1. Carbon credits presented To: Sir Zaheer Abbas

2. Tahir Mehmood Liaquat Ali Sami Ullah Muhammad Ijaz Muhammad Hanan

3. www.beckstrom.com A Layman’s guide… And lots more….

5. Carbon credits  Carbon credits are a key component of national and international emissions trading schemes that have been implemented to mitigate global warming.  They provide a way to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading.

6. Background  Burning of fossil fuels is a major source of industrial,greenhouse gas emissions, especially for power, cement, steel, textile, fertilizer and many other industries which rely on fossil fuels (coal, electricity derived from coal, natural gas and oil).  The concept of carbon credits came into existence as a result of increasing awareness of the need for controlling emissions..

7. .Credits versus taxes  By treating emissions as a market it becomes easier for business to understand and manage their activities  The cost of carbon is set by the market, and not by politicians. Investors in credits have more control over their own costs.  The flexible mechanisms of the Kyoto Protocol ensure that all investment goes into genuine sustainable carbon reduction schemes, through its internationally-agreed validation process.

8. Additionality and Its Importance  Additionality is a term used by Kyoto's Clean Development Mechanism to describe the fact that a carbon dioxide reduction project (carbon project) would not have occurred had it not been for concern for the mitigation of climate change.  The Kyoto Protocol, an international agreement between more than 170 countries, The mechanism adopted was similar to the successful US Acid Rain Program to reduce some industrial pollutants.

9. Climate change Rapid Industrial Growth Increased Energy Consumption Increased CO2 and other GHG Emissions Global Warming due to Increased Concentration of GHG Increased changes in wind Changes in Sea Level and Precipitation crop yields

10. Contributors to CO2!

12. Carbon credit 1 carbon credit ≈ 1 ton of CO2 or its equivalent greenhouse gas (GHG) which is an entitled certificate by UNFCCC. (United Nations Framework Convention on Climate Change)

13. How buying carbon credits can reduce emissions  Carbon credits create a market for reducing greenhouse emissions by giving a monetary value to the cost of polluting the air. Emissions become an internal cost of doing business and are visible on the balance sheet alongside raw materials and other liabilities or assets.

14. Kyoto protocol

15. What is Kyoto Protocol?  The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change(UNFCCC) passed on 11 December 1997 in Kyoto, Japan but came in force on 16 February, 2005.Countries that ratify this protocol commit to reduce  Their emissions of carbon dioxide and  Five other greenhouse gases, or  Engage in emissions trading if they maintain or increase emissions of these gases.

16. Features of Kyoto protocol  It sets legally binding targets for emissions of 6 major greenhouse gases in industrialized countries and defines a specific time period for reaching those targets.  It creates a new commodity (carbon) that can be traded through new international market- based mechanisms.  It will facilitate the initials of sustainable development while providing additional support to developing nations to achieve this goal.

17. United Nations Framework Convention on Climate Change  Act signed by 165 nations in 1992 at Rio de Janeiro, presently 194 countries.  Annex 1 & Non-Annex 1 countries.  Annex 1 (developed countries) agreed to reduce their GHGs by 5.2% below 1990 levels in 1st commitment period 2008 – 2012.

18. Mechanisms Under the Protocol Clean Development Mechanism (CDM):This mechanism allows developed (or Annex 1) nations to receive emission credits towards their own emission targets by participating in certain projects in developing (or Non-annex 1) countries. These Clean Development projects must be approved by members of the Protocol and must contribute to sustainable development and greenhouse gas emission reductions in the host developing country.

19. Joint Implementation This mechanism allows Annex 1 nations to receive emission credits towards their own emission targets by participating in certain projects with other Annex 1 nations. These Joint Implementation projects must be approved by all nations participating in the project, and must either reduce greenhouse gas emissions or contribute to enhanced greenhouse gas removal through emission sinks (i.e. reforestation).

20. Emissions Trading: This mechanism allows Annex 1 nations to purchase emission ‘credits’ from other Annex 1 countries. Some countries will be below the emission targets assigned to them under the Protocol and, as such, will have spare emission credits. Under the emissions trading system, other nations may purchase these spare credits and use them towards their own emission targets.

21. Kyoto protocol Annex I Non-Annex I Not ratifie d

22. Non -Annex-1 India Bangladesh Brazil China Afghanistan Algeria Nepal Argentina Bolivia Srilanka Pakistan Malaysia Mauritius Annex I Australia(Not ratified) Austria Belgium Monaco Canada Netherland New zealand United Kingdom Germany Spain Switzerland Greece

25. CO2 Rising CO2 levels 1830 0.028 % 2007 0.038% 0.0005 % ^ annual 2100 0.085% www.beckstrom.com

26. CO2 Cycle www.beckstrom.com

27. Greenhouse Gases CH4 CO2 PFCs HFCs SF6 310x 11,000 x 12,000 x 19 x CO2 Equivalent is Gold Standard 22,000 x N20 www.beckstrom.com

28. Long Term Trend www.beckstrom.com

29. Temperature Rising www.beckstrom.com

31. According to the NASA satellite data: - “More than 2 trillion tons of land ice in Greenland, Antarctic and Alaska have melted since 2003″. - “Water melting from Greenland in the past five years would fill about 11 Chesapeake Bays and the Greenland melt seems to be accelerating.”

32. Green House Effect

34. Size of Global Footprint  What is a carbon footprint?  36+ BN tons of CO2 equivalents emitted  Earth can only absorb ˜8 BN tons  6 BN people  5 - 6 tons per person, on average www.beckstrom.com

35. Per Capital Footprints www.beckstrom.com

37. Where is it Coming From? Prepared by Robert A Rohde Data source: Carbon Dioxide Information Analysis Center www.beckstrom.com

38. Cumulative Footprints www.beckstrom.com