The Climate Trust 2011 Annual Report

2011 Annual Report2011 Annual Report“The Climate Trust plays a key role “The Climate Trust plays a key role as the energy industry looks for as the energy industry looks for best options to meet environmental best options to meet environmental commitments while providing safe, commitments while providing safe, reliable and cost-e? ective electric reliable and cost-e? ective electric service to customers.”service to customers.”—Pat Reiten, Pat Reiten, President and CEO, Pacifi c PowerPresident and CEO, Pacifi c PowerThe Climate Trust’s mission is to provide expertise, financing, and The Climate Trust’s mission is to provide expertise, financing, and inspiration to accelerate innovative climate solutions that endure.inspiration to accelerate innovative climate solutions that endure.The Climate Trust 2011 Annual Report | 2Redefining Climate LeadershipRedefining Climate Leadership Core PrinciplesThe Climate Trust’s 6 guiding principles of operation.CCCore PrriiinnncciiplleesssThe CClimimate Trust’’ss 6 6guiiddinng principles oof operation.Collective action. We develop productive partnerships with public, private, and nonprofi t organizations, and their stakeholders, that serve as models of collective action. Integrity. We uphold the highest level of integrity in our work, business transactions and partnerships. Innovation. We continually strive to fi nd, develop, and promote new services, technologies, and processes, and so we manage and tolerate higher levels of risk as a result. Service. We are passionate about providing excellent service to our partners, our communities, and our planet that result in meaningful, quantifi able, and enduring impacts.Stewardship. We are responsible stewards of precious global resources—natural, fi nancial, and human—for the benefi t of current and future generations. Sustainability. We promote environmental, economic, and social sustainability, beginning with our own actions.The imperative of immediate action to address dangerous climate change is clear. The higher costs of inaction and potential irreversible damage to our environment and economy are large even though they may not yet be fully understood down to the last detail. In 2011, global collective action has been insu? cient, even as many governments, whole industries, and individual corporate leaders shift their responses to address climate change. Over the past year, The Climate Trust advanced our accomplishments and mission, and charted our initial steps in our three (3) year Business Plan. We approached retiring almost 1 million metric tons of greenhouse gas emissions (GHGs), however, we ask ourselves how we can work with partners to achieve 1 billion metric tons of GHG reductions by 2017.We have added new sta? and increased the expertise of existing sta? in the agriculture, forestry, renewable energy and transportation sectors. Yet, we ask ourselves how we can e? ectively share our expertise to accelerate faster emission reductions, while increasing the knowledge of our industry partners and policy makers, particularly using the projects we fi nance as models.Part of our role as an innovator is providing the inspiration, expertise and fi nancing necessary to accelerate long-term climate solutions across many sectors of our economy. The Climate Trust is pursuing results that matt er, working with companies that must meet regulatory requirements in Oregon, Washington, California and elsewhere, as well as companies that choose to voluntarily reduce their impact on our fragile climate. When looking back at the accomplishments detailed in this report, we are proud of the progress we achieved with our partners in 2011. When a farmer or forest owner is making a decision to fi nance a new project that reduces emissions, The Climate Trust will be there to help. When a company is preparing to use carbon credits to comply with legislation or a voluntary commitment, The Climate Trust will be there to implement solutions. When a government o? cial is developing innovative policy measures to incentivize lower-carbon technologies, The Climate Trust will be there to provide advice. As California implements its emerging cap-and-trade system, The Climate Trust will be there to provide resources and recommendations based on our 14 years of experience. The importance of swiftly deploying climate change solutions cannot be overstated, and we must recognize that though we may make signifi cant progress in any given year, our individual e? orts will be insu? cient until our collective action has the required large scale impacts that are needed to reverse climate change. Only with the collective action of our supporters – individuals, businesses, government, foundations, and most importantly, our partners – can The Climate Trust set even more ambitious goals for 2012 to implement our vision of ensuring a secure, resilient, and just future. We look forward to deepening and broadening our relationships in 2012 and we thank you for your energy and passion.Sincerely,Ben Vitale Laura BeanePresident Board ChairFACING PAGE: The Climate Trust has been helping energy companies develop customized solutions that meet their unique needs, for over a decade.