an introduction: carbon finance & the voluntary carbon markets as
TRANSCRIPT
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An Introduction:Carbon Finance & The Voluntary Carbon
Markets as a Conservation Tool
Katherine Hamilton
Ecosystem Marketplace
July 31, 2007
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About the Ecosystem Marketplace“Bloomberg” for Emerging Markets in Ecosystem Services:
Carbon Markets , Water markets, Biodiversity Markets, Easements and Other Conservation TransactionsConsistent, accurate information is critical for building these ecosystem service markets
Daily news updates, feature articles, regular e-mail newsletters, and market watch
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EU ETSVol: 1,101 Mt (CO2e)
Value: $24,357 MCCX
Vol: 10 MTValue: $38 M
CDM/JIVol: 450 MtCO2eValue: $ 4,813 M
Voluntary Offset
13.4 + MT$100-250M
NSW GGAS20MT
$225 M
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Source: New Forests/Ecosystem Marketplace, World Bank
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Carbon Markets: Tool for reducing greenhouse emissions by providing economic incentives for reductions
Project based credits:emissions credits are the result of a specific carbon offset project.
Ex. Kyoto’s CDM & JI, Voluntary Offset Markets
Allowance based credits: are created and allocated under a cap- and- trade regime.
Ex. EU- ETS Trading Scheme; Chicago Climate Exchange
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Clean Development Mechanism & Voluntary Offset Markets
CDM:
• Kyoto Protocol link to developing countries
• Driven by regulation
• Project methodologies must be approved by Executive Board
• 450 Million tCO2e transacted in 2006
Voluntary Offset Markets:
• Projects across the globe
• Driven by corporate responsibility, anticipation of regulation, and individuals
• No unified system for quality control… evolving standards
• 13.4 to 30 Million tCO2e transacted in 2006
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Voluntary Over theCounter Offset Market: Chicago Climate
Exchange:
Off-Grid15%
Mixed / Other3%
Forestry37%
REC17%
Industrial Gas20%
Methane3%
EE5%
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A Potential Tool for Avoided Deforestation
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Fertile Ground for Micro Projects
Medium (14)22%
Mixed (3)8%Micro (19)
4%
Small (12)10%
Large (12)22%
Very Large (7)
34%
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Tree Huggers: Voluntary Carbon Markets Embracing Forestry
Can potentially avoid CDM cost hurdles
Space for innovation& testing methodologies
Demand for “Charismatic Carbon”in voluntary markets
Forestry easy for consumers to understand
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What do buyers value?
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Who is Driving this Market?
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Source: Indymedia.org.uk, 2007
Carbon Neutral Co. in the line of fire
225225225
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Voluntary carbon in the mainstream media limelight…
Financial Times Industry caught in carbon ‘smokescreen,’April 25, 2007
Business Week Another Inconvenient Truth, March 23, 2007
New York Times Carbon-Neutral Is Hip, but Is It Green? April 29, 2007
Christian Science MonitorDo carbon offsets live up to their promise?, January 10, 2007
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Despite critics on two fronts (LULUCF & voluntary offsetting), trees still standing tall…
Dell Computer: “Plant a Tree for Me” customers program
Home Depot: Offsetting flights and headquarters
Delta Airlines customer & employee program
William McDonough and Partnersoffsetting flights and headquarters
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Description Focus on Env. & Social Benefits
Reporting/Registration
IncludesLULUCFMethodology?
GeographicalReach
Gold Standard Certification for offset projects & carbon credits Yes VER registry in
development Energy projects
International
The VCS Certification for offset projects & carbon credits No Use Bank of
New York; other registry TBD
Yes, Methodology TBD
International
CCB Standards Certification program for offset projects Yes Projects on
Website OnlyLULUCF
International
CCX Internal system for CCX offset projects & CCX carbon credits No Registry
Incorporated w/ trading platform
Yes International
Plan Vivo Methodology and certification for offset projects & carbon credits Yes No Community
based agro forestry
International
VER+ Certification program for offset projects, carbon credits & carbon neutral products No TÜV SÜV
Blue RegistryIncludes a JI or CDM methodology
International
Social Carbon Certification for offset projects & carbon credits Yes Creating its
own registry system
Reforestation & Avoided deforestation
South America & Portugal
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Questions?
Contact: Katherine Hamilton
Email: Khamilton@
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ecosystemmarketplace.com
Tel: 1 (202) 298- 3007