Overview of Carbon Markets Voluntary & Compliance Markets: Existing Carbon Reduction Units Vladimir Litvak RBEC Energy and Environment Practice Leader.

Slides:



Advertisements
Similar presentations
Latin American Carbon Forum 2011 C ARBON TRADING BEYOND 2012: NEW APPROACHES AND EMERGING MARKET INSTRUMENTS Latin America Carbon Forum San José, Costa.
Advertisements

Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional.
Global GHG Market Update Daniele Violetti Team Leader Registration and Issuance Unit Sustainable Development Mechanisms Programme UNFCCC Carbon Forum America.
The GKI Telephone: /2 Website: What is Carbon Finance?
The CDM: a review of its development and status of the carbon markets Dr. Oscar Coto II National CDM Workshop Belize August 2011.
National Inventories of Greenhouse Gas Emissions Yamil Bonduki Coordinator National Communications Support Programme.
©2004 AgCert International LLC™ The Solution for Managing Climate Change State of the Global Emission Reduction Marketplace Changes Since COP-9 Todd Jones.
Introduction to Carbon Market Yves TUYISHIME REMA.
UNFCCC Secretariat Overview of the CDM and the CDM project Cycle Training-Workshop to support the “Uganda Municipal Waste Compost Programme” Kampala, Uganda,
2 Ms Gwen Andrews Chief Executive Some practical approaches to implementing the Kyoto Protocol ISO Sydney - September 2001.
KYOTO PROTOCOL MECHANISMS EURASIA 歐亞 Solicitors and Advocates.
Peter E. Farrell Honors Seminar: Energy, Society & Climate Change
Enter Climate Change Source: NASA Climate Change Cooperation.
Green investment scheme and climate change mitigation policy in Ukraine Stavchuk Iryna Climate change program coordinator National ecological centre of.
Francesca Romanin Jacur Milan University
Group H Carbon Credits Business Case. About Carbon Credits Carbon credits are certificates issued to countries that reduce their GHG emissions One credit.
UNDP, Bangkok, 1 April 2008 AWG on Further Commitments In-session workshop on means to reach emission reduction targets CDM Experiences and Lessons.
D EMYSTIFYING C ARBON C REDITS E FFECTS OF C LIMATE C HANGE  Change in the temperature, Cyclones & Extreme Weather  Melting of the Ice  Rise in Sea.
CARBON CREDITS.
DNA National Workshop Belmopan 4 & 5 November 2010 Carlos Fuller Deputy Director The Status of the Climate Change Negotiations and Implications for the.
Introduction to Climate Change: - global warming - basis steps in a clean development project - connection of CDM with European Trading Scheme Wim Maaskant.
State, Trends and Barriers to Carbon Finance in RBEC Marina Olshanskaya Regional Energy/Kyoto Protocol Specialist RBEC Energy and Environment Practice.
Carbon markets An international tool for cost-effective GHG mitigation.
Natsource LLC Proprietary and Confidential- Not to be Reproduced Natsource Asset Management 1 Presentation to the Annual Meeting of Host Country Committee.
Brief Overview of Legal Framework: UNFCCC and Kyoto Protocol M.J.Mace Climate Change and Energy Programme, FIELD LDC Workshop Nairobi, Kenya 2-3 November.
Capacity building on business opportunities for CDM projects in China A project funded by the European Union and carried out by CIRPS, Global Environmental.
Origins of the CDM - Climate Change and the Kyoto Protocol Capacity Development for the Clean Development Mechanism (CD4CDM) Project 2 nd National Workshop.
SESSION 3: Climate Change Financing Opportunities.
Carbon Finance Strategy at the World Bank Carbon Finance Strategy at the World Bank CHARLES CORMIER December 2005.
....innovating clean energy solutions…. Glenn S. Hodes UNEP Risø Center CARBON FINANCE.
Power Sao Paulo, December 7 th, 2006 International CDM Market Dr. Manuel Fuentes.
© 2006 UNDP. All Rights Reserved Worldwide. Proprietary and Confidential. Not For Distribution Without Prior Written Permission. State and Trends of the.
International Framework and Kyoto Protocol. UNFCCC Conference of the parties (annual meeting) –Review implementation –Consider new needs –Subgroups Creates.
Current Trends in the Carbon Market Robbie Louw 26-27June 2007.
Carbon Finance at the World Bank Host Country Committee Meeting October
AGEC/FNR 406 LECTURE 21 Atmospheric Concentrations of Carbon Dioxide,
Deregulation and Cap/Trade Gary Flomenhoft, Energy Policy Week 2.
Lessons from implementing the EU Emission Trading System DG Environment European Commission Side event 2009 Climate Change.
3 – Clean Development Mechanism Introduction to Climate Change Wim Maaskant BGP Engineers – The Netherlands
CLIMATE CHANGE – NEW OPPORTUNITIES FOR SUBSOIL USERS Yerzhan Yessimkhanov Director, Subsoil Use Department Grata Law Firm 1.
Kyoto Protocol Pankaj Jain.
Innovative Sources of Funding for SLM:
1 Overview and Status: CDM and JI Heather McGeory Project Manager, Natsource Introductory Workshop on the Clean Development Mechanism (CDM) & Joint Implementation.
CD4CDM National Workshop, Accra, Ghana February 2006 Glenn S. Hodes UNEP Risø Center CARBON FINANCE.
The Carbon Market Karan Capoor World Bank Carbon & Environmental Finance BioCarbon Fund Washington DC, 12 September 2005 The findings and opinions expressed.
L/O/G/O ประเสริฐสุข จามรมาน รองผู้อำนวยการองค์การบริหาร จัดการก๊าซเรือนกระจก ยุทธศาสตร์การเติบโต แบบสีเขียว (Green Growth) 1.
Ijaz Hossain Chemical Engineering Department BUET
UNIDO Vietnam Support for CDM projects in the Industrial sector: Pilot Project in Co-operation with the Austrian Industry Training Sessions on the Kyoto.
UNEP Collaborating Centre on Energy and Environment CDM developments Njeri Wamukonya Regional CD workshop, 3-4 March 2003, NBI.
Kyoto Protocol – War for our future
Kyoto Protocol IDC3O3 Ms. Nguyen.
Overview on CDM By Ann Gordon Ministry of Natural Resources and the Environment 14 th July 2011.
National and Global Initiatives IB SL. International Policy The 1988 Toronto conference on climate change called for the reduction of CO 2 Emissions by.
CDM Project Cycle LGED Bhaban, Dhaka 8 – 9 April 2008 Presented by Khandaker Mainuddin Fellow, BCAS.
Carbon Revenue and MFIs: Making it Work Marco van der Linden Ramesh K. Gautam.
Training Seminar for the BioCarbon Fund Projects
Challenges and Opportunities for Addressing Global Climate Change February 2006.
1 Using Cleaner Production to Facilitate the Implementation of Multilateral Environmental Agreements.
The Climate Treaties: UNFCCC and Kyoto Protocol. UNFCCC.
Joint Intersectoral Task Force on Environmental Indicators Fifth session Geneva, 4 – 6 July 2012 Grenhouse Gas Emissions Introductory Overview Vladislav.
Environmental Industries Sector Unit CDM Opportunities in South Korea Greg Dunne, Director, ICECAP Ltd. Seoul, 25 th September 2006 EISU Seminar Mission.
Sustainable Development: Cooperation in FEALAC Sustainable Development: Cooperation in FEALAC October ,200 7 Economy and Society WG Delegation of Japan.
Overview of the Legal Framework: UNFCCC and Kyoto Protocol Session 1 M.J. Mace Climate Change and Energy Programme ECBI pre-COP 13 Workshop for Least Developed.
Brief Overview of Legal Framework: UNFCCC and Kyoto Protocol M.J.Mace Climate Change and Energy Programme, FIELD LDC Workshop Montreal Canada November.
Clean Technology (PB386) Click to edit Master title style Numfon Eaktasang, Ph.D.
National and Global Initiatives
KYOTO PROTOCOL.
The Kyoto Protocol Mechanisms
State and Trends of the Carbon Market 2005
Kyoto Protocol.
Presentation transcript:

Overview of Carbon Markets Voluntary & Compliance Markets: Existing Carbon Reduction Units Vladimir Litvak RBEC Energy and Environment Practice Leader UNDP/GEF Regional Coordinator RBEC Energy and Environment Practice Meeting Wednesday 27 th September, 2006 Bratislava, Slovakia

1 RBEC Energy and Environment Practice Meeting: Carbon Finance September $ $ $ Kyoto Protocol $

2 RBEC Energy and Environment Practice Meeting: Carbon Finance September Main Greenhouses Gases addressed in UNFCCC : Carbon Dioxide: CO 2 Methane: CH 4 Nitrous oxide: N 2 O Hydrofluorocarbons: HFCs Perfluorocarbons: PFCs Sulphur hexafluoride: SF 6

3 RBEC Energy and Environment Practice Meeting: Carbon Finance September Greenhouse Gases are generated by the following sectors: Energy: – Fossil Fuel Combustion & – Fugitive emissions from fuels Industrial processes Solvent & other product use Agriculture Waste

4 RBEC Energy and Environment Practice Meeting: Carbon Finance September The Kyoto Map Ratification date: February 16, 2005 Ratified by 160 countries (up to April 12, 2006) Not ratified by Australia and USA that together represent 33% of world total emission

5 RBEC Energy and Environment Practice Meeting: Carbon Finance September Kyoto Mechanisms The Kyoto Protocol broke new ground by defining three innovative “flexibility mechanisms” to lower the overall costs of achieving its emissions targets: Clean Development Mechanism (Art. 12) Joint Implementation (Art.6) Emissions Trading (Art.17) These mechanisms enable Parties to access cost- effective opportunities to reduce emissions or to remove carbon from the atmosphere in other countries.

