Working Forest and Conservation

1. Working Forest and Conservation Presentation to MD Governor’s Forestry Commission

2. Working Forests- Three Core Strategies • Prevent the conversion of forestland to other uses • Maintain the economic reasons to keep forests as forests-a viable industry in MD • Increase public confidence in and support for sustainable forestry practices

3. TNC’s approach • Protecting forests is too big a task for any one group—we need to work together. • Success will require building a new tool kit of working forest easements, tax policy, conservation planning and incentives

4. Protecting Forests: Working forest easements • Parsonfield, Maine:10,000 acre working forest • Property up for development into 15 parcels • TNC partnered with private investor to buy the property. Investor gave TNC option to purchase an easement to buy time for us to raise $$ • TNC, working with state legacy program obtained the funds to purchase easement with donation from town and private fund raising- $2.5 m total. • Land protected from development but will remain in working forest • In four state area of NY, VT, NH, ME TNC has helped purchase 2.5 million acres of working forest easements • Cost ~$300 million w/ State/Federal providing close to $100 m, private investors providing over $100 m

5. Protecting Forests: State and Town Forests • Nash State Forest- NH 49,000 acres • Errol Town Forest NH 2,000 acres • Randolph Town Forest NH 6,000 acres • Properties funded by bond issues, private fundraising and forest legacy. All are managed as working forests

6. Supporting the Industry: Great Northern Paper

7. Supporting the Industry: Great Northern Paper • TNC purchases $50 m in GNP debt from other lender • Trades $14 m in debt for 41,000 acres of reserves • Provides company with a lower interest rate note in exchange for easement on 200,000 acres of key conservation land ($36 m,7 years @4%. 4% is currently the cost of TNC capital)

8. Supporting the Industry: Tax Credits • Federal New Market Tax Credits have been used to help private investors purchase forest land in exchange for conservation easements: • 5 projects totaling $129 m in tax credits linked to conservation on 1.5 million acres so far. MD has many counties eligible • NMTC used to refinance 2 paper mills (ME) and pallet manufacturer (NM) • Expanding MD’s state programs (current use, tradable tax deductions on gifts of easements - CO, VA)

9. Supporting the Industry: Ecosystem Services- Carbon markets • TNC has been major proponent of developing markets for carbon linked to protecting and restoring forests: • 6 projects in US and overseas- $35 m in investment by utilities to reduce greenhouse gases • Opportunity to work with NE governors to create regional market for greenhouse gases

10. Building public support: MA State Forests • Forest harvesting had ground to a halt in most state owned land due to public concern over harvesting • TNC in partnership with state help broker a new strategy • State designation of ‘ecological reserves” on about 20% of state lands • Certification of other state lands by third party programs • Early indications are that with proper controls, the public can accept long term forest management as a tool for public lands.

11. Building Public Support: Certification • TNC on boards of both FSC and SFI programs • The Maine example: Governors commitment to have 75% of its working forest certified lead to Time inc increasing paper purchases by 19%.

13. Conservation and Working Forests- Yes! • We can help each other • Build community commitment to protecting forests by proactive strategy of conservation and industry working together.