementprocess,anindependentoffsetregistrationsystem,andacycleofcontinuousimprovement.Theseprocessesensureacarefullyandpurposefullymanagedoffsetportfolio.

Strategies:1. Competitivelynegotiateoffsetsdealswhileensuringoffsetqualityanddiversity.

2. Monitorandmaintainanappropriatelevelofriskintheportfolioofoffsetprojects.

3. ImplementmechanismsthatsupportthegrowthofBC-basedcleantechnologies.

4. Manageaportfolioofoffsetprojectsthataresourcedfromacrosstheprovinceanditsindustries.

PerformanceMeasures Targets

2011/12Actual

2012/13Forecast 2013/14 2014/15 2015/16

1. %ofpublicandprivateclientdemandmet 100% 100% 100% 100% 100%

2. Averagepricepaidforoffsets Lessthan$25

Lessthan$25

Lessthan$25

Lessthan$25

Lessthan$25


Goal 2:Anorganizationthatishighlyvaluedbythepublicsector,thebroaderpublic,andindustry.

PacificCarbonTrustcontinuestobuilditsexpertisethroughhiringandtrainingahigh-performanceteam.AllemployeesseekprofessionaldevelopmentopportunitiesandindustryrelationshipsthathelpthemandPacificCarbonTrustasawholecontinuetoleadinthecarbonspace.Additionally,PacificCarbonTrustwillcontinueindustryoutreachtoidentifyoffsetdevelopmentopportunitiesandsupportthegrowthofthecarbonmarket. ThiswillhelpsupportahealthyeconomyinBCwhilefurtheringthecorporatestrategytohelpallclientsmeet theircarbonreductiongoals.

Progressivecompaniesinthevoluntaryoffsettingmarketcontinuetoriseinnumberasclimatechangebecomesamorepressingconcern.In2013/14,PacificCarbonTrustwillseektobuildfurtherrelationshipswithsuchemergingcarbonjurisdictionsacrosstheglobeand,asthecarbonmarketscontinuetogrow,tobecomeawell-knownandwell-regardedstandardinthecarboneconomy.

PacificCarbonTrusthasdesigneditsportfolioobjectivestoconsidertheeconomic,environmental,andsocialsignificanceofprojectsandthepotentialforthoseprojectstofosterindustry-widetechnologyadoption.Itplanstopursuethoseprojectsthatnotonlycreateahighyieldofoffsetsbutalsofosterinnovation,economicgrowth,environmentalprotection,orsocialenhancements,forthegreaterbenefitoftheProvince.

Strategies:1. Implementandexecuteasalesstrategytodeliveroffsetstoabroadbaseofclients.

2. Promoteaccuracyandtransparencyinoffsettinggreenhousegasemissions.

3. Workwithoffsetmarketparticipantsandstakeholderstobuildexpertiseanddrivegrowthinthe carbonmarket.

4. Maintainabalancedoffsetportfoliotostimulatealow-carboneconomy.


2011/12Actual

2012/13Forecast 2013/14 2014/15 2015/16

1. %ofstakeholderswithapositiveopinionofPCT

78% 90% 90% 90% 90%


Goal 3: Aneffective,environmentallyresponsibleorganizationknownforitsindustryexpertise.

WithcarbonmarketsinNorthAmericanowoperational,andthemarketinBCwell-established,PacificCarbon Trusthastheopportunitytoplayaleadingroleincarbontransactions.Todoso,PacificCarbonTrustmustensure iteffectivelymanagespublicsectorresourcesandmaintainsrobustindustryexpertisetoengageinmarketsathomeandabroad.

PacificCarbonTrustwillensurethatinthe2013/14to2015/16perioditcontinuouslyimprovesitsoperationalefficiencyandstrivestomaximizeopportunitiesforcarbontransactions.Indoingso,PacificCarbonTrustwillstrivetobetransparenttoitsstakeholdersandthegreaterpublic,andaccountabletotheProvinceforitswork.

