Blake Lapthorn were pleased to welcome Edward Hanrahan as guest speaker as it's green breakfast on 2 November in Oxford.

1. C L I M A T E C A R E - CLIMATE F I N A N C E A N D D E V E L O P M E N T P R O J E C T S
Investment in large scale Climate and Development finance projects
STRICTLY PRIVATE AND CONFIDENTIAL

2. ClimateCare – Executive Summary
 ClimateCare was established in 1997 and is one of the longest established and leading
environment-focused organisations in the carbon market. Corporate offsetting
programmes
 We develop innovative financial models to catalyse investment in Climate and Social Development
projects in LDCs – including and beyond existing carbon market frameworks. Sourcing carbon credits
 ClimateCare develops and consults on Emission Reduction projects in Sub-Saharan Africa and
throughout the world for both the compliance and voluntary carbon markets as well as the
Project Development
newer emergent Climate and Development finance funds. Our focus is on innovation and
sustainable development. Every project we develop is designed to contribute towards
fulfilling the Millennium Development Goals. (MDGs) Consulting
 ClimateCare originates and sources carbon credits on behalf of large corporates, NGOs, and
sovereigns. In addition, we manage voluntary offset schemes for organisations and sell offsets to
individuals. We exclusively market EcoSecurities’ and J.P. Morgan’s VERs as well as our own.

3. Recognition
Recognised as a Leading Carbon Offset Provider and Project Developer
 2011 – Nominated ‘Best Offset Provider’ –TreeHugger Best of Green Awards
 2010 - The ENDS Guide to Carbon Offsets – rated as top provider
 2010 - Which? – rated as a top provider in all categories
 2009 – Rated “Best Offset Retailer” by Environmental Finance
 2009 - Top rated by DSF Pembina review of carbon providers
A Selection of Clients
OVERVIEW OF CLIMATECARE
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4. Corporate Objectives
We achieve multiple investment goals through ClimateCare project opportunities
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5. Introduction to ClimateCare
 ClimateCare was sold to J.P. Morgan in 2008 and operated as part of the bank’s Environmental Markets division until
August 2011 when it was taken independent in an MBO.
 Beyond ‘voluntary carbon’ - ClimateCare is developing and implementing innovative Climate and Development Finance
models to deliver projects that both reduce emissions and deliver against MDGs – providing new and additional
revenues to those who need it most in tackling the effects of climate change.
 We believe that this is an exciting time for mobilising public and private investment to tackle pressing social,
climate and poverty issues. We have developed a number of models which make investment attractive to
private sector market entrants and, with over 14 years’ experience developing projects on the ground in the
LDCs, we are uniquely placed to mitigate the risk in project selection and implementation.
 The business continues to follow the same stringent project procurement and risk management processes developed
whilst at J.P. Morgan together with the same robust project procedures we always have..
 Our projects sit on the developing nexus between private sector finance and the development/aid sector and
we believe that they represent an opportunity to achieve both Climate and Development (MDG)
goals/outcomes at scale, whilst returning profits commensurate with normal private sector returns.
 We have developed a number of models which make investment attractive to private sector market entrants with the
bulk of the upfront finance being delivered by Public or Third Sector finance (Devpt Banks, Multilateral Donors,
Foundations) on a revolving fund basis.
 Our 12 years experience of delivering projects on the ground in LDCs has given us ‘best in class’ project selection,
efficiency and risk mitigation capabilities, which together with a proprietary Delivery Risk Mechanism for assessing
project viability means that we can deploy investment funds rapidly and efficiently to achieve the twin aims of social
development and ‘profit for purpose’.

