Community Benefit Project Guidelines
The Colorado Carbon Fund welcomes carbon positive programs such as soil biosequestration through holistic land management, sustainable agriculture, and grazing, as well as more socially-oriented community engagement projects.
These projects do not have to be verified carbon offset projects, but they must address areas around social and economic equity, while having an element of carbon reduction. We believe that support should come from local Colorado-based projects where communities receive direct benefits from both the project and the reduction of carbon emissions.
Carbon Offset Project Guidelines
Colorado carbon offset projects must be registered with a verified carbon standard. They must also meet the following criteria to be considered for Colorado Carbon Fund support:
Local. All projects must be located in Colorado. Projects can be privately or publicly owned.
Additional. Project developers must demonstrate that selling emission reductions to Natural Capitalism Solutions somehow enables a project’s implementation and that without the opportunity to sell the project’s emission reductions the project would not occur. See our additionality standards for more details.
Direct. Projects must reduce emissions one or more of the six greenhouse gases (including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride). Projects must reduce emissions at the site where they are implemented by reducing or displacing the use of fossil fuels. Projects must also demonstrate clear ownership of the emissions reductions, therefore projects that reduce or displace grid electricity are not considered because they result in indirect emission reductions which may cause ownership and double counting concerns.
Scale. Projects must reduce at least 40,000 metric tons of CO2-equivalents over the contract term. Similar project types can be aggregated to meet the size requirement. For information and guidance on calculating emission reductions go to the baseline page.
Although the Colorado Carbon Fund is interested in a variety of clean technologies, we have a preference for projects related to the following:
- New methodologies in carbon reduction (verification protocol that currently do not exist)
- Soil Carbon
- Biosequestration (e.g. Holistic Land Management)
- Grasslands Preservation
- Anaerobic digestion
Quick Start Guide to Submitting Proposals
Step 1: Submit an initial proposal. In this three-page form, project developers request an amount of funding and quantify the project’s greenhouse gas reductions.
Step 2: Submit a detailed proposal. Pending approval, in this formal proposal, project developers describe the project’s timeline, financing, and major risks, and attach a Pro Forma.
Step 3: Negotiate a contract. For projects that pass our due diligence, an Emission Reduction Purchase Agreement will be negotiated with project developers. This contract vehicle establishes such key terms as ownership of the project’s emission reductions, price, the timing of the payment, and provisions in case the project underperforms.
Additional. Project developers must demonstrate that selling emission reductions to The Climate Trust somehow enables a project’s implementation and that without the opportunity to sell the project’s emission reductions the project would not occur.
Scale: Projects should reduce at least 5,000 metric tons of carbon dioxide equivalents over the contract term. We will consider smaller volume projects on a case by case basis.
Energy: Projects must reduce emissions through energy-related measures such as avoidance of methane emissions, switching to renewables, or making efficiency improvements.
Direct: Projects must reduce emissions at the site where they are implemented by reducing or displacing the use of fossil fuels. Projects that result in grid-electricity reductions are not considered because they result in indirect emission reductions causing ownership and double counting concerns.
The Colorado Carbon Fund is dedicated to financing innovative projects that contribute to Colorado’s transition to a New Energy Economy and are not currently being funded by the rest of the renewable energy or carbon market.