Camco Group wide range of climatechange services

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(No Transcript)
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Camco Group wide range of climate-change
services
Assets - Geography

• Assets, Advisory, Ventures
• ASSETS
• 145 mt contracted portfolio
• 30 mt registered
• 78 mt with host country approval
• 37 mt in specie
• 50 mt under ERPA
• ADVISORY
• Carbon Footprinting
• Carbon Management (private and public sectors)
• Project / Portfolio Screening
• Offset Purchasing Strategies
• VENTURES
• Technologies, Projects and Services

Assets - Technology
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Kyoto Protocol Market Mechanisms Marrakech
Accords

• Emissions Trading national trading of Assigned
  Amount Units (AAUs)
• Joint Implementation emissions reductions from
  a project in one Annex I country (with cap) sold
  to another Annex I country. Unit Emissions
  Reduction Unit (ERU) equivalent to an AAU
• Clean Development Mechanism emissions
  reductions from a project in a developing country
  (without a cap) sold to an Annex I country. Unit
  Certified Emissions Reductions (CERs)
• The European Linking Directive allows both ERUs
  and CERs to be bought by private companies to
  count to their ETS obligations

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Commonwealth countries that ratified Kyoto
Protocol

• Annex 1 (developed countries, demand for
  credits)
• UK
• Australia
• New Zealand
• Canada

Non-Annex 1 (developing countries, supply of
credits All other members except Brunei (St
Kitts and St Nevis ratified 2008)
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The Voluntary Carbon Market
COMPLIANCE MARKET Credits bought to meet legal
obligations placed on either countries (through
Kyoto) or companies (through regional trading
schemes)

• VOLUNTARY MARKETCredits bought on a voluntary
  basis to meet self-imposed carbon offsetting
  pledges

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Voluntary Credits are called VERs (Verified
Emissions Reductions Wide range of standards
exist to ensure that credits are verified Wide
range of credit prices to reflect different
quality and market attractiveness of projects
(compliance credits can also be bought
voluntarily Often driven by CSR or PR
requirements
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Compliance markets key difference between JI
and CDM

• JI operates within a capped system the host
  country concedes that the ERUs sold will no
  longer count towards its internal effort to meet
  its Kyoto cap. No incentive to exaggerate
  reductions.
• CDM host countries have no cap therefore
  incentive to inflate claimed savings as much as
  possible
• Additionality in CDM is key it must be proven
  that in the absence of CDM the emissions
  reductions due to the project would not have
  happened

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Compliance markets - more differences JI and CDM

• JI has a simpler project cycle because
  additionality and ERU inflation are less critical
• JI has two routes to project development one is
  wholly controlled by the host country Government
• Every CDM project is scrutinised by accredited
  companies (DOEs) AND the UNFCCC
• JI credits (ERUs) only issued since Jan 08 (Kyoto
  compliance period). CERs issued in advance of
  Kyoto.

