GLOBE-Net, September 17, 2012 - British
Columbia's carbon market is again in the news with the announcement
by ERA Carbon Offsets Ltd. ((TSX¬-V: ESR) that it has entered into
a non-binding letter of intent to acquire Offsetters Clean
Technology Inc. and Carbon Credit Corporation to create one of the
largest carbon project development groups in Canada.
The Company also announced plans to appoint Dr. James Tansey,
current CEO of Offsetters as the new ERA President and CEO subject
as part of the proposed deal. ERA's interim CEO Duncan Manson has
stepped down, though he will remain on the company's board of
Dr. Robert Falls, founder and Chairman of the Board of ERA,
stated, "We are extremely pleased to have the opportunity to
integrate three of Canada's leading offset project development
companies under one roof, beginning an anticipated consolidation of
the voluntary carbon business and creating the largest and most
diverse carbon project development group in Canada."
The Letter of Intent is subject to a number of conditions
including Exchange approval, receipt of financial statements &
information for CCC and Offsetters, and other conditions. It is to
be replaced by a definitive agreement on or before October 14,
Offsetters Clean Technology Inc., founded in 2005 by Tansey -
then (and still) with the University of British Columbia's Sauder
School of Business - is one of Canada's leading providers of carbon
It has been a leader in developing clean technology projects
utilizing carbon finance, having developed over 500,000 tonnes of
offsets to date, from landfill gas capture, biomass fuel switching,
energy efficiency, small scale hydro-electric and fuel reduction
Offsetters was the first ever Official Supplier of carbon
offsets for the 2010 Winter Olympic and Paralympic Games in
Vancouver and remains a leading offset supplier to numerous large
voluntary clients in Canada.
It is a leading supplier to the Pacific Carbon Trust (PCT), the
provincial Crown agency mandated to deliver made-in-B.C. carbon
offsets to help the private and public sector to meet their carbon
Pacific Carbon Trust was also in the news with the release last
week of two reports on the economic impact of its operations. (See
GLOBE-Net article (
New Reports Confirm Benefits of B.C.'s Carbon Offsets
Carbon Credit Corp. (CCC) has focused more on land-based carbon
offset projects and has supported development of millions of tonnes
of offsets in the Alberta Offsets System through changed
In addition to agriculture, CCC also works in forestry (through
the REDD mechanism) and on Natural Capital Investment
opportunities, principally in the Great Bear Rainforest. CCC also
helps organizations achieve their environmental sustainability
goals through their Carbon Smart™ program.
ERA plans to issue 2,000,000 share purchase warrants,
exercisable for the maximum permitted period under the policies of
the TSX Venture Exchange at a price of $0.40 per share, to the
sellers. The Company will also pay a minimum of $3,500,000 and a
maximum of $6,000,000 for the acquisition.
The final purchase price will be subject to a number of
conditions, including revenue generation between now and the final
closing date of the acquisition.
"ERA's expertise in forest-based carbon will be augmented with
the addition of the Carbon Credit Corp. team and Offsetters
expertise in clean technology carbon project consulting and
development," said Robert Falls.
Offsetters' James Tansey said, "This acquisition brings together
teams that have played a leading role in the establishment of
carbon markets in North America and internationally."
"As a single Company we will be able to deliver on almost every
form of carbon management service from measurement and reductions
strategies through to offset origination and supporting software
Tansey anticipates rapid growth in the demand for greenhouse gas
management services and offset origination, beginning in 2013 with
the launch of the cap and trade system under the Western Climate
The new ERA will be well positioned to provide one-stop service
for companies seeking to address their climate impacts, through the
addition of two companies that have developed some of the largest
forest carbon projects in the world in Canada and in the Democratic
Republic of the Congo.
"We expect to attract interest from project owners in the
fastest growing part of the global carbon market," said
Tansey. It's a view shared by Deloitte & Touche LLP.
Its report released last week (British Columbia: Balancing
Opportunities and Risks in the Global Carbon Economy)concludes that
as regional demand for low-carbon solutions increases, BC's
reputation for environmental responsibility can be capitalized upon
to develop new export markets for clean technology and clean
"BC's existing infrastructure and extensive knowledge of
standards and protocols development, combined with its increase in
accredited greenhouse gas validation and verification bodies,
situate the province as a potential leader in supporting the growth
of other carbon markets globally," notes the report.