“Our fi nancing of community-based dairy biogas “Our fi nancing of community-based dairy biogas projects in the Pacifi c Northwest has been projects in the Pacifi c Northwest has been strengthened by The Climate Trust over a number of strengthened by The Climate Trust over a number of years. The Trust encourages innovation as a means years. The Trust encourages innovation as a means to reach our joint goals, particularly to create new to reach our joint goals, particularly to create new revenue streams that support local family-scale dairy revenue streams that support local family-scale dairy farms and economic development.”farms and economic development.”—Kevin Maas, Kevin Maas, President and Co-Founder of President and Co-Founder of Farm Power NorthwestFarm Power NorthwestResponsible waste management systems not only reduce Responsible waste management systems not only reduce environmental impacts, they become a valuable source of environmental impacts, they become a valuable source of renewable energy.renewable energy.The Climate Trust 2011 Annual Report | 4BiogasBiogas“Growing Oregon’s Biogas Industry.” This groundbreaking and frequently-cited white paper resulted from a series of meetings with biogas project developers, regulatory agencies and environmental groups that raised the need to document the benefi ts, opportunities and barriers to developing a biogas industry in Oregon. The study breaks down the current capacity of infrastructure to generate biogas energy and how more of that capacity could be utilized. The paper was funded by the Energy Trust of Oregon and writt en by Peter Weisberg of The Climate Trust and Thad Roth of the Energy Trust of Oregon with technical support from many partner agencies.2011 Year in Review2011 Year in ReviewExpansion of Pioneering Climate LawAfter a successful campaign to update the Oregon Carbon Dioxide Standard involving environmentalists, businesses and utilities, the amended law now allows for fi nancing projects that reduce methane and nitrous oxide emissions, in addition to carbon dioxide emissions. This change provides an opportunity for utilities as well as The Climate Trust to fund a broader array of local projects that reduce these internationally recognized greenhouse gases, which are much more potent than carbon dioxide. The Climate Trust’s partnership with Roseburg Energy is the very fi rst methane reduction project funded under the new Oregon Standard, and also its fi rst project under the Climate Action Reserve (CAR) protocol. The project captures and burns methane emissions from the Douglas County Landfi ll — signifi cantly reducing the release of greenhouse gases and creating enough renewable energy to power nearly 1,150 homes.Innovations in AgricultureRural agriculture holds a signifi cant opportunity to mitigate climate change, particularly through the development and adoption of innovative models, including improved nutrient management, avoided grassland conversion and biochar. The Climate Trust is a partner on multiple, United States Department of Agriculture Conservation Innovation Grants this year. The fi rst grant – in partnership with The Fertilizer Institute – provided funding to design a program that encourages farmers to adopt best nutrient management practices and road test various carbon quantifi cation protocols. The second – in partnership with Ducks Unlimited – was designed to prevent the conversion of native grasslands into cropland across the Northern Great Plains. Biogas Milestones The Climate Trust reached a number of milestones this year in the biogas industry, chief among them, joining the American Biogas Council, and publishing a groundbreaking and frequently-cited biogas white paper in collaboration with Energy Trust of Oregon, “Growing Oregon’s Biogas Industry.” The Climate Trust was also funded by the Bullitt Foundation for our coordinated e? orts to strengthen Washington’s Renewable Portfolio Standard under Initiative 937 (I-937) as it impacts the ability to fi nance important biogas projects. The Climate Trust continued to grow fi nancing for dairy biodigester projects; helping