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Complaince CDM CERs Issued by Sector and host
country
Afforestation
Expected average annual CERs from registered
projects by host party Total 214,482,027 (March
08)
Reforestation
HFC N2O reduction
2.5
Fuel switch
Energy Efficiency
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CH4 reduction Cement
Coal mine/bed
1.5
Renewables
Billions of CERs
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0.5
0
Jun-04
Jun-05
Jun-06
Jun-07
Oct-04
Apr-05
Oct-05
Apr-06
Oct-06
Apr-07
Oct-07
Apr-04
Aug-04
Aug-05
Aug-06
Feb-07
Aug-07
Dec-03
Feb-04
Dec-04
Feb-05
Dec-05
Feb-06
Dec-06
Dec-07
Source CDM Pipeline (The UNEP project CD4CDM)
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CDM Projects Around the World
Source UNFCCC
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Requirements for CDM and high quality voluntary
projects
Additional, measurable, repeatable emissions
reductions
Clearly defined and justified baseline scenario
A relevant approved methodology
Clearly stated sustainable development benefits
and thorough local consultation and environmental
impact assessment
Clearly defined and proven additionality argument
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Players in the CDM game
Parties
Local or international entity partnership
between owner and CDM specialist
Project Participants
Usually international company accredited by
UNFCCC, can have local auditors
Designated Operational Entity (DOE)
Elected UN panel total control over CDM
CDM Executive Board
Designated National Authority (DNA) of host and
Annex I country
Often part of Environment Ministry can be one
person or an entire department
Parties, Stakeholders, Accredited NGOs
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CDM Project Stages and Parties Involved
Project Idea Note (PIN) Project Design Document
(PDD)
Design
Parties
Validation
Project Participants
Approval
Designated Operational Entity (DOE)
Registration
Consultations
CDM Executive Board
Implementation
Designated National Authority (DNA) of host and
Annex I country
Monitoring and Reporting
Verification
Parties, Stakeholders, Accredited NGOs
Issuance
BACK TO CONTENTS
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Generic VER Project Stages and Parties Involved
Project Idea Note (PIN) Project Design Document
(PDD)
Design
Parties
Validation
Project Participants
Approval
Designated Operational Entity (DOE)
Registration
Consultations
CDM Executive Board
Implementation
Designated National Authority (DNA) of host and
Annex I country
Monitoring and Reporting
Verification
Parties, Stakeholders, Accredited NGOs
Issuance
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Diversity of Standards

• Regional
• DEFRA Proposed (UK)
• GGAS (Aus)
• Greenhouse Friendly (Aus)
• Eco-Logo (Canada)
• RGGI Model Rule (US)
• CCAR (US)
• The Climate Trust (US)

• International
• CDM/JI Methodologies
• Gold Standard CDM
• Gold Standard VER (V-GS)
• Voluntary Carbon Standard (VCS)
• VER Standard (TUV)
• Chicago Climate Exchange (CCX) Offset Projects
• INCIS Voluntary Offset Standard
• ISO 14064
• WRI WBCSD GHG Protocol
• Green-e Standard (certifies other standards)
• Plan Vivo
• Millennium Development Goal (MDG) Carbon
• Social Carbon
• Carbon Neutral Protocol
• compliance

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Voluntary Market Drivers

• Buyers
• Corporates, Institutions (World Bank),
  Governments, NGOs, Individuals
• Prepare for future regulation
• Learn about carbon markets
• Internal corporate responsibility / environmental
  goals
• Brand differentiation
• Developing carbon-neutral product and services
• SellersProject developers, wholesalers,
  aggregators, retailers
• Lower transaction costs (less expensive to
  develop small projects)
• Shorter time frames from project idea to credit
  issuance
• Allows for development / sale of project types
  and geographies poorly represented under the CDM
  (ie. forestry, Africa etc.)
• More flexibility in terms of development
  assistance and foreign ownership (China)

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Voluntary Market Prices by Project Type
(USD/tonne)
(Source State of the Voluntary Carbon Markets
2007, Ecosystem Marketplace and New Carbon
Finance)
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Projected Voluntary Carbon Market Volumes (Mt)
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Predicted Growth - Voluntary Carbon Market
For reference data from other markets in
2006EU-ETS 1,101CDM (primary) 450CDM
(secondary) 25New South Wales 20JI 16
(Source State of the Voluntary Carbon Markets
2007, Ecosystem Marketplace and New Carbon
Finance)

• Different Predictions for 2006
• 20-50 million tonnes (The Climate Group --
  prediction)
• 24.7 million tonnes (State of the Vol. Carbon
  Markets Report)
• 20 million tonnes (IETA / WB Report State and
  Trends 2007)
• 11 million tonnes (The Climate Trust size of
  their portfolio)
• 8 million tonnes (IETA / WB Report on Q1-3 2006)

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Voluntary Markets CSR and project investment

• VER projects provide an easier route to building
  capacity in new regions and sectors
• VER market is insulated from market risk in the
  international post-Kyoto negotiations. There will
  always be a voluntary market if compliance market
  collapses
• CSR demand driver leads to incentive for high
  quality projects with greater benefits for host
  country
• Limiting VER supply restricts options for least
  developed countries in the Commonwealth

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Questions

• Thank You
• andrew.prag_at_camcoglobal.com
• Tel. [phone]