6. The story so far…
• We have now funded over 11 million tonnes of emissions
reductions through our projects .
• Our stoves programme has distributed 1.6million stoves in developing
countries , easing pressure on deforestation, reducing indoor air pollution
and improving the health and economic circumstances of over 7.5 million
people – particularly women and children – helping tackle what is now the Developing World’s
largest killer – killing more people each year than Malaria.
• Our new programme financing Clean Water has so far provided 4 million
people with a free and sustainable way to access clean water.
• With our customers, we continue to develop and fund c 4million tonnes of Emission
Reductions each year and are now at the forefront of moving the carbon market to the next
stage - developing and implementing new financial structures :such as Revolving funds
and Social Impact Bonds etc…whilst funding substantial new communications around the
way that carbon finance can be used to achieve both environment and MDG goals

7. How did we deliver those results?
Through Carbon Offsetting.
Offset Inclusive Carbon Management
 When we conduct business we use energy and are responsible for carbon emissions being released into the atmosphere
 Carbon Offsets:
 are a reduction of carbon emissions on your behalf through funding of a project, most often in the developing world, which
reduces carbon emissions by an equivalent amount to those released by your business activity
 are a way to make verified emissions reductions at the lowest cost
 Provide REAL reductions for your activities/ those of your products
• Measure emissions activities and buy equivalent tonnes of offsets
• Fund emissions reduction projects with the money
OVERVIEW OF J.P. MORGAN CLIMATECARE AND CLIMATE CHANGE
• Verify the project reductions to check they match the emissions from the activity
Calculate
Offset Avoid
Reduce
Carbon reduction virtuous cycle –
Defra 2008
Why Offset? In Support of Offsetting
 “Reduce” and “Avoid” activities generally leave remaining emissions
 Offsets can get your business to zero carbon quickly…they are the only “it makes sense to get the biggest bang for your bucks, to
way to deal with your unavoidable emissions. identify the most cost-effective emissions reduction options
around the world…The atmosphere doesn't care where you
 Offsets buy the environment time for your business to become low reduce emissions as long as you reduce emissions.”
carbon - the environment & humanity need reductions to happen now - Yvo De Boer, United Nations Climate Chief
 Offsetting makes real reductions - making high volume of reductions
quickly
 It is cost effective – by making a high number of reductions per £ spent
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8. Addressing ‘remaining emissions’
Example best practice emissions reduction strategy – 50% ABSOLUTE reduction by 2015
CARBON OFFSETTING IN THE CONTEXT OF AN OVERALL CARBON REDUCTION STRATEGY
Tonnes  Businesses are responsible for approx. 60% of total annual
100% global CO2 emissions and will therefore need to contribute
to the reductions necessary to avoid a catastrophic rise of
80% temperatures.
60% 5 year target  Leading businesses are now making significant public
commitments to reduce their impact
40% 50% reduction
 A leading public commitment targets an absolute reduction
20% Offset remaining Emissions in business emissions of 50% by 2020
0% 0 1 2 3 4 5  This is currently considered beyond best practice strategy for
internal emissions reductions
Time
How cumulative environmental impact shapes best practice carbon management strategies
Total reduction compared
25 Reduction profile  Even using this strategy, total cumulative CO2 emissions can
with constant baseline
Constant emissions remain very similar dependent on the timing of reductions
year emissions
Early planning + growth
20 -1%
Fixed annual  These cumulative emissions globally drive atmospheric CO2
Early wins -25% levels. The most effective climate change action therefore
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Emissions
reduces total cumulative emissions as much as possible in the
-41% short term by ensuring that the most cost-effective carbon
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reduction investments are made
5  A business looking to develop a robust strategy for carbon
management should undertake assessment of all internal and
0 external emissions reduction options and fund those that
2007
2008
2009
2010
2011
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2014
2015
2016
2017
2018
2019
2020
deliver maximum value to the company and benefit to
the environment
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9. VER vs CER pricing – Valuing
Development
Offset Price
Offset Standard Description of key factors affecting price Range2
(£/tonne)
 Rigor: Most stringent voluntary standard
 Reputation: Established by leading Non-Governmental Organizations
 Quality: Highest cost offsets €5.00 - €11.00
Gold Standard Verified  Liquidity: Limited
Emission Reduction (GS VER)  “Carbon Charisma”: High - requires broader sustainable development co-benefits
 Rigor: Stringent voluntary standard
 Reputation: A leading global standard for voluntary offsets
 Design: Process and procedures designed to enable large-scale projects €.5 - €6.00
Voluntary Carbon Standard  Project Eligibility: Prices range reflect variety of eligible project types
WHAT IS CARBON OFFSETTING?
(VCS 2007)  Liquidity: Moderate
Rigor: Stringent voluntary standard
Climate Action Reserve  Reputation: A leading standard for US based voluntary offsets
€2.00- €5.00
(CAR)  Design: Process and procedures designed to enable large-scale projects
 Liquidity: Limited
 Rigor: Less stringent offset standards produce skepticism
 Liquidity: Only exchange-traded voluntary product NO BID
Chicago Climate Exchange (CFI)  Reputation: Generally represents VER “floor price”
Offset Price
Compliance Instrument Description of key factors affecting price
Range1
Liquidity: Government issued allowances valid in European Union Emissions Trading
European Union Allowance Scheme €10.25
(EUA)
 Rigor: Regulatory standard defining offsets valid for compliance with
requirements of Kyoto Protocol
€6.74
Certified Emission Reduction  Reputation: The benchmark against which voluntary standards are measured
(CER)
1 EUA and CER commodity prices based on year to date trading range
2 VER price range affected by factors including: project type, vintage, volume, sustainability benefits, and geographical preferences
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10. So now what…
 Given that the Voluntary Carbon Market is doing a great job – but is just too small to make the impact needed…
 How do you make Compliance Carbon Markets work for the poor?
 You can use a blunt instrument – like restricting supply to LDCs
 Or you use a more refined financial instrument that recognises that Pro-Poor projects have two outputs - and by
placing a tangible, separate value on things other than carbon – and delivering that value for less than it currently
costs…– results only - basis.
 Increases the risk weighted return for investors
 Allows us to access the scale that Compliance Carbon Markets bring – whilst delivering the Sustainable Development
benefits that have been so highly prized in the Voluntary Carbon Market.
 Other benefits…
 Delivers on the age old problem of having public finance ‘leverage’ private finance
 Highly Extendable to NAMAs and other Climate Finance elements (Green Climate Funds etc…) as the payments are project based and ‘on
delivery’ only.
 Delivers access to the carbon markets for existing NGOs