to improve manure management systems that result in lower costs for dairies and reduced environmental impacts. A new digester project at the Lochmead dairy with partner Revolution Energy Solutions reached commercial operation. Another project with partner Farm Power Northwest at their Rexville facility completed their fi rst issuance of Climate Action Reserve credits in 2011. These projects transform methane generated by manure from a combined 2,725 dairy cows into renewable electricity.Colorado Carbon Fund Finances Clean EnergyThe Climate Trust retired 20,518 carbon credits from the Larimer Landfi ll Methane Destruction Project; one of the fi rst certifi ed carbon reduction projects in Colorado. This project continues to prevent methane from reaching the atmosphere – the equivalent of removing over 4,000 cars from the road each year. There are four community carbon mitigation projects currently operating in Colorado, including two involving solar hot water thanks to the Colorado Carbon Fund. The City of Steamboat Springs project installed two fl at plate solar collectors on the roof of their Community Center, to assist in preparing some 6,000 meals for senior citizens each year. The City of Boulder signed a contract to install solar collectors at two recreation centers with signifi cant heating requirements; a project expected to reduce natural gas consumption by more than 40%.Climate Service ExpertiseThis year several businesses have relied on services provided by The Climate Trust, and built over our 14 years of operation, to achieve their climate goals. We work with clients who require support to meet compliance or voluntary goals and we provide technical carbon expertise and access to fi nancing across a number of sectors. This year, The Climate Trust completed a groundbreaking report for the Electric Power Research Institute examining approaches to aggregate carbon projects to expand deployment and reduce project costs. We also implemented a comprehensive Forestry Feasibility Study within the Southeast United States.FACING PAGE: We work with biogas project developers to provide a low risk pathway to delivering monetary value to their project, in addition to climate benefits.“We appreciate working with The “We appreciate working with The Climate Trust on key carbon market Climate Trust on key carbon market topics such as o? set project aggregation topics such as o? set project aggregation and new protocols in grassland and new protocols in grassland protection and livestock management. protection and livestock management. As ACR expands its e? orts in the As ACR expands its e? orts in the California compliance market, we look California compliance market, we look forward to working with The Climate forward to working with The Climate Trust to meet the needs of a scalable Trust to meet the needs of a scalable compliance market.”compliance market.”—John Kadyszewski, John Kadyszewski, Director, American Carbon RegistryDirector, American Carbon RegistrySupporting farmers’ capabilities to increase soil carbon, while Supporting farmers’ capabilities to increase soil carbon, while enhancing soil quality and protecting long-term productivity.enhancing soil quality and protecting long-term productivity.The Climate Trust 2011 Annual Report | 6“Carbon Market Investment Criteria for Biochar Projects.” This cutt ing edge assessment of biochar was conducted by The Climate Trust to determine its appropriateness as a carbon sequestration mitigation project. Biochar is a charcoal-like substance that improves soil function and increases soil carbon. This report describes what types of biochar projects can most readily qualify as high-quality carbon projects that have potential to att ract carbon fi nancing.In order to swiftly reduce emissions over the next few years, The Climate Trust is pioneering “innovation models,” or cutt ing-edge initiatives that reduce greenhouse gas emissions, channel fi nancing from a variety of sources for project replication, and inspire implementation of practical climate-related policies across the United States. By focusing our investments on projects with strong co-benefi ts, we aim to att ract socially and environmentally responsible fi nancial partners in exciting and often untapped arenas.Biogas | We have targeted the biogas sector as a primary focus due to the potential to scale-up solutions rapidly. Biogas projects o? er a host of benefi cial revenue streams, from improving the economic and environmental performance of dairies, to clean energy, organic fertilizer, and diverting waste from landfi lls. Furthermore, there is a growing demand for biogas carbon credits in compliance