Movingintoitsfourthyearofoperationsin2012/13,PacificCarbonTrusthasestablishedstrongknowledgeandexperienceinworkingwithgreenhousegasreductionprojectsacrosstheprovinceanditsindustrialsectors.IthastheknowledgeandexpertisenecessarytoensureBCleveragestheopportunitiestoreduceemissionsinitsindustries,andthroughout2013/14andbeyondPacificCarbonTrustwillcontinuetoexploresuchopportunities.

Strategies:1. Continuallyfindwaystoimproveoperationalefficienciesandserviceforclientsandsuppliers.

2. Continuetofosteroffsetexpertisebyencouragingstaffdevelopmentandbuildingindustryrelationships.

3. Buildateamofhigh-performingprofessionalsbydevelopingsharedvaluestoguidedecisions.

4. Betransparentandaccountableinallbusinessactivities.


2011/12Actual

2012/13Forecast 2013/14 2014/15 2015/16

1. Lowerthanaverageorganizationalcarbonfootprint

1.8Lessthan

3.1Lessthan

3.1Lessthan

3.1Lessthan

3.1

2. Numberofpartnershipagreements 5 7 9 11 13


BenChMarkS and PerfOrManCe ManaGeMenT SySTeMSPacificCarbonTrustregularlymonitors,tracks,andreportsonperformancethroughanumberofmeasures,aswellaspost-deliveryanalysisonprojects,whichinformsfuturesupplyforecasting.In2012/13PacificCarbonTrustunderwentaperformanceevaluationbyDeloitte,whichprovidedrecommendationsforwaysinwhichPacificCarbonTrustcanimproveitsoperations.Throughoutthe2012/13and2013/14years,PacificCarbonTrustwillimplementchangesbasedontherecommendationsfromtheperformancereview.

PacificCarbonTrustmaintainsanenterprise-wideriskregister,whichmonitorsalllossexposuresfacedbythecorporation.Therelevantareasofthebusinessaremonitoredtoinformtheriskregister,whichisupdatedonaquarterlybasis.Additionally,factorssuchasstakeholdersatisfactionareannuallymonitoredanddatacollectedforperformancemeasurement.

Intermsofbenchmarking,organizationssimilartoPacificCarbonTrustarefewinnumber.Researchhasrevealedotheroffsetprocurementorganizationsaresmallanddonotpubliclyreportontheirperformance.Whereperformanceinformationisavailable,PacificCarbonTrustwillcompareitsoperationalperformancetothatofotheroffsetproviders.PacificCarbonTrustperformanceisavailableonitswebsite,andindependentanalysts showPacificCarbonTrustasthethird-largestoffsetstandardbyvalueinNorthAmerica.4

4 Thomson Reuters, Point Carbon

photocred

itRo

nTh

iele


GOvernMenT’S LeTTer Of exPeCTaTiOnSGovernmentdirectionforthePacificCarbonTrustisoutlinedintheGovernment’sLetterofExpectations(GLE). ThisisanagreementbetweentheMinisterofFinanceonbehalfofthegovernmentandthePacificCarbonTrustboardofdirectorsthatestablishesprioritiesandexpectationsforPacificCarbonTrust.ThechartbelowhighlightstheexpectationsandPacificCarbonTrust’salignment.

direCTiOn CurrenT STaTuS

Acquirearisk-managed,highqualityanddiversifiedcarbonoffsetportfoliothatisindependentlyreviewedandmeetspublicsectorcarbonneutralitycommitments.

Ongoing:PacificCarbonTrusthassuccessfullymettwoyearsofgovernmentcarbonneutralityrequirements,andhasestablishedarobustportfoliotosupplyfuturedemand.In2012/13,PCTsoughtanindependentperformancereviewandstudiesontheperformanceoftheorganizationandcarbonneutralprogram.Thereviewfoundbothstrengthsandareasforimprovement,andthestudydetailedeconomicbenefitsthathavearisenfromtheprogram.PCTwillcontinuetoseekoutinnovativeprojectsthatcontributetoahigh-qualityportfolio.

