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DIFC Week - Carbon Markets and Trading
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DIFC Week - Carbon Markets and Trading

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Presentation given by Rod Beckstrom at DIFC Week event in Dubai on November 19, 2007. Beckstrom is also the co-author of "The Starfish and The Spider: The Unstoppable Power of Leaderless …

Presentation given by Rod Beckstrom at DIFC Week event in Dubai on November 19, 2007. Beckstrom is also the co-author of "The Starfish and The Spider: The Unstoppable Power of Leaderless Organizations"

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  • 1. Carbon Markets & Trading Rod Beckstrom Chairman, TWIKI.NET
  • 2. Goals of Session
    • Science
    • Dimensions
    • Policies & Markets
    • How to Create Carbon Credits
    • How to Trade Carbon Credits
    • How to Create a GCC Market
  • 3. Science
  • 4.  
  • 5.  
  • 6.  
  • 7. Question
    • What planet taught us about
    • global warming?
      • Ceres
      • Mercury
      • Mars
      • Venus
  • 8. 96.5% CO2
  • 9.  
  • 10. 0.038% CO2 0.0005 % ^
  • 11. CO2 Rising
    • CO2 levels
    • 1830 0.028 %
    • 0.038%
    • 0.0005 % ^ annual
    • 0.085%
  • 12. CO2 Cycle
  • 13. Scientific Bodies Concerned
    • NASA
    • IPCC
    • NOAH
    • Royal Society
    • Academie de Science
    • Science Council of Japan
    • EPA
  • 14. Greenhouse Gases CH4 CO2 PFCs HFCs SF6 310x 11,000 x 12,000 x 19 x CO2 Equivalents is Gold Standard 22,000 x N20
  • 15. Long Term Trend
  • 16. Temperatures Rising
  • 17. ?
  • 18. Other Global Problems
    • Ozone hole
    • Acid Rain
  • 19. Ozone Hole
  • 20. Ozone Hole
    • Montreal Protocol
  • 21. Acid Rain Acid Rain
  • 22. Acid Rain - Cap and Trade Further Reductions Cap
  • 23. SO2 Emissions in Europe
  • 24. Acid Rain - SO2 Market
  • 25. Acid Rain Acid Rain Declines Because of Successful SO2 Reductions Market
  • 26. Mission Po$$ible !
  • 27. Dimensions
  • 28. 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
  • 29. Per Capital Footprints
  • 30. Where is it Coming From? Prepared by Robert A Rohde Data source: Carbon Dioxide Information Analysis Center
  • 31. Cumulative Footprints
  • 32. Question Do you think the USA should take responsibility and accept a binding carbon cap? 1) yes 2) no 3) maybe
  • 33. Let’s Get Personal
  • 34. Size Your Carbon Footprint calculate your personal carbon footprint Home sq. meter (00) ____ x 6 = _______ You drive km (000) ____ 0.25 = _______ You fly km (000) ____ x .2 = _______ Your Total Tons ________
  • 35. Question How large is your personal carbon footprint? 1) 15 2) 25 3) 50 4) 100+ tons
  • 36. GCC CO2 Footprints Country Tons Per Capita UAE 150M 38 Qatar 53M 69 Kuwait 100M 38 KSA 300 M 13 USA 6,600 M 20 India 1,400 M 1
  • 37. Question Should GCC states consider having a carbon cap? 1) yes 2) no 3) maybe
  • 38. How Much CO2 in a Gallon?
    • Pounds weight of a gallon 6.3
    • % carbon molecules 87%
    • Pounds of carbon ________
    • Multiply by CO2 weight 44/12 3.7
    • Pounds per gallon ________
  • 39. Some Basic Measures
    • One gallon generates 20 lbs
    • If car gets 20 mpg- 1 lb. of CO2 per mile
    • 110 gallons = 1 metric ton of CO2
    • 500 tons per $1M production is global average
    • 890 bls of CO2 per barrel of oil
    • 1.7 lbs of CO2 from Kwh electricity
  • 40. Policies & Markets
  • 41. Kyoto Market
  • 42. Kyoto Market - Capped Buyers
  • 43. Kyoto Market - Capped Buyers
  • 44. Centralized Policy Creates Market Incentives for Decentralized Solutions
  • 45. Economic Cost
    • In 50 years…
    • Inaction could cost 20% of GDP
    • 50% chance of 5 degree Celsius rise
    • Cost of balancing would cost only 1%
          • Sir Nicholas Stern
          • UK Economist
          • October 2006, Stern Report
  • 46. Kyoto Post 2012?
  • 47. How to Create Carbon Credits
  • 48. Creating Offsets
    • Govs allocate allowances (NAP)
    • Co A reduces below it’s target
    • Sells extra offsets to Co. B
  • 49. How to Create Offsets JI CDM Allowances from
  • 50. Profiting from Credits
    • Trading
    • Investing
    • Creating Offsets (Certificates)
  • 51. How to Trade Carbon Credits
  • 52. Two Types of Trading
    • Exchange traded (allowances)