and voluntary carbon markets. We work diligently with project developers to consistently deliver environmentally sound results and sustainable project fi nancing. The Climate Trust supported a biogas project in Mount Vernon, Washington that exceeded expectations in 2011 by delivering more emission reductions than anticipated. The pipeline of projects in this sector will continue to expand with multiple partners requesting services and fi nancing for 2012.Nutrient Management | Nearly three-quarters of U.S. nitrous oxide emissions can be att ributed to the agriculture sector. Optimizing the application of fertilizer, a process known as “nutrient management,” is a simple process that can reduce greenhouse gases and contamination of waterways, while also protecting crop productivity and profi tability. The Climate Trust is currently working with partners in the Midwest and Northwest on improving nutrient management practices. By developing pilot projects to spur carbon investment, we aim to provide a fi nancial incentive for farmers to adopt and maintain improved nutrient management methods that are environmentally and fi nancially sound. To this end, The Fertilizer Institute, Camco, The Climate Trust and other partners will be enrolling up to 30,000 acres over the next three years to test and analyze nutrient management improvements in the Midwest.Forestry | Implementation of sustainable land management practices has the potential to increase stored carbon, provide habitat for a rich diversity of fl ora and fauna, and enhance recreational opportunities in local communities. The Climate Trust’s forestry team is working to expand our support and fi nancing to U.S. forestry projects that have the potential to increase carbon sequestration working with land trusts, private owners and timber management companies. In 2011, we completed a Forestry Feasibility Study in the Southeast, and we assisted landowners with technical preparation and fi nancial valuation of their carbon assets.Soil Carbon Sequestration | Soils provide the largest terrestrial store of carbon on Earth, with twice the carbon stored in shallow soil than in all the vegetation aboveground. Unfortunately, the most fi nancially viable use of land often favors increasing development, leading to loss of habitat for native species, valuable soil carbon and an estimated 35 million tons of greenhouse gas emissions annually in the U.S. The Climate Trust is currently collaborating with Ducks Unlimited to develop and apply a new Avoided Grasslands Conversion methodology across the Northern Great Plains – an area where more than 770,000 acres of grasslands were converted to cropland between 1997 and 2007. Financial incentives will help preserve 50,000 acres of grasslands across the Prairie Pothole Region, and provide economic benefi ts to around 100 landowners.Innovation Across Sectors Drives Innovation Across Sectors Drives Strong Climate LeadershipStrong Climate Leadership Soil CarbonSequestration““CCCCarrbbonnn Maarkrketet InInnnveeestmmmennt Criteriria fofofor BBBBioocchaaar PProjojeectsts.”.TTThiiss cuuuttiinngg edge asseessmmennnt oof bbbiooocchaar wwas conducttedd byyy Thhhe CClilimate Trust to deeeteerrrmminne its appropriateennese sssasass a caarbbon sequestration mmmititiigaatition project. Biocharr iss aaa chhhaarccoal-like substance thhaat iiimppprrovves soil function and iincccreeaases soil carbon. This rreppoop rtrt describes what typesofff bbioochar projects can most reeeaddiily qualify as high-qualittyy caaarbboon projects that havepoottenntial to att ract carbonfi finaanncing.SSSoilll CCaarrbboonnSSSeqqquueestrattiioonnFACING PAGE: The Climate Trust is the first organization in the nation to administer a compliance carbon program, having been the trusted administrator of Oregon’s Carbon Dioxide Standard for 14 years. “We are excited to deepen our partnership with The Climate Trust to “We are excited to deepen our partnership with The Climate Trust to implement our common vision to conserve native grasslands in the Prairie implement our common vision to conserve native grasslands in the Prairie Pothole Region of North and South Dakota. Ranchers will receive carbon Pothole Region of North and South Dakota. Ranchers will receive carbon incentives for sustaining carbon storage and conserving habitat for waterfowl incentives for sustaining carbon storage and conserving habitat for waterfowl and other wildlife on their working lands.”and other wildlife on their working lands.”The most financially viable use of land often favors development, The most financially viable use of land often favors development, leading to the loss of remaining grasslands. Providing incentives to leading to the loss of remaining grasslands. Providing incentives to prevent this conversion increases the productive carbon stored in soil.prevent this conversion increases the productive carbon stored in soil.