Press Release: ClearCarbon and GIC Group Launch New Approach to Value Carbon in Agriculture

FOR IMMEDIATE RELEASE -- June 30, 2009 -- Alexandria, Va.

Contact: Dawson Williams at GIC Group, (703) 684-1366, or Lauren Cole at ClearCarbon, (571) 303-2244

In a new white paper, entitled "The New Roadmap for Measuring & Valuing Carbon in the Agribusiness Sector", ClearCarbon and GIC Group (GIC) argue that a sectoral approach is needed to effectively measure and value the greenhouse gas (GHG) emissions associated with the agribusiness industry. The authors contend that the current framework for looking at agricultural emissions underestimates the carbon reduction opportunities in the industry. To date, the focus has been on production agriculture, which fails to address the equally important secondary industries, such as fertilizer manufacturing, food and feed processing, biofuels, pulp and paper producers, and seed companies.

According to ClearCarbon and GIC, production agriculture and related secondary industries account for between 10 and 35 percent of developing and developed countries’ emissions. “Treating production agriculture and related secondary industries as two separate entities ignores the interrelated and global nature of agribusiness,” said Dawson Williams, director of GIC’s Carbon Advisory Services. “Moreover, it also substantially underestimates the industry’s potential for mitigating GHG emissions.”

The new methodology proposed by ClearCarbon and GIC combines rigorous measurement of carbon emissions and identification of proven reduction strategies that go beyond business as usual (BAU). It also includes an independent carbon price discovery instrument and valuation tool that captures the financial risks and benefits associated with a firm’s carbon footprint.

“With this new protocol, we are taking a holistic view of how carbon impacts financial due diligence,” said Kyle Tanger, CEO and President of ClearCarbon. "We can make the due diligence process more accurate by effectively incorporating carbon assets and liabilities. In essence, helping companies make better financial decisions in a carbon-constrained economy.”

GIC developed the Agriculture Carbon Index (GIC-ACI) to provide the agribusiness industry with a global pricing instrument for valuing carbon emissions and offsets associated with the sector. This financial tool combined with ClearCarbon’s comprehensive approach to measuring footprints and mitigating emissions offers a number of applications for agribusiness firms and biotechnology companies. With the help of the new approach, individual firms can now factor in the carbon footprint of a potential acquisition or merger target. Investors in carbon offset projects can also utilize the index as a hedge strategy to manage the risk of potential fluctuations in the carbon price. Additionally, biotechnologies firms with a promising carbon mitigation technology for a particular agriculture sub-sector, such as the livestock industry, can now measure its probable impact and value its credit earning and/or licensing potential using the index and ClearCarbon’s footprint methodology. Further examples are discussed in the white paper: The New Roadmap for Measuring & Valuing Carbon in the Agribusiness Sector.

GIC recently launched a road show to present the index to perspective investors and financial institutions interested in the carbon market. GIC and ClearCarbon are also engaged in a roll-out of this new carbon finance model. Both organizations will be working with the U.S. Department of Agriculture’s Cooperative State Research, Education, and Extension Service to use this new approach to examine how different sectors of U.S. agriculture in different regions will likely be impacted by a national cap and trade system.

About GIC Group

An international financial advisory and agribusiness consulting company in Alexandria, Virginia, GIC Group has developed a carbon advisory practice to advise and consult agribusiness and biotech firms on carbon emissions, regulatory developments and financial opportunities in the marketplace. GIC Group integrates experience and strength in research, analysis, and marketing with financial services and asset management. We offer the agribusiness and biotechnology industries a complete skill set to provide access to global and domestic markets, add value to current agribusiness activities, and identify new business opportunities. The GIC Ag Carbon Index (GIC-ACI) will be a tool for companies to estimate the future price of carbon in the agribusiness industry. For more information visit www.gicgroup.com.

About ClearCarbon

A full-service carbon consulting firm specializing in carbon measurement, management and monetization, ClearCarbon helps clients turn risk into opportunity by reducing costs and increasing profitability, while lowering climate impacts. Our staff’s more than 40 years of experience in carbon emissions assessment, supply chain analysis and data management helps us guide our clients toward solutions that deliver a substantial return on investment. Our offerings include GHG inventories, product lifecycle analyses, event footprints, carbon reduction strategies, public disclosure reporting, regulatory advising and industry-specific measurements such as soil assessments. We also offer leading software applications that make accurately collecting, calculating and managing carbon data straightforward and systematic. ClearCarbon is a leader in carbon assessment and management because our record of saving – and making – our customers money encourages long term prosperity and growth in a carbon-constrained world. To learn more, visit www.clearcarboninc.com.