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 directors.

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, 2012.

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 management solutions.

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 programs.

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 reduction goals.

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 Plan).

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 agricultural practices.

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(tm) 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 services.”

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 Initiative.

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 energy.

“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.