California Assembly Bill 1305 Seller Disclosures

Last Updated: December 2024

Terraformation, on behalf of itself and/or its affiliates (collectively, “Terraformation” or “we”), is making the following disclosures pursuant to Section 44475 of Division 26 of the California Health and Safety Code (“California Assembly Bill 1305” or “AB 1305” or “Voluntary Carbon Market Disclosures”) for compliance purposes only.

Without first obtaining the express written consent of Terraformation, none of the information contained within these disclosures may be used or relied upon by any company, organization, or other person for any purpose, including, without limitation, to form the definitive basis for any decision, purchase, investment, contract or action whatsoever.

These disclosures are not all-inclusive, nor do they contain all information that may be necessary to properly evaluate any decision, purchase, investment, contract or other action. The information presented in these disclosures has been developed internally and/or obtained from sources believed to be reliable.

While Terraformation believes the information in these disclosures to be accurate, Terraformation is not making any representation, express or implied, as to the accuracy, adequacy, timeliness, or completeness of any information contained herein.

Further, Terraformation neither assumes nor accepts any responsibility, obligation, or liability of any kind in relation to any of such information, disclaims all warranties, express or implied, with respect to such information and disclaims any obligation to update any such information except to the extent required by law.

Sembrando Futuro 2.0 – Colombia

View this project listing on the Verra registry.

(a) Details regarding the applicable carbon offset project, including all of the following information:
(1) The specific protocol used to estimate emissions reductions or removal benefits. VM0047 Afforestation, Reforestation, and Revegetation, v1.0
(2) The location of the offset project site. Colombia
(3) The project timeline. 2023 - 2063
(4) The date when the project started or will start. September 2023
(5) The dates and quantities when a specified quantity of emissions reductions or removals started or will start, or was modified or reversed. The project crediting period began in September 2023.
(6) The type of project. Carbon removal
(7)Whether the project meets any standards established by law or a nonprofit entity. Verified Carbon Standard (VCS)
(8) The durability period for any project that the seller knows. 40 years
(9) Whether there is independent expert or third-party validation or verification. Yes; the VCS Project Validator has not yet been selected at this stage.
(10) Emissions reduced or carbon removed on an annual basis. The estimated average annual emission reductions from this project are 7,813 mtCO2e/year.
(b) Details regarding accountability measures:
(1) If carbon storage projects are reversed. Reforestation projects face certain reversal risks from natural forest disturbances (e.g., wildfires and disease). To address these risks and potential reversals, this project:

(a) Adheres to Verra’s monitoring and reporting requirements. The project undergoes regular monitoring to identify any reversals. Any reversal event is promptly reported through Verra’s loss event procedures as laid out in the Registration and Issuance Process, v.4.6.

(b) Abides by Verra’s buffer pool contribution requirements. Per Verra standards, all land-based carbon projects contribute a risk-adjusted percentage of emissions reductions and removals to a pooled buffer account to hedge against carbon reversals. This buffer exists to replace any credits that are reversed, which allows credits to remain valid even if the project that issued these credits suffers a reversal event.

(c) Engages in remediation and restoration. Following a reversal associated with the project, Terraformation will initiate immediate remediation measures, such as replanting.
(2) If future emissions reductions do not materialize. Terraformation abides by the below policies and procedures in the event a reforestation project fails to deliver forecasted emissions reductions:

(a) Project evaluation and adaptation. If project monitoring reveals underperformance, then certain adaptive management strategies may be implemented to align the project with its carbon removal goals.

(b) Contractual obligations. Terraformation abides by any applicable contractual obligations to satisfy project issuance shortfalls.
(c) The pertinent data and calculation methods needed to independently reproduce and verify the number of emission reduction or removal credits issued using the protocol.

The types of data and calculation methods are available in the VM0047 methodology.

Regenerative Development of Anlo Wetlands – Ghana

View this project listing on the Verra registry.

(a) Details regarding the applicable carbon offset project, including all of the following information:
(1) The specific protocol used to estimate emissions reductions or removal benefits. VM0033 Methodology for Tidal Wetland and Seagrass Restoration, v.2.1
(2) The location of the offset project site. Ghana
(3) The project timeline. 2024 - 2064
(4) The date when the project started or will start. August 2024
(5) The dates and quantities when a specified quantity of emissions reductions or removals started or will start, or was modified or reversed. The project crediting period began in August 2024.
(6) The type of project. Carbon removal
(7)Whether the project meets any standards established by law or a nonprofit entity. Verified Carbon Standard (VCS)
(8) The durability period for any project that the seller knows. 40 years
(9) Whether there is independent expert or third-party validation or verification. Yes; the VCS Project Validator is Earthood Services Private Limited.
(10) Emissions reduced or carbon removed on an annual basis. The estimated average annual emission reductions from this project are 17,842 mtCO2e/year.
(b) Details regarding accountability measures:
(1) If carbon storage projects are reversed. Reforestation projects face certain reversal risks from natural forest disturbances (e.g., wildfires and disease). To address these risks and potential reversals, this project:

(a) Adheres to Verra’s monitoring and reporting requirements. The project undergoes regular monitoring to identify any reversals. Any reversal event is promptly reported through Verra’s loss event procedures as laid out in the Registration and Issuance Process, v.4.6.

(b) Abides by Verra’s buffer pool contribution requirements. Per Verra standards, all land-based carbon projects contribute a risk-adjusted percentage of emissions reductions and removals to a pooled buffer account to hedge against carbon reversals. This buffer exists to replace any credits that are reversed, which allows credits to remain valid even if the project that issued these credits suffers a reversal event.

(c) Engages in remediation and restoration. Following a reversal associated with the project, Terraformation will initiate immediate remediation measures, such as replanting.
(2) If future emissions reductions do not materialize. Terraformation abides by the below policies and procedures in the event a reforestation project fails to deliver forecasted emissions reductions:

(a) Project evaluation and adaptation. If project monitoring reveals underperformance, then certain adaptive management strategies may be implemented to align the project with its carbon removal goals.

(b) Contractual obligations. Terraformation abides by any applicable contractual obligations to satisfy project issuance shortfalls.
(c) The pertinent data and calculation methods needed to independently reproduce and verify the number of emission reduction or removal credits issued using the protocol.

The types of data and calculation methods are available in the VM0033 methodology.