—Jim Ringelman, Jim Ringelman, Ph.D., Director of Ph.D., Director of Conservation Programs-Conservation Programs-Dakotas and Montana, Dakotas and Montana, Ducks Unlimited Inc.Ducks Unlimited Inc.The Climate Trust 2011 Annual Report | 8World’s First Avoided Grassland Conversion Methodology. Grassland conversion is primarily driven by unbalanced economics that favor conversion over conservation. Through our partnership, The Climate Trust and Ducks Unlimited aim to address this issue by creating economic incentives to promote conservation. Our project goal is to enable rural landowners to permanently protect their grasslands by providing fi nancial incentives for environmental credits. In order to meet this goal, we are establishing an environmental credit accounting methodology to quantify the climate benefi ts of grassland preservation. This will result in the fi rst scientifi cally-robust Avoided Grassland Conversion greenhouse gas accounting methodology recognized by leading standards bodies.Conserving Native GrasslandsOur Porfolio of ProjectsOur Porfolio of ProjectsIn 2011, The Climate Trust continued to expand our project portfolio and to increase the delivery of credits from our portfolio. The credits under contract increased to 3,006,463 tCO2e, while the credits retired or delivered reached 987,756 tCO2e in 2011. The mix of sectors in the portfolio was broadened with a focus on California compliant credits from livestock biogas projects and the addition of an avoided grassland conversion project. Moving forward, we expect to increase the percentage of California compliant projects, add to the credits retired or delivered, and enhance the types of innovative projects included in the portfolio.Energy Efficiency46%Material Substitution27%Material Substitution14%Forestry & land-Use22%Energy Efficiency26%Biogas & Waste17%Transportation18%Biogas & Waste5%RenewableEnergy4%Transportation10%Renewable Energy11%Total Credits Contracted Credits Retired or Delivered2011 Roseburg Landfill GasOak Lea 2010 LochmeadLynden2009 RexvilleWhitesides DairyLarimer Landfil GasCool Climate Concrete 2 2007 Montana Fuels for SchoolsOSU CogenerationBiotactics Geothermal Heating2005-06 JCI Duluth Steam Plan RetrofitShorepower Truck Stop Electrification 2004 Cool Climate ConcreteBlue Heron Energy Efficiency2002 Ecuadorian Rainforest RestorationDeschutes Riparian ReforestationPortland Building Efficiency ProgramTraffic Signal Optimization 2001 Internet-Based Carpool MatchingPreservation of a Native NW ForestInnovative Wind FinancingTotal Credits Contracted: 3,006,463 tCO2eTotal Credits Retired or Delivered: 987,756 tCO2ePROJECT PORTFOLIOPROJECT PORTFOLIOFACING PAGE: In the Prairie Pothole Region of Montana, North Dakota and South Dakota, annual losses of native grasslands have averaged approximately 50,000 acres per year since 2007.“The Bank and The Climate “The Bank and The Climate Trust have shared values that Trust have shared values that include encouraging social and include encouraging social and environmental change through environmental change through our impact investments in Oregon, our impact investments in Oregon, Washington and California Washington and California communities. We are proud to share communities. We are proud to share a common mission that is focused on a common mission that is focused on sustainable solutions that endure.”sustainable solutions that endure.”—Kat Taylor, Kat Taylor, Board of Directors, Board of Directors, One Pacifi c Coast BankOne Pacifi c Coast BankThis charcoal-like substance increases long-term storage of carbon in This charcoal-like substance increases long-term storage of carbon in soil and improves soil function and water retention characteristics.soil and improves soil function and water retention characteristics.Initiatives that DeliverInitiatives that DeliverSince our start in 1997, The Climate Trust has managed over $18 million in carbon fi nancing provided to greenhouse gas emission reduction projects. The Oregon Program has built a strong legacy of innovation that delivers results for our partners and the environment year after year. The Climate Trust has been successful expanding beyond the Oregon Program by creating customized carbon portfolios such as NW Natural Smart Energy and the Colorado Carbon Fund.Oregon Program Utilities have relied on The Climate Trust to fi nance and e? ectively manage numerous greenhouse gas reduction projects in