Securenewcustomerstopurchasecarbonproductsanddriverevenueintotheprovince.

Ongoing:PCThasmaintainedaprivateclientbaseover thepastfiscalyears.PCTiscurrentlyexploringstrategiestohelpgrowtheoverallmarketinBC,andtofindoffsetcustomersinotheremergingcarbonmarkets.AkeyfocuswillbetoensurethatthesetransactionsaddvaluetotheprovinceofBC.

IncreasetheawarenesswithinthepublicsectorandbroaderpublicoftheCorporation’splansandaccomplishmentsandtheroleofcarbonmarketsinclimatechangepolicy.

Ongoing:For2013-14,PacificCarbonTrusthasdevelopedanextensiveoutreachschedulethatwillincludemeetings,presentations,workshopsandwebinars.Aswell,PacificCarbonTrustandtheClimateActionSecretariathaveformedaworkinggrouptodevelopcommunicationsmaterialsforitspublicsectorclients.ThePacificCarbonTrustwebsitewillcontinuetoevolvetoaddresstheneedsofitsclientsandthebroaderpublic,includinginformationonprojectawardsandbusinessprocessimprovements.

Engagethecarbonmarketindustrytosupportthegrowthofthelow-carboneconomyinBCandpositiontheprovincetobenefitfromemergingcarbonmarkets.

Ongoing:PCThasbeenverysuccessfulinbringingadiversegroupofstakeholderstogethertoformaBCcarbonmarket:auditingfirms,industries,government,andFirstNationscommunities.PCTwillendeavourtomaintaintheseconnectionsacrossstakeholdergroupstoensurethatallbenefitfromthedevelopinglow-carboneconomy.


4 Summary financial Outlook

finanCiaL OuTLOOk

For the year ended March 31Actual

2011/12

($000s)

Forecast 2012/13

($000s)

Budget 2013/14 ($000s)

Budget 2014/15 ($000s)

Budget 2015/16 ($000s)

Revenues

Offsetrevenue 12,990 19,500 20,000 20,000 20,000

Interestrevenue 155 300 400 430 460

Total Revenues 13,145 19,800 20,400 20,430 20,460

Expenses

StrategicAcquisitions

SalariesandBenefits 511 500 500 500 500

OperatingandAdministration 6,380 9,336 10,680 12,405 13,847

ProfessionalServices 210 521 521 521 521

Rent 66 84 78 65 65


7,189 10,464 11,812 13,527 14,971

BusinessDevelopment


OperatingandAdministration 184 148 143 143 143


Rent 96 84 77 65 65


1,368 1,830 1,828 1,819 1,821

FinanceandOperations


OperatingandAdministration 139 148 143 143 143


Rent 73 84 77 65 65


1,034 1,319 1,317 1,308 1,310

Total Operating Expenses 9,591 13,613 14,957 16,654 18,102

Surplus for the year 3,554 6,187 5,443 3,776 2,358

Accumulated Surplus, beginning of year 16,814 19,350 25,537 30,980 34,756

Accumulated Surplus, end of year 20,368 25,537 30,980 34,756 37,114


aSSuMPTiOnSRevenue• Offsetrevenuesarebasedonatransactionpriceof$25/tonneofCO2eandontheestimatedannualdelivery

ofoffsets.Theactualfor2011/12andtheforecastfor2012/13includerevenuefromoffsetsdeliveredtogovernmentinJune2012tosatisfygovernment’scarbonneutralcommitmentsfor2011.

• Totaloffsetdemandisstableat800,000tonnesperyear,andrevenueisrecognizedfrompublicsectororganizationsonceannuallystartinginthe2012/13fiscalyear.

• Interestincomeisbasedontimingofforecastedcashflowsandassumescontinuedlowmarketreturns.

Expenses• Expendituremanagementitemsregardingfiscalmeasuresrequiredbytheshareholderhavebeenincorporated

inthisfinancialoutlook.

• Offsetcostsareassumedtoescalatewithinflation(2.5%estimated)andarebasedonforecastedlevels ofdemand.

• SalariesandbenefitsmaychangetoaccountforpossibleincreasesinFTEsshoulddemandandworkloadincrease.

• Professionalservicesincludelegalcosts,managementconsultingandothercontractedservices.PacificCarbonTrustusesexternalresourcesforspecific,short-termexpertiseasrequired.

• Otheroverheadcosts(rent,systemscosts,etc.)arebasedonexistingagreementsandassumptionsoncontractpricechangesbeyondthosedates.

• Amortizationforecastsarebasedonestimatedusefullivesofassetsandapprovedplansforfuturecapitalspending.

Equity and Debt• PacificCarbonTrustisexpectedtohave$25.5millioninequitybasedonthe2012/13projections,an

accumulationofoperatinggrantsandnetincome.PacificCarbonTrusthasnooutstandinglong-termdebt.

• Basedontheseassumptions,PacificCarbonTrustwillcontinuetogeneratesurplusfundsto2014/15.Theboardofdirectorsisworkingwiththeshareholdertoidentifypotentialusesforthesefunds.

Capital Expenditures• Capitalexpendituresrepresentthecostofimplementingcorporateinformationtechnologyapplications

andinfrastructure.


fuTure OuTLOOk2013/14willrepresentcontinuedmaturityasPacificCarbonTrusthonesitsbusinessmodelandinvestigatesotheropportunitiesinthecarbonmarkets.WewillcontinuetosupplytheBCgovernmentwithoffsetstomeetitscarbonneutralitycommitment.Atthesametime,PacificCarbonTrustwillextenditseffortsintoprivatewholesalecarbonoffsettradingandimplementopportunitiestoexpandthelow-carboneconomy.TheseactivitiesarereflectedinPacificCarbonTrust’sfinancialoutlookforsteadyassetgrowth.

PacificCarbonTrustiscontractuallypositionedtomeetthedemandsofallpublicsectororganizationsforthe2012calendaryear,andexpectstomeetalldemandsforyearsthereafter.ThemajorityofPacificCarbonTrust’sexpensesarerelatedtothepurchasingofoffsetstoensureafullportfolioismaintainedfortheBCgovernment.Projectedexpensesaredependentontheactualvolumeofoffsetsdelivered.

Ifcap-and-tradeisadoptedbyBritishColumbia,financialforecastswouldgreatlychangeduetoaconsiderableincreaseindemandforoffsetsandanintroductionoffloatingmarketprices,whichmayaffectthecurrentpricescheme.Ifthisscenarioweretoexist,thescaleofPacificCarbonTrust’soperationscouldbeadjustedtocapitalizeonmarketopportunities;bothrevenuesandexpensescouldincreasesubstantially.PacificCarbonTrustiscurrentlycapableofmeetingademandrequirementof800,000carbonoffsetcreditsperyear,andifthatvolumeweretoincrease,thescaleofPacificCarbonTrust’soperationsmayneedtoincrementallyincreaseaswell.

Whilethebudgetpresentedrepresentsawell-consideredthree-yearforecast,therearesomeuncertaintiesaroundthesizeandvalueofthecarbonmarketinNorthAmerica.PacificCarbonTrustwillcontinuetomonitortheseissuesandensurethatBritishColumbiaiswellpositionedtotakeadvantageofanycarbonmarketopportunitiesthatariseduringthenextfewyears.

