Objective: To concretely contribute to mitigation of climate change by reducing greenhouse gas emissions through carbon financing renewable energy projects that replace fossil-fuel energy sources. These projects will also assist in alleviating poverty as they were specifically chosen based on the benefits of rural electrification in Nigeria and in Native American land in the U.S.

Commitment: To offset the greenhouse gas emissions caused by the Clinton Global Initiative conference, including attendees’ travel.

Background: The practice of making a conference or event ‘carbon neutral’ is becoming more popular, with recent examples including the Democratic and Republican National Conventions and the 2002 Olympics in Salt Lake City. To do this, CGI will need to:

1. Calculate its GHG emissions;

2. Identify a supplier of offsets (i.e. projects that are reducing greenhouse gases from which CGI may purchase its reductions);

3. Ensure the supplier’s offsets are real, measurable, and transferable;

4. Sign a contract to buy the offsets; and

5. Arrange with experts to verify that the emission reductions occur.

We have identified two potential suppliers of offsets, Native Energy, and the Solar Electric Light Fund (SELF). Native Energy focuses on the financing of small-scale wind projects that are owned and operated by Native Americans in part through the selling of carbon offsets. SELF is dedicated to bringing solar energy to rural communities that are particularly in need. The offsets purchased by CGI come from a project in Nigeria, and the revenue from the sale will enable the further expansion of this project. Baker & McKenzie is providing pro bono legal services to negotiate CGI’s purchase of offsets from one or both of these suppliers. Andrew Shapiro, CEO of GreenOrder, has offered to calculate the GHG emissions caused by CGI. GreenOrder is an environmental consulting firm whose GHG clients include Pfizer and GE. Baker & McKenzie will draft and negotiate a binding letter of intent, followed by a contract on CGI’s behalf for the purchase of the necessary carbon offsets. Baker & McKenzie will also assist in the due diligence of the projects and coordinate with third party verifiers to work to ensure that the offsets are real and that CGI’s asset (the offsets) are created and delivered to CGI. Baker & McKenzie arguably has the preeminent global climate change practice in the world, and have conducted dozens of these types of transactions. They are, in fact, the outside counsel to the World Bank’s carbon funds (the World Bank manages over $800 million in fund assets of corporate and governmental fund participants for purchasing GHG reductions). The UN Development Program assisted in evaluating the technical merits of the proposed projects in Nigeria, including the degree to which they meet the Millennium Development Challenge goals and offer real greenhouse gas reductions.

Update:
March 2006:
Contracts with Native Energy and the Solar Electric Light Fund for purchasing greenhouse gas offsets were finalized, completing our process.