eight di? erent sectors. The Climate Trust is responsible for managing carbon funds; originating, contracting, and managing carbon projects, and registering and retiring carbon credits on behalf of regulated utilities. The Oregon Program completed fi nancing for the fi rst methane reduction biogas project in 2011, and is actively funding innovative projects in the forestry, agriculture and transportation sectors that meet high quality standards.NW Natural Smart EnergySince 2007, The Climate Trust’s innovative partnership has been expanding with NW Natural Smart Energy™, a voluntary carbon program that allows customers to o? set the emissions from their natural gas. The program focuses investments in biogas projects, in which the methane from cow manure and other organic waste is captured and turned into energy. The successful program has enrolled over 13,500 residential and commercial customers, and invested in four projects in Oregon and Washington that are anticipated to deliver more than 135,000 tons of carbon credits.Colorado Carbon FundThe Climate Trust has grown the Colorado Carbon Fund (CCF) in partnership with the Colorado Governor’s Energy O? ce. The CCF is the fi rst and only state-sponsored voluntary carbon program in the U.S., that has helped over 2,000 individuals, business owners and event planners measure and reduce their carbon footprint. CCF is currently operating four emission reduction projects in the state of Colorado, and has retired credits from the Larimer Landfi ll project. Through the generous support of our donors, we have been able to fund several projects in 2011, including the installation of solar hot water systems at a community center in Steamboat Springs and a public recreation center in Boulder that save communities’ money on their energy bills.Rural Farms and Climate Change InitiativeThe objective of the Rural Farms and Climate Change Initiative is to create economic incentives for farmers and ranchers to engage in sustainable ‘climate friendly’ agriculture, protecting the environment and enhancing the quality of life for rural communities. Improving the sustainability of operations is only the fi rst step; we also work to expand farmer outreach and education to replicate these sustainable practices by sharing ‘success stories’ from leading early adopters. Innovative practices that we will advance through this initiative include improved nutrient and rangeland management, avoided grassland conversion, use of bio-fertilizers, biochar, and new dairy biogas/digester facilities. In 2011, approximately 3,000 people were directly impacted by one of the seven (7) Rural Farms and Climate Change Initiative projects, with 5,000 more learning about activities through traditional media outlets.Potential of a U.S. Market for Biochar. The Climate Trust is working with partners to demonstrate the potential large-scale impact of biochar on increasing soil carbon sequestration. Biochar’s ability to deliver measurable agricultural and environmental benefi ts is supported by existing scientifi c research; however, there is no market for biochar and many questions remain. With funding from the Blue Moon Fund and collaboration with organizations such as the International Biochar Initiative, The Climate Trust is working to bridge the gap between scientifi c study and the commercialization of biochar; the potential agricultural and environmental impacts could be very signifi cant in the U.S. and beyond.The Climate Trust 2011 Annual Report | 10FACING PAGE: Biochar increases soil carbon sequestration and enhances some of the productive properties of degraded agricultural land.BiocharPPooteteeenttiiaial off aaa UUU.S.S.S. .MMaaaarkeetet fororor Biocharrr...TThhheee ClClliimatatate Trusustt is wwwooorkkiining wwwithh partnerrs s to ddedeemomoonsstttrattee the e popotenttiai lllaaarggee-scccalee immpact of fbbbbioccchaaar oon iincreasing ssoilill caaarbobonn sequestrationn. 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WWWiiithh ffunding from the Blue MMoooonn Fund and collaborationn wwiiithh oorganizations suchasss thhee International Biiiocchhar Initiative, The Clllimmmate Trust is working tooo bbriidge the gap betweenscccieenntifi c study and thecooommmmercialization of biochar; thhhe ppotential agricultural and ennnvvirronmental impacts couldbbeee vvery signifi cant in the U.S. aannnd bbeyond.FAAAACINNNG PPPAGAA E:E: Biocharr iinccccreaasses soss il cararbobon seseqqququessttrt atiooonnn and enhaaanncess soommemee of f tht e prrrododo ucctititivvve pprp ooppeeertiesss of degraded aagga riricuuuultl uralall lland.BBiiioocchhaarr“By utilizing best management “By utilizing best management practices, farmers are able to achieve practices, farmers are able to achieve sustainable agricultural production sustainable agricultural production and address environmental impacts. and address environmental impacts. The Fertilizer Institute’s partnership The Fertilizer Institute’s partnership with The Climate Trust allows us with The Climate Trust allows us to investigate additional incentives to investigate additional incentives for farmers to embrace 4R Nutrient for farmers to embrace 4R Nutrient Stewardship.”Stewardship.”