This document discusses carbon trading as a mechanism under the Kyoto Protocol to reduce greenhouse gas emissions. It defines carbon trading as a cap-and-trade program where countries are given an emissions cap and can trade excess allowances. The document outlines the Kyoto Protocol commitments, describes the EU Emissions Trading Scheme in its phases, and discusses benefits like alternative energy incentives but also disadvantages like a lack of centralized oversight.
Australian ETS and carbon policy: How this will affect your businessDarrin Bird
Presentation by Darrin Bird CEO Carbonza to the Backpacker Operators Association of NSW regarding the upcoming Emission Trading scheme and operating a business in a carbon constrained society
This webinar will review the various mechanisms agreed in the Kyoto Protocol with a particular focus on Clean Development Mechanism. The value at each stage of the CDM project will be explained, and market prices for carbon credits will be analysed.
In order to illustrate this type of project, real case studies carried out by Deuman will be discussed. Voluntary carbon credits will also be analysed.
http://www.leonardo-energy.org/webinar-carbon-market-and-cdm-projects
This presenation outlines a CO2 trading framework to that tries to address issues with the current Cap and Trade and emissions taxing solutions.
This is acheived by initiating a carbon reserve that is funded by a tax on carbon credits traded, rather than carbon emissions.
The carbon reserve acts as a powerful tool to drive desired policy outcomes.
Carbon markets 101 introduces the market mechanisms under the Kyoto Protocol and related initiatives. It helps executives and managers understand emerging business issues around carbon trading, emission reduction projects and carbon monitoring.
The earliest breakthrough in soil carbon trading has occurred in regional Australia. Louisa Kiely from Carbon Farmers of Australia explains how they work.
Australian ETS and carbon policy: How this will affect your businessDarrin Bird
Presentation by Darrin Bird CEO Carbonza to the Backpacker Operators Association of NSW regarding the upcoming Emission Trading scheme and operating a business in a carbon constrained society
This webinar will review the various mechanisms agreed in the Kyoto Protocol with a particular focus on Clean Development Mechanism. The value at each stage of the CDM project will be explained, and market prices for carbon credits will be analysed.
In order to illustrate this type of project, real case studies carried out by Deuman will be discussed. Voluntary carbon credits will also be analysed.
http://www.leonardo-energy.org/webinar-carbon-market-and-cdm-projects
This presenation outlines a CO2 trading framework to that tries to address issues with the current Cap and Trade and emissions taxing solutions.
This is acheived by initiating a carbon reserve that is funded by a tax on carbon credits traded, rather than carbon emissions.
The carbon reserve acts as a powerful tool to drive desired policy outcomes.
Carbon markets 101 introduces the market mechanisms under the Kyoto Protocol and related initiatives. It helps executives and managers understand emerging business issues around carbon trading, emission reduction projects and carbon monitoring.
The earliest breakthrough in soil carbon trading has occurred in regional Australia. Louisa Kiely from Carbon Farmers of Australia explains how they work.
Presentaion on carbon credits and kyoto protocolAnkit Agrawal
To combat these changes globally, Kyoto Protocol was created and has been
agreed upon by 170 countries so far, committing themselves to reduce Green
House Gas Emissions and improve Energy Efficiency.
• The Kyoto Protocol envisages reduction of Green House Gases by 5.2% in the
period 2008-12.
• New System of Carbon Credits is Introduced in the texts of Kyoto Protocol is
being formalised to bring more awareness in Industries to reduce their annual
carbon emission by awarding monetary value to reduced emission taking us
towards eco-friendly future
•Through this Presentation we are going to bring into focus
these two main International steps on combating the new evil
“Global Warming”.
2. CONTENTS:
Highlights of KYOTO PROTOCOL
Definition of CARBON TRADING
Carbon CAP-TRADE program
Carbon Offsetting
Implementation Mechanism of Carbon Trading
Case Study of Carbon Trading in European Union
Benefits of Carbon Trading
Disadvantages of Carbon Trading
Conclusion
3. The Kyoto Protocol
An United Nation- led international agreement reached in 1997 in
Kyoto, Japan under UNFCCC
Put to force on February 2005.
To address the problems of climate change and the reduction of greenhouse gas
emissions.
Results: March towards a Green Planet
Commitment to move away from fossil fuel energy sources (oil, gas and coal) to
renewable sources of energy viz. hydro, wind, solar power by 38 signatory countries
Commitment to reduce greenhouse gas emissions by 2008-2012 to 5.2 percent below
1990 levels.(legally binding protocol)
Targets for greenhouse gas emissions reduction were established for
each industrialized country. (Annex 1 countries)
Developing countries (non-Annex 1 countries) including China and
India were asked to set voluntary targets for greenhouse gas emissions.
Highlights of KYOTO Protocol:
4. CARBON TRADING
CARBON CAP-TRADE PROGRAM
CARBON CAP-TRADE Program
CAP- Assignment of an upper threshold limit on the amount of pollutant that can be
emitted (measured in Assigned Amount Units or AAUs) by a country.
Emission permits or equivalent number of allowances or credits are issued to emit a
specific amount of carbon dioxide (cap) to the country.
1 credit= 1 ton of carbon dioxide
TRADE- the transfer or trade of allowances
Excess or unused allowances/credits can be traded to the countries whose emissions
have exceeded their assigned cap.
The purchased allowances can be used to increase the allowance limit by the
purchasing country.
Countries whose emissions are less than their assigned amount or the CAP can
sell or TRADE the excess amount to countries whose emissions have exceeded
their assigned amount.
CARBON
OFFSETTING
5. Offset Credits for eco-friendly technologies are purchased by developed
nations to avoid or substitute reduction in their own emission.
Investments in green technologies and harness alternative forms of energy in the
developing nations.
CARBON OFFSETTING:
Example:
•A landowner plants an acre of field and can generate credits for how much Carbon Dioxide
is reduced as a result of the plantation
•The credits are known as Offset Credits
•The landowner can sell the offset credits to the potential investors or industrial facilities
•The facility can buy the offset credits and count it in favor of its emission responsibilities.
•It attests that the same amount of carbon dioxide is reduced in the atmosphere as a result
of the plantation process.
6. Carbon Trading Implementation Mechanisms:
• Emission Trading (ET)
Countries whose emissions are less than their assigned amount can sell the excess
amount to countries whose emissions have exceeded their assigned amount
The Assigned amounts can be defined as a tradable allowances, or commodity, and this
free market is known as the “CARBON MARKET."
• Clean Development Mechanism (CDM)
Developed countries can fund emission reduction projects (e.g. Solar energy, wind energy
and other green technologies) in developing nations that did not sign Kyoto Protocol.
In exchange, the developed countries earn legally recognized emission credits called CERs
(Certified Emission Reduction) to offset their emission obligations.
• Joint implementation (JI)
Developed countries can implement emission reduction projects in another developed or
developing country and earn Emission Reduction Units (ERUs)
ERUs can be used to meet the carbon allowance or can be sold
in the market.
7. CASE STUDY: EUROPEAN UNION EMISSION TRADING SCHEME
The EUROPEAN UNION EMISSION SCHEME has been divided into 3 phases:
Phase I (2005-2007)
Phase II (2008-2012)
Phase III (2013-2020)
Highlights of Phase I: (2005-2007)
15 member countries participated
Over allocation of allowances and
distribution of free permits at the
beginning
From May 2006 to December of
2007, carbon prices dropped from
€30/ton to €0.03/ton.
Overall emissions increased by 1.9%
between 2005 and 2007
For each EU ETS Phase, the total quantity to be allocated is defined by National
Allocation Plan (NAP)
8. Highlights of Phase II : 2008-2012
CDM and JI were introduced
An average allowance cut of nearly 2.6% below the 2005 emission levels
The carbon price increased to over 20 Euro/tCO2 in the first half of 2008 but decayed to
13 Euro/tCO2 in the first half of 2009
The assigned cap is expected to result in an emission reduction in 2010 of about 2.4%
compared to expected emissions without the cap (business-as-usual emissions)
mTonnes
9. Highlights of Phase III: ( 2013-2020)
The European Commission has proposed a number of changes:
Tighter limits on the use of offsets
Replacing allowances by auctioning
Establishment of an overall fixed cap and then assignment to the members
Projections for 2020:
20% cut in EU emissions relative to 1990 levels with carbon price of around or below 30
Euro/tCO2
10. Benefits of CARBON TRADING:
• Reduction in green house gas emission
Stringency in the cap or the upper threshold limit is contributing
to lower emission over the years
• Source of revenue for developing nations
Developing nations can earn revenue by selling carbon credits to countries with
more fossil fuel demand.
• Supports a free market system
The carbon trade market is without any economic intervention and regulation by
government except to regulate against force or fraud
• Impetus for Alternative sources of energy or green
technology
Threshold limits encourages industries to harness alternative sources of energy
and invest in green technology globally or in indigenous research.
11. Disadvantages of CARBON TRADING:
• Right to pollute
Industries in the ratified nations are purchasing legal rights to pollute the
atmosphere
• Slow process
Industries are opting the easy way– purchase more allowances than
implementing greener technologies
• Lack of centralized system or global framework
Absence of a centralized and accepted global standards/act are missing
• No effective carbon reduction in the atmosphere
Leads to carbon reduction in one place and results in carbon emission in some
other place
12. Carbon Trading brings forth financial incentives to reduce carbon dioxide
emission and implement eco-friendly/green technologies.
Stringent assignment of the caps or the upper threshold limits over the years can
ameliorate the green house gas emission problem.
The alternative/renewable sources of energy like wind, solar and hydro are
supposed to get financial boost to substitute fossil fuels.
Absence of a standard measuring technique in carbon sequestration or storage
questions the feasibility of Carbon Offsetting techniques.
Presently, the market is primarily driven by financial interest or gains by the
investment farms as opposed to seeking environmental remedy.
CONCLUSION: