CCME Pan-Canadian GHG Offsets Framework Strategic Considerations on the Role and Objectives of an Offsets Framework

March 23, 2017

About Bluesource

Carbon Project Investment, Development, Marketing • Leader in carbon project finance, development, marketing since 2001 • >100M t portfolio, >25M t sold to date • All key regulatory/voluntary registries (Alberta, CAR, VCS, ACR, CSA, BC-Markit) • Compliance Market presence: ~15-22% of all offsets generated in Alberta on yearly basis and ~20% in California/Quebec market to date

Advisory Services • Corporate carbon mitigation and offset strategies, compliance plans & education • Technical services including emission reduction quantification and valuation • Protocol development: methodologies for over 25 project types • Facility GHG/emission reporting • Project finance and other funding/grant applications

Calgary Salt Lake City San Francisco Toronto

Bluesource’s Canadian Project Portfolio

1. Thoughts on the Role of the Framework From our perspective, a good framework would…

• Maximize the generation of real reductions across Canada

• Unlike tax, allowances or permits, offsets represent actual reductions • Should maximize, not constrain the potential of the instrument

• Enable innovation • A dynamic offset system that embraces innovation provides a direct, tangible and actionable price signal for

cleantech entrepreneurs • Provide policy and economic resilience to cleantech entrepreneurs

• More than one market/larger market provides better investment risk protection • Longer term certainty allows for capital deployment

• Protect competitiveness of Canadian companies with lower cost compliance options

2. Thoughts on Framework Objectives Framework objectives should include…

• A commitment to not reinvent the wheel

• Leverage existing infrastructure, expertise, knowledge and best practices across the industry and existing provincial programs

• Providing clarity and certainty as soon as possible in order to pull forward, not delay project development • Reducing friction and increasing efficiency • Design for fungibility • Seek to reduce rather than create inter-provincial trade barriers

3. Closing Thoughts Don’t let perfection be the enemy of the good

• Design for the real world, not unicorns • Pragmatism will yield better results

Allow for regional/provincial uniqueness

• Don’t take highest common denominator approach on project eligibility Embrace opportunity Canada has to provide template for Article 6 implementation

• Be a policy maker, not taker • Providing a working example for linkage of difference pricing approaches • Will provide a competitive advantage for Canadian cleantech companies • Be bold and innovative

| THANK YOU. QUESTIONS? Yvan Champagne President, Bluesource Canada T: 403-262-3026 x.226 C: 647-408-9122 E: yvanc@bluesourceCAN.com