—Lara Moody, Lara Moody, Director of Stewardship Programs, Director of Stewardship Programs, The Fertilizer InstituteThe Fertilizer InstituteWorking with farmers to optimize the application of nutrients Working with farmers to optimize the application of nutrients protects productivity, reduces costs, and provides a tool to protects productivity, reduces costs, and provides a tool to reduce contamination of waterways.reduce contamination of waterways.Statement of Financial PositionStatement of Financial PositionThe fi nancial health of The Climate Trust improved in 2011 through e? ective cost management and improvements in revenue generation. The 2011 fi nancial audit results provided by our auditors was clean and without exception. The 2012 plan includes a focus on growing revenue from grants, contributions, technical services and contract fees.REVENUES 2011 2010 2009Carbon contract revenue $863,851 $1,079,355 $2,665,387Other contract revenue $277,077 $324,862 $304,760Grants and contributions $54,766 $70,125 $68,818Other income including investments $650,782 $318,657 $323,737TOTAL REVENUE $1,846,476 $1,792,999 $3,362,702EXPENSES 2011 2010 2009Program services $1,274,147 $1,483,269 $3,174,134Management and general $245,664 $516,837 $493,780Development $190,986 $74,078 $59,053TOTAL EXPENSES $1,710,797 $2,074,184 $3,726,967CHANGE IN NET ASSETS $135,679 ($281,185) ($364,265)BEGINNING ASSETS $12,956,602 $13,914,871 $14,292,197ENDING ASSETS $13,286,316 $12,956,602 $13,914,8712011 Revenues 2011 ExpensesThe Climate Trust 2011 Annual Report | 12Implementing Best Practices. The nutrient management program was created with support from the USDA to champion widespread adoption of bett er nitrogen management practices for landowners. The program, which is a partnership with The Fertilizer Institute, Camco and many others, o? ers a science-based approach for farmers to implement best nutrient management practices that reduce costs, protect yield, provide incentives, and improve environmental results. Farmers who join the program agree to share data related to fertilizer use and practices with our team’s experts, and will receive a customized farm analysis helping them make an informed decision on the merits of implementing fertilizer best management practices. In addition, the farmers have access to increased incentives from the USDA and environmental services payments when they reduce greenhouse gas emissions.FACING PAGE: The “4Rs” of nutrient management ensure that crops receive nutrients from the Right Source, at the Right Rate, at the Right Time, and with the Right Placement.Nutrient ManagementGrants & Contributions3%Carbon Contract Revenue 47%Other IncomeIncluding Investments 35%ProgramServices 75%Management& General 14%Development 11%Other ContractRevenue 15%Sustainable land management activities provide vital habitat for flora Sustainable land management activities provide vital habitat for flora and fauna, benefit water quality, increase stored carbon, and enhance and fauna, benefit water quality, increase stored carbon, and enhance recreational opportunities for the enjoyment of all.recreational opportunities for the enjoyment of all.“Our vision to safeguard the natural environment through responsible actions is one shared by The Climate Trust, and exemplifi ed in their e? orts to educate policy makers and business leaders on practical improvements to Oregon’s Carbon Dioxide Standard.”—Denis Hayes, President, Bullitt FoundationForestryFunders, Clients, Board of Funders, Clients, Board of Directors and StaffDirectors and StaffThe Climate Trust 2011 Annual Report | 14Looking Forward. Climate change is a? ecting the planet faster than earlier models predicted and every community is already experiencing some level of climate disruption. Unfortunately, the world may be committ ed to irreversible, expensive and dangerous climate change levels by 2017 if business as usual continues. This challenge can feel daunting to many stakeholders who resist change, so The Climate Trust will work with many partners to highlight successful examples that can scale-up using diverse communications channels. We