11. ClimateCare Projects - Linking to
Millennium Development Goals
Every one of ClimateCare’s energy related development projects has a positive impact on the host country and
community. As can be seen from the table below, all reduce poverty by creating jobs and providing additional
energy and reduce reliance on fossil fuels, however ClimateCare’s more community focused projects also meet
other goals.
# Country Tech
1 Taiwan Wind   
2 Turkey Wind   
Energy Efficient
3 Uganda
Stoves      
Energy Efficient
4 Ghana
Cookstoves       
5 Argentina Biomass   
6 India Composting   
Energy Efficient
      
EXAMPLE PROJECT PORTFOLIOS
7 Cambodia
Stoves
Human power
8 India
water pumps     
9 India Biomass   
10 India Fuel Switch   
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12. ClimateCare - Alignment with the UN’s
Millennium Development Goals
Example: Zambia hydro project
Carbon Development
Increased income, reducing
Creating local jobs need for children to work
Reducing energy costs Bringing light for study in
the evenings
Reducing poverty Improved hospital facilities
Increasing education Reduced smoke from
opportunities kerosene avoidance
24 hour operation of the Increased time for study
local hospital Improved medical facilities
Improved post natal care Increased income
OVERVIEW OF CLIMATECARE
Replaced diesel generators
Involved local community
Reduce GHG emissions with partners from UK,
Improved air quality Germany, India
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13. Project Development and Consultancy
14 years experience in energy and development related projects
 ClimateCare has been at the forefront of energy & sustainable
development projects since 1997
 ClimateCare’s world leading experts pioneered the first clean cook
stove methodology to be approved by the Gold Standard
 Currently pioneering the development of water purification
methodologies/projects and programmes of activities
 Expertise covers both the voluntary and compliance carbon markets
 ClimateCare directly finances projects as well as facilitating both clients
and investors to become involved
 We are able to assist with existing investments that require delivery or
commercialisation assistance
Consulting services
 Experts in all aspects of carbon asset development for LDCs - financing, methodology, project
design, capacity building, management, monitoring
 Technical expertise on all carbon project types
 Strong NGO and donor experience and related project activities

