the international voluntary co2 market current state and prospects for the future casiana fometescu...
TRANSCRIPT
The International Voluntary CO2 Market
Current State and Prospects for the Future
Casiana FometescuConsultant Carbon Expert
Romaniawww.carbonexpert.eu
Contents
Volumes and Average Prices
Forestry Market
Major Players
Project Types
Long Term Tendencies & Predictions
Transactions Volumes 2008 - 2013
AVERAGE PRICE
The Forestry Market
17% Volume Increase in 2013 (agriculture, REDD, land-use)
Total Volume in 2013: 32.7 MtCo2
Average REDD offset price: $ 4.2 tCO2
Beyond carbon benefits (jobs, investments in infrastructures, education, health)
Latin America – top projects supplier
Major Players
- Buyers- Sellers- Standard Organizations
What stands for these acronyms?
GS – Gold Standard
VCS – Verified Carbon Standard
CAR – Climate Action Reserve
ACR – American Carbon Standard
CCB – Climate, Community and Biodiversity Standard
SC – Social Carbon
Retirements by Standard Organization
Market Shares
Who are the Sellers?
• Project Developers• Retailers• Brokers• Government
Transacted Volumes by Seller Types
Who are the Buyers?
Offset credit retailers
Governments
Energy utilities
Multinational companies
Other sectors (finance, transport, food, events etc.)
BUYER SECTORS
Buyers Motivations
Balance between profit – climate driven
CSR – corporate social responsibility
Leadership in Industry
Production Chain Sustainability
Marketing and image
Europe – the Main Buyer
Why Europe as the main buyer?
The European Union is the main promoter for CO2 emissions reductions
The EU ETS is the main pillar of the climate change regulated policy in Europe
Much awareness among companies and people
3 European countries currently have “voluntary” legislation: Germany, France, the Netherlands
Pilot projects to be extended at the whole EU
Romania’s case
Project Types
Average Price by Project Type
Tendencies on Long Term:
Standards collaboration – shared expertise
Collective management of the projects
Less profit
More climate change driven motivations
Co-benefits beyond carbon
Tendencies on Long Term
Rise of CSR in companies/corporations
Zero CO2 or emissions – brand for companies
Shift of the voluntary market to regulated market. Ex. California, predicted for the EU
New buyer sector: Government & Public Institutions
Rise of End-buyers: individuals
Predictions for the future
Most estimations see a long term price increase together with increase in trading volumes
Market value predicted for 2020: 1.8 billion USD (based on historical average price $5.9 tCo2)
Volume estimated to 300 MtCO2e in 2020
Reduced projects’ pipeline in the next 5 yeas
Future Trends
Thank you for your attention and take a lead into your industry!
Casiana FometescuCO2 Consultant, Carbon
Expert
[email protected]: casianairina
www.carbonexpert.eu