will also work to highlight the much higher cost of inaction to our cities, coastal, and rural communities. Our communications will break down how mitigation programs can ultimately increase the resiliency and security of communities by deploying solutions in the agriculture, forestry, renewable energy, energy e? ciency and transportation sectors.Climate Services ClientsAmerican National PowerAvista CorporationCalpineCity of Klamath FallsColorado Governor’s Energy O? ceColumbia BiogasDucks UnlimitedElectric Power Research InstituteEnergy Trust of OregonIberdrola RenewablesInvenergyMeyer Memorial TrustNW NaturalPacifi CorpPort Authority of New York & New JerseyPortland General ElectricThe Fertilizer Institute (USDA)Washington Department of CommerceNational Board of DirectorsLaura Beane, Board Chair and Director Regional Market Structure & Policy, Iberdrola Renewables Sean Penrith, Board Vice Chair and Executive Director, Earth Advantage InstituteNeal Sacon, Board Treasurer and Senior Vice President & CFO, United Fund Advisors Arya Behbehani, Board Secretary and Manager of Environmental Services, Portland General Electric Bett ina von Hagen, Board Member and CEO, Ecotrust Forest Management Inc. Stephen Hall, Board Member and Partner, Stoel Rives LLPWinston Hickox, Board Member and Partner, California Strategies, LLC Robin Smutny-Jones, Board Member and Assistant Executive Director, California Energy CommissionBen Vitale, Board Member and President, The Climate TrustNon-Voting Certificate Holder AppointeesTim Carlberg, Project Manager, Avista Corp. Rick Colgan, Director Asset Management, Calpine Martin Doern, Federal Government A? airs Manager, Portland General ElectricPhilanthropic SupportBullitt FoundationBiophysical SocietyKongsgaard-Goldman FoundationFidelity Charitable Gift FundMcKenzie River Gathering FoundationLeadership CircleThe following are individuals who contributed $500 or more, and organizations that contributed $1,000 or more to support The Climate Trust.Individuals:Nicholas Corlett Ben and Ana VitaleOver $8,500 in anonymous contributionsOrganizations:Coastal Estuarine Research FederationAlbina Community BankCarnegie Corporation of New York, Matching Gifts ProgramOregon Board of DirectorsLaura Beane, Board Chair & Treasurer and Director Regional Market Structure and Policy, Iberdrola Renewables Sean Penrith, Board Vice Chair and Executive Director, Earth Advantage InstituteArya Behbehani, Board Secretary and Manager of Environmental Services, Portland General ElectricBett ina von Hagen, Board Member and CEO, Ecotrust Forest Management Inc. Stephen Hall, Board Member and Partner, Stoel Rives LLPTrey Senn, Board Member and Executive Director, Klamath County Economic Development AssociationStaffBen Vitale, PresidentRichard Kempka, VP of Business DevelopmentDavid Diaz, Senior Portfolio AssociateKavita Heyn, Business Development ManagerMusa Jaman, O? ce & Benefi ts ManagerErica Keeley, Senior Program ManagerKasey Krifk a, Marketing & Communications ManagerJohn Lucas, Sta? AccountantCarrina Waneka, Colorado Carbon Fund Business Outreach AssociatePeter Weisberg, Senior Project AnalystSheldon Zakreski, Senior Program ManagerFoooreessttrryyyLLLLoookokkkinnggg Forwrwrwarddd.CCClliimmmmate e cchannnge is a? ectttinii gthhee pplanannet fffaaster ththanan eearrrlrlierr r mooodelss predicttede aannnndd eevverrryyy coommmununitity y iss aalllrreaaddy exppeririencing ssommo eleeeeveelll offf cliimamate disruptioion.. UUUUnffofortttunnatteely, the worldd mmmmaayy bbbe ccomommitt ed toiiirreeeveeerssiibblle, expensive and dddaanngggerrouus climate change levvvellls bbyy 2017 if business asss uussuuall continues. This chhhalllleengnge can feel dauntingtooo mmmaanny stakeholders who rreesiiistt cchange, so The Climate TTTruuustt wwill work with many ppparrrtnneers to highlight successfuul eeexaaammpples that can scale-up uuusiini gg diverse communicationss ccchaaannnnels. We will also workttto hhiigghlight the much higher cccossst of inaction to our cities, cccoaaastaal, and rural communitiess.OOOuuur coommunications will bbbreeae kk down how mitigationppprooggo raams can ultimately ininncrreeasse the resiliency andsseecuuurritty of communities by dddeppplooyying solutions in the agggriiicuultture, forestry, renewabblee ennnerrrgyy, energy e? ciency anddtraana ssspporrtation sectors.FACING PAGE: Implementation and financing of sustainable land management practices can help cut back on human factors that can affect forests, wildlife and our environment. facebook.com/TheClimateTrust twitter.com/climatetrustThe Climate Trust | 65 SW Yamhill Street, Suite 400, Portland, OR 97204 | 503.238.1915 | www.climatetrust.org