6 RBEC Energy and Environment Practice Meeting: Carbon Finance September Each Kyoto Mechanism has its own Emission Credits: CDM (Art.12): Certified Emission Reductions (CERs) Joint Implementation (Art. 6): Emission Reduction Units (ERUs): Emission Trading (Art.17): Asigned Amount Units (AAUs): One period of 10 years or 3 x 7 years

7 RBEC Energy and Environment Practice Meeting: Carbon Finance September Different Carbon Markets Allowance-based Transactions The buyer purchases emissions allowances created and allocated by regulators under cap-and-trade regimes such as Assigned Amount Units (AAU’s) under the Kyoto Protocol or EU Allowances (EAU’s) under the EU Emission Trading Scheme. Project-based Transactions The buyer purchases emission credits (CERs, ERUs, VERs) from a project that reduces GHG emissions. Some project-based transactions are conducted to meet voluntary targets, but most are intended to for compliance with the Kyoto Protocol or other regulatory regimes. No difference in quality between emission allowances and project-based credits, once the latter are issued !

8 RBEC Energy and Environment Practice Meeting: Carbon Finance September There are 45 Different Carbon Markets, but 2 main regimes Project-based Markets: The Kyoto Protocol (CDM and JI) – MANDATORY REGIME Marrakech Accords Executive Board (CDM and JI) Methodology Panel National mitigation plans (e.g. Canada, Japan, EU countries) Non-Kyoto Regimes – MANDATORY REGIME USA (individual States; Oregon, California, East Coast) Australia (individual States; New South Wales) Voluntary Regimes Chicago Climate Exchange Retail market Allowance-based Market EU Emissions Trading Scheme (as of Jan. 2004) Linking directive EU-ETS & Kyoto Protocol

9 RBEC Energy and Environment Practice Meeting: Carbon Finance September Structure of Carbon Markets Allowance Markets UK ETS EU Emission Trading Scheme Chicago Climate Exchange New South Wales Certificates Project-Based Transactions JI and CDM Voluntary Retail Other Compliance

10 RBEC Energy and Environment Practice Meeting: Carbon Finance September CDM Projects (3 September 2006) Source:

11 RBEC Energy and Environment Practice Meeting: Carbon Finance September Project-based Transactions – Annual volume of project-based emission reductions and average price is US$/tCO2eq

12 RBEC Energy and Environment Practice Meeting: Carbon Finance September Project-based Transactions – Location of CDM & JI Projects

13 RBEC Energy and Environment Practice Meeting: Carbon Finance September Project-based Transactions – Who is buying?

14 RBEC Energy and Environment Practice Meeting: Carbon Finance September Type of technology in emission reduction projects (as a share of volume contracted)

15 RBEC Energy and Environment Practice Meeting: Carbon Finance September Project-based Transactions – Who is what price level…..? Price levels vary according to (assumed) risk levels: (current – September 2006 – price levels for CERs: €7-8 ($8-10)

16 RBEC Energy and Environment Practice Meeting: Carbon Finance September Allowance-based Transactions – Who is what price level > €28 !? Total of 6.57 billion CO2 allowances for 25 EU countries Trading volume Jan 2006: million CO2 allowances/week

17 RBEC Energy and Environment Practice Meeting: Carbon Finance September Carbon Market outlook to 2012 The countries with shortfalls in their Kyoto emission allowances are likely to need billion Kyoto compliant units by 2012 to meet their commitments. Based on current trends the CDM is probably capable of supplying an average of million CERs per year during the commitment period or, in aggregate, around 800 million CERs by JI is estimated to be able to supply an additional million ERUs per year during , or in total million by Combined CER and ERU supply to 2012 could be around 1,000 million units, which would meet about 15-25% of Kyoto market demand for compliance units. Source: UNDP-EEG, March 2006

18 RBEC Energy and Environment Practice Meeting: Carbon Finance September Kyoto Protocol ends in 2012: What’s next? There exist many uncertainties about the post-Kyoto Regime Which target? Will all countries participate? Mandatory regime for all? It is an ongoing & learning process  high dynamic, high uncertainty Possible Future of CDM: by Project; by Sector; by Programme? First COP/MOP: Montreal (2005) The creation of a market for a Public Good such as GHG is a hard and complex task Climate Change is here  What about adaptation, more a priority? Non Annex I Countries are still asking for poverty alleviation and economic development

19 RBEC Energy and Environment Practice Meeting: Carbon Finance September $ $ $ Kyoto Protocol $ Thank you!