CaPiTaL PLan and MajOr CaPiTaL PrOjeCT diSCLOSurePacificCarbonTrustdoesnotanticipateanymajorcapitalinvestmentsduringthe2012/13to2015/16fiscalyears.Typically,PacificCarbonTrustspendslessthan$100,000peryearoncapitalinvestmentsintheformofminortenantimprovementsandinformationtechnologyupgrades.

2012/13 2013/14 2014/15 2015/16

$8,000 $163,000 $75,000 $75,000


appendix 1: Performance Measures

MeaSure definiTiOn raTiOnaLe BenChMarkinG

% of public and private client demand met

Monitorsthecorporation’sabilitytomeetthedemandsofitsclients,bothregulatedandvoluntary.

Offsetvolumesaremonitoredinthedeliverypipeline,anddeliveredoffsetsaretrackedontheMarkitEnvironmentalRegistry.

ThismeasurewaschosenbecauseitdirectscorporatestrategiestowardensuringPacificCarbonTrustdeliversenoughoffsetstomeetclientrequirementsinachallengingoffsetprojectenvironment.

Numberofoffsetsalesvs.otheroffsetproviders,wheredataisavailable.

Average price paid for offsets

MonitorstheaveragepricepaidbyPacificCarbonTrustforoffsets.

ThisinformationisavailablefromPacificCarbonTrustoperationsandiscollectedfromitspurchaseexpenseaccountinginformation.

Thismeasurewaschosenbecauseoffsetpricesconstitutethemajorityofexpenses.Providingcost-effectiveoffsetsisimportantformanagingpublicsectorfundsandhelpstokeepPacificCarbonTrustfinanciallyviable.

PacificCarbonTrustmonitorsindustryandmarketinformationforpricesofvariousoffsetsinNorthAmericatocomparethemarketvalueofPacificCarbonUnits(offsets)withotherstandards.

% of stakeholders with a positive opinion of PCT

MonitorssatisfactionlevelsamongstPacificCarbonTrust’sclientsandindustrypartners.

Thisinformationiscollectedthroughanannualsurveyofcustomer,suppliers,andpartners.

CustomersatisfactionmeasuresthevalueofPacificCarbonTrusttoclients,suppliers,andpartnersinhelpingthemmeettheircarbonreductiongoals.Throughoutthereportingperiod,PacificCarbonTrustwillcontinuetodevelopstrongcustomerrelationships.

Customersatisfactionlevelsinsimilarinstitutions(forexample,banks).

Lower than average organizational carbon footprint

Monitorstheorganization’slevelofgreenhousegasemissionsperfulltimeemployee.

InformationiscollectedonemissionsusingSMARTToolandcompareswithcoregovernmentresultsreportedthroughrequirementsunderthepublicsectorCarbonNeutralProgram.

ThismeasureisimportantindemonstratingPacificCarbonTrustsleadershipinalowcarboneconomybyreducingitsowncarbonfootprint.

Thecarbonfootprintofcoregovernmentandothersimilar-sizedCrowncorporations.

# of partnership agreements

Monitorsthenumberofpartnershipswithotherrelatedorganizations.

Datacanbemeasuredthrough thenumberofformalagreementsinplace.

ThismeasureisimportantindemonstratingPacificCarbonTrust’sengagementwithlike-mindedorganizationswiththelong-termgoalofgrowingthelow-carboneconomyinBC.PacificCarbonTrustrecognizesthatworkingwithotherorganizationsleveragesadditionalresourcesandcooperationtohelptheprovincetransitiontoalow-carboneconomy.

NumberofpartnershipsestablishedbyotherCrowncorporations,bothprovinciallyandfederally.

COnTaCT infOrMaTiOnPacific Carbon Trust BritishColumbia

FormoreinformationonPacificCarbonTrust, pleasecontactusat:

250-952-6793

[email protected]

Orvisit: www.pacificcarbontrust.com

mailto:[email protected]

http://www.pacificcarbontrust.com

pacific carbon trust - british columbia · service plan 2013/14–2015/16 pacific carbon trust...

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