14. PROJECT EXAMPLES
STRICTLY PRIVATE AND CONFIDENTIAL

15. Sub Saharan Africa – Water Filters
 Technology: Energy Efficiency
 Standard: GS VER applicant
 Vintage period: 20011 - 2018
 Location: Sub Saharan Africa
Project background
 In Africa more than 60% of the population are exposed to disease-bearing drinking water
 For the majority of people, the only option is to boil water to kill bacteria
 This is often ineffective (as water is not boiled for long enough) and places increased
pressure on the wood resource. In turn increasing GHG emissions and deforestation
Project Activity
 Water filter remove the need to boil water, improve quality and avoid GHG emissions
Link to the Millennium Development Goals (MDGs)
MDG Impacts
1 Reduces illness and mortalty – thereby inreasing working days and income
2 Safe drinking water prevents children from becoming ill so they can attend school
3 Saves time for women and girls, improving school attendance and self esteem
4 Reduces infant mortality and morbidity from diarrhoea
5 Clean water and reduced illness positively impacts maternal health
6 Healthier lives for the immunocompromised and reduced mortality
8 Provides access to developed world markets and expertise

16. India – Treadle Water Pumps
 Technology: Human Power
 Standard: Verified Carbon Standard (VCS)
 Vintage period: 2005 - 2010
 Location: India
Project background
 Diesel powered pumps are used to irrigate small-holdings across India. However, the
pumps are expensive and are usually hired for short periods, meaning that the fields have
to be flooded, wasting water and washing top soil away.
Project Activity
 Treadle Pumps are an alternative low-cost method of irrigation which use human power to
lift the water with a ‘stepping’ action. The pumps replace diesel driven pumps, saving CO 2,
improving agricultural yields and empowering the rural poor.
Link to the Millennium Development Goals (MDGs)
MDG Impacts
1 Increases disposable income, creates jobs, improves crop yields
2 Fathers are more present in the family relieving the pressure on children
3 Increased income helps girls education
7 Less topsoil is washed away and emissions are reduced
8 Provides access to developed world markets and expertise

17. Uganda - Efficient Cook Stoves
 Technology: Energy Efficiency
 Standard: GS VER
 Vintage period: 2009 - 2014
 Location: Uganda
Project background
 Uganda has one of the highest deforestation rates in Africa
 More than 95% of Ugandans rely on fuel-wood for cooking
 In rural areas wood predominates, whilst in urban areas charcoal is used
Project Activity
 The project replaces rudimentary stoves or open fires with an efficient stove, known as the
Ugastove, that reduces charcoal consumption by 25% in turn reducing GHG emissions and
easing pressure on Uganda’s non-managed forests
Link to the Millennium Development Goals (MDGs)
MDG Impacts
1 Income related to stove sales. Reduces wood fuel cost, increases disposable income
Increased income increases access to education for girls, more security for women’s
2,3
businesses
4,5 Reduces indoor smoke pollution (a killer of millions each year)
7 Reduces pressure on deforestation as less wood fuel/charcoal is required for cooking
8 Provides access to developed world markets and expertise

18. Ghana - Efficient Cook Stoves
 Technology: Energy Efficiency
 Standard: GS VER
 Vintage period: 2009 - 2014
 Location: West Africa - Ghana
Project background
 Ghana has one of the highest deforestation rates in Africa
 Wood and charcoal provide more than 80% of Ghana’s domestic energy
 In rural areas wood predominates, whilst in urban areas charcoal is used by as many as
1.3 million households or 31% of all Ghanaian families
Project Activity
 The project replaces these coal pots with an efficient stove, known as the Gyapa, that
reduces charcoal consumption by 25% in turn reducing GHG emissions
Link to the Millennium Development Goals (MDGs)
MDG Impacts
1 Income related to stove sales. Reduced wood fuel cost, increases disposable income
3 Increased income helps girls education, more security for women’s businesses
4,5 Reduces indoor smoke pollution (a killer of millions each year)
7 Reduces deforestation as less wood fuel/charcoal is required for cooking
8 Provides access to developed world markets and expertise

19. THANK YOU – ANY QUESTIONS?
STRICTLY PRIVATE AND CONFIDENTIAL