    Exchange Buyer Seller $ $ Allowance Allowance Buyer Seller $ Carbon Offset Over the Counter (OTC)
  • 53. Carbon Market CDM CERs VERs EUAs CA CCX RGGI .14 BN Clean Development Mechanism GCC, etc. $24 BN $5.2 BN Trading Volumes from World Bank 2007 April report. JI ERUs .03 BN California For Kyoto Capped Countries Only Voluntary EEX EUAs Futures
  • 54. Carbon Credits Value? EUA CO2 price Nov 19, 2007 = 22.5 Euro or $33
  • 55. How to Create Carbon Credits
  • 56. OTC Project Development
    • Developer
    Buyer Seller $ Carbon Offset Over the Counter (OTC) Example $ and Offsets UNFCC Project Approvals Advisor
  • 57. CDM Project Approval Flow
  • 58. unfccc.int
  • 59. Approved UNFCC Methods
    • Windfarms
    • Landfill Methane
    • Farm methane
    • Sewage plants
    • Cogeneration
    • Solar
    • Fertilizer plants - N2O
    • For a full list see unfccc.int
  • 60. Leading CDM Projects
  • 61. CDM by Countries
  • 62. CDM Market Participants
  • 63. Regional Kyoto - DNA’s
    • UAE - Mr. Majid Ali Al Mansouri, Env. Agency
    • Qatar - Mr. Khalid Ghanim Al-Ali, Env. & Nat. Res.
    • Bahrain - Prof. Dr. Ismail Mohammed Al Madani, Env. and Wildlife Protection
    • Kuwait - Dr. Jasem M. Al-Besharah, EPA
    • Egypt - Dr. El-Sayed Sabry Mansour, EEAA
    • Pakistan - Mr. Kiyaz Hayat, Ministry of Env.
    • Kingdom of Saudi Arabia- not appointed
    • Full DNA list: http://cdm.unfccc.int/DNA/index.html
  • 64. Sample Projects
    • Landfill waste
    • Agricultural methane caputre
    • Sewage plants
    • Energy Efficiency
    • Solar electric
    • Solar thermal
  • 65. Pak Arab Fertilizer Analysis
    • Ammonium Fertilizer Plan
    • Also make nitric acid
    • Privatized 2005
    • Methodology AM0028 ver. 1 - Catalytic N2O destruction in the tail gas of Nitric Acid Plants
    • 1.0 M tons of CO2 equivalent
    • Phase I live April 2007
    • 400K Tons per annum
    • Upfront Cost $10M, $1M per annum energy
    • Value?
    • Could be valid for 21 years
  • 66. Sequestration Project Analysis
    • Gas sequestration
      • Petronas Bintulu, Malaysia
      • White Tiger Oil field, Vietnam
      • BP, Statoil, Sonatrach, Salah, Algeria
      • Qatar Gas
  • 67. Wind Farm Analysis
  • 68. Wind Farm Analysis
  • 69. Gas Recovery
    • Al Shaheen -Oil Field
      • Qatar
      • Gas from oil field was flared
      • Now used for power
      • 2.5 M tons annual CERs
    • Contra Case
      • Abu Dhabi methane flaring
      • No registration- no credits
  • 70. Other Ways to Make Money
    • Green products
    • Zero Carbon Projects
    • Green Cities
    • Green Buildings
    • Conservation
    • Green Portfolios
    • Consulting businesses
    • Add green services
  • 71. Green Products
  • 72. IT Energy Savings
    • Computer monitor shut offs
    • Consider energy usage at purchase time
    • Power management for all systems
    • Virtualization software reduces servers
    • New power supplies
    • More videoconferencing, less travel
    • More in each specific industry
    • Calculate CO2 from Kwh bills
  • 73. STARFISH?
  • 74. How to Create a GCC Market Can the DIFC Create a Carbon Exchange?
  • 75. Ingredients for Exchange
    • Binding Cap
    • Local allowances
    • Could be unique or linked market
    • Could also be a Kyoto cap
    • Thereby develop local intellectual capita
    • Dubai, UAE or another state could become regional leader
  • 76. Cap Locally for Exchange
    • Kyoto or regional binding cap
    • Tradable allowances in region
    • Active NGO’s
    • Active carbon market participants
      • Developers
      • Consultants
      • Brokers/bankers
  • 77. Need Caps Globally by 2013
    • Kyoto or regional binding cap
    • Tradable allowances in region
    • Active NGO’s
    • Active carbon market participants
      • Developers
      • Consultants
      • Brokers/bankers
    To Solve Our Global Problem
  • 78. Dubai and DIFC Can Help Lead the Way… …in carbon projects, capping and trading.
  • 79. Question Do you think Dubai and DIFC should help lead the way? 1) yes 2) no 3) maybe
  • 80. Goals of Session
    • Science
    • Dimensions
    • Policies & Markets
    • How to Create Carbon Credits
    • How Carbon Trading Works
    • How to Create a GCC Market
  • 81.
    • Rod Beckstrom More info
    • www. beckstrom .com globalwarming.twiki.net