Bank of America Merrill Lynch Enters Carbon Offset Pact with TerraPass [Professional Services Close – Up]

Bank of America Merrill Lynch announced a multi-million carbon offset agreement with TerraPass Inc., a U.S.-based company that brings to market verified carbon offsets and manages a portfolio of carbon reduction projects across the country.

According to a release, all of the offsets covered by the agreement are expected to be compliant with the California Air Resources Board's approved standards.

With its first auction scheduled for mid-2012, the Company said this program is part of AB32, California's program to reduce carbon emissions.

"We intend to build on the innovative transactions we've completed in Europe and elsewhere to help U.S. clients hedge their exposure to carbon pricing and source emission reduction offsets as part of an integrated solution," said Abyd Karmali, global head of Carbon Markets in the Global Commodities Group at Bank of America Merrill Lynch. "By acting as a first mover in California, we are positioning ourselves as the offset provider of choice for companies that will need to become compliant under these new regulations."

"We are thrilled to partner with Bank of America Merrill Lynch to help build a robust market for California compliance offsets," said Erin Craig, CEO of TerraPass. "BofA Merrill's financial strength and market reach combined with our offset project capabilities creates a best-in-class solution."

Under the agreement, Bank of America Merrill Lynch Global Commodities Group has an option to purchase and bring to market several million tons of ARB-compliant California carbon offsets from TerraPass Inc. through 2020, which will be generated from a pool of agricultural methane projects located throughout the U.S.

TerraPass has experience working with project developers to create greenhouse gas reduction projects in a variety of industries including farming, landfills and wind power installations. All of the company's agricultural methane projects use an approved AB32 offset protocol. This is the second long-term transaction that Bank of America Merrill Lynch has entered into with TerraPass Inc.

"We are pleased to be working with TerraPass, a highly innovative and respected player in the California carbon offset market," said Karmali. "This partnership will enable us to offer our corporate clients, who will have a carbon emissions compliance obligation under AB32, an integrated hedging solution that includes power, fuels, and carbon risk management."

Bank of America is a financial institution, serving individual consumers, small- and middle-market businesses and large corporations.

More Information:

www.bankofamerica.com/environment

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