Trading Carbon Credits – Get your FREE Information Pack on Trading Carbon Credits

Posted on March 24, 2010 by admin

Trading Carbon Credits

Trading carbon credits may be classified as either offset emissions or emission allowance. In connection with this, there are 3 primary mechanisms that fall under the country’s protocol as well as operators in developed countries can utilize in order to accumulate reduction credits in greenhouse gasses.

3 Mechanisms Involved in Trading Carbon Credits

The first mechanism in trading carbon credits is the JI or also called as joint implementation. This is the mechanism that will allow operators in a developing country having high greenhouse gas reduction cost to get an access to such credits. This is usually done by means of developing projects intended for the other developed countries.

CDM or also called as Clean Development Mechanism is also one of the three mechanisms concerning trading carbon credits. In this mechanism, the operators in the developed nations are allowed to make sponsorship with some projects in the other countries that are just developing. These are the countries where the greenhouse gas reduction cost is lower but the effects are just similar to the first country. In this mechanism, dual benefits are present. To the developed nations, they are getting credits. On the other hand, the developing country is benefited by the investments in terms of clean technology.

The final and third mechanism is called IET or International Emissions Trading. Nations with shortfall may give it a hit in covering themselves by means of trading carbon credits internationally. Based from the protocol, nations having capped emission commitments can purchase from nations that have surplus credits.

Reward-Penalty Strategy

The general objective of trading carbon credits is to motivate companies from different places around the world to reduce or limit the emissions of their greenhouse gasses. Those companies that are exceeding when it comes to their caps have the option to sell the unutilized credits to the market or to the other companies directly. Those companies who do not exceed in their cap are given with appropriate reward. On the other hand, those companies who are exceeding the cap are given the ample penalty that is due them.

The reward-penalty system imposed is somehow a motivational tool in order for companies to make proper action when it comes to maintaining the right level of carbon cap. Just in case all of the companies from across the globe will look upon this strategy, there will definitely be decrease in the effects that the world will suffer from greenhouse gasses.

Advantages of Trading Carbon Credits

Generally, there are so many benefits that you can get out of trading carbon credits. Initially, companies can do their share in preserving the condition of the ozone layer. Because of the release of some greenhouse gases, these make the ozone layer becomes thinner and thinner. Thus, it results to heating of the world because of the penetration of the excess sunlight.

People may also benefit from trading carbon credits. In connection with the aforementioned benefits, trading carbon credits has become a very profitable investment opportunity.

Some of the larger investment banks such as JP Morgan, Morgan Stanley, Goldman Sachs and Barclays Capital, have already established Trading Carbon Credits departments and have made considerable carbon credit investments.

Click here to get your FREE Trading Carbon Credits Information Pack

Carbon Credits Trading: An Introduction for More Information sign up for your FREE Carbon Credits Trading Information Pack

Posted on October 24, 2010 by admin

Carbon Credits Trading: An Introduction

Carbon Credits Trading or Emission Trading refers to trading in Greenhouse gas emission certificates within the legal framework. It is a market-based scheme for environmental improvement that allows parties to buy and sell permits for emissions or credits for reductions. Carbon Credits Trading allows established emission goals to be met in the most cost-effective way by letting the market determine the lowest-cost pollution reducing opportunities.

Carbon Credits Trading Schemes

Under such Carbon Credits Trading schemes, the environmental regulator first determines the total acceptable emissions and then divides this total into tradable units (often referred to as credits or permits). These units are then allocated to scheme participants with dual purpose while allowing the flexibility to meet their emission targets according to their own strategy.

Participants in Carbon Credits Trading schemes who emit pollutants must obtain sufficient tradable units to compensate for their emissions.

Participants in Carbon Credits Trading schemes who reduce emissions may have surplus units that they can sell to others, who find emission reduction more expensive or difficult

Carbon Credits trading Historical Perspective

Surprisingly Carbon Credits trading schemes were first developed in the 1960s and 1970s in the United States, motivated partly by dissatisfaction with the cost of the regulatory approaches to pollution control, they were first used to price, with a view to reduce nitrogen and sulphur oxides (NOx and SOx) emissions in the United States electricity industry.

The Kyoto Protocol and Carbon Credits Trading

The Kyoto Protocol is an amendment to the international treaty of United Nations Framework Convention on Climate Changes (UNFCCC) which is a legally binding agreement under which more than 169 industrialized countries have agreed to reduce greenhouse gas emissions to a level of 5.4% by 2012 keeping 1990 as the base.

The objective of the protocol is the “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Under this protocol, about 38 industrialized countries and the European Union forms a part of Annex-1 list, the remaining are part of Non–Annex 1 list of countries.

The Carbon Credits Trading Market is the brainchild of the Kyoto Protocol for controlling greenhouse gas emissions. Green house gases are emitted mainly by burning oil, gas, and coal that are resulting in perilous climate change.

Each carbon credit traded represents one ton of carbon dioxide either removed from the atmosphere or saved from being emitted.

UK shale gas projections “wildly optimistic”, campaigners say

Posted on May 22, 2013 by admin

Campaigners have decried as “wildly optimistic” a report claiming shale gas is poised to make a big contribution to the growth of the UK economy.

A new paper by the Institute of Directors, sponsored by shale gas firm Cuadrilla Resources, says pressing ahead with exploiting shale gas could create a £3.7bn industry supporting 74,000 jobs and generating significant revenues for the Treasury.

The IOD also claims domestic shale could reduce the country’s emissions if it is used to replace coal power, and argues that 100 two acres sites, each supporting 40 horizontal wells, could supply around one third of the UK’s peak gas demand.

Chancellor George Osborne is determined to accelerate development of the embryonic shale gas industry and last week the Department of Energy and Climate Change (DECC) confirmed 330 onshore oil and gas licences have already been granted.

A further boost to the industry is expected in the coming months when the government finalises the details of promised tax breaks and announces plans to compensate communities impacted by fracking sites.

But opponents of such developments say that the environmental damage caused by extraction outweighs the benefits of exploiting a relatively secure energy source, while researchers have suggested much of the reserves will have to stay in the ground if the UK is to meet its legally-binding climate targets.

Leila Deen, energy campaigner at Greenpeace, dismissed the IOD report’s predictions as “wildly optimistic” and said it had failed to address the issue of whether shale gas will bring down bills.

“The IOD’s forecasts are based on mind-boggling and hopelessly misleading estimates of gas extraction using technology so far not deployed at this scale anywhere on the planet,” she said. “It also assumes a level of gas use that’s incompatible with the recommendations of government climate advisors.

“With experts from Deutche Bank to BP to the Energy Secretary Ed Davey agreeing UK shale gas will not reduce gas prices for consumers, fracking across England seems like a lot of pain for very little gain.”

Shale gas has been proposed as a “bridging fuel” that can reduce emissions by replacing coal while providing more time for countries to install cost effective renewable energy technologies and develop carbon capture and storage (CCS) systems.

The UK government has long-championed CCS and in March’s Budget confirmed two preferred bidders for its £1bn CCS commercialisation competition.

A new study programme also announced today is set to aid the cost-effective development of offshore storage sites for carbon dioxide produced by power plants and industry.

The CO2MultiStore project brings together experts from academia, government and industry, who have signed a collaborative research agreement to investigate how CO2 storage sites can be developed in the vast sandstone deposits off the UK coast.

Researchers will attempt to predict the effect of injecting CO2 into two potential sites within an extensive sandstone formation more than half a mile beneath the sea bed east of Scotland.

The study will use 3D computer models created from data collected for oil and gas exploration and will make use of the industry experience of Shell and The Crown Estate, which along with the Scottish Government and Scottish Enterprise, are supporting the project.

The results of the latest study are expected in spring 2014 and it is hoped it will go some way to reassuring investors the sector is tecnically and economically viable, despite the high capital costs demanded by the technology.

“This project forms a key piece in realising the vast storage potential of the central North Sea,” said David Rennie, international sector head of oil and gas, thermal generation, and CCS at Scottish Enterprise.

“By addressing the issues around multiple/shared site commercial storage of CO2, we can reassure investors and help realise opportunities for new and existing developers.”

Watch Corin Taylor, senior economic adviser at the IOD, explain the findings of the report:

7 days – BusinessGreen

Businesses urge EU to adopt energy efficiency goals

Posted on May 22, 2013 by admin

Siemens, Unilever and Alstom are among a group of leading companies calling on EU leaders to support ambitious energy efficiency legislation that would help to drive energy-saving investments beyond 2020.

In an open letter the companies from the construction, transport, IT and chemicals sectors say adopting a strong energy efficiency target and policy regime for the 2020s would drive growth and job opportunities, as well as improve EU competitiveness, rather than slow the economic recovery.

“The higher the ambition for 2030, the better it will be for the economy and we, as industry representatives, will be doing our utmost to seize the opportunity,” the letter says. “It would therefore be a mistake to see a trade-off between the need for a climate and energy regulatory framework for 2030 and the need to restore economic competitiveness.”

The companies said that along with many other businesses and industrial sectors they are “strongly supportive” of legislation that would require “high potential” areas such as buildings and cities to deliver energy efficiency improvements, telling European leaders that CO2 targets are “not the only driver of low-carbon investments”.

The letter, addressed to European Council president Herman Van Rompuy and Enda Kenny, prime minister of Ireland, which holds the EU presidency, comes as ministers meet in Brussels today to discuss energy’s role in promoting growth jobs and competitiveness.

Other signatories include executives from Philips, Schneider Electric, Panasonic, Opower, Kingspan, Knauf Insulation, 3M, Danfoss and 1E.

In the letter the companies claim 30 per cent energy savings by 2030 would increase European GDP by a minimum of one per cent and would create 1.5 million direct jobs.

Energy efficiency measures could also reduce the EU’s current €573bn energy import bill by 40 per cent, leading to a cut in energy costs of €50bn by 2030, they add.

Monica Frassoni, president of the European Alliance to Save Energy (EASE), which co-ordinated the letter, said Europe needs “strategic investments” in sectors that can deliver sustainable growth.

“While different industries will have differing preferences for the exact mix of technologies, European companies stand united in their belief that a long-term regulatory framework for energy efficiency at European level will create the right conditions for European companies to invest,” she added.

“If Europe’s leaders give energy efficiency the priority it deserves at [the] European Council discussion on the future of the EU’s energy policy, they will enable the whole of Europe to tap into its potential in terms of growth, local job creation and increased competitiveness.”

The letter is the latest development in a long-running debate within Brussels about the post-2020 energy and climate policy landscape. MEPs and member states are divided on the scale of the emission reduction target the EU plans to set for 2030 and whether the over-arching target should be accompanied by specific goals for energy efficiency and renewables.

The news also comes as the UK government kicked off a consultation asking businesses if the country is benefitting from EU climate and environment policies.

7 days – BusinessGreen

Green Deal needs targets to be effective, warn MPs

Posted on May 22, 2013 by admin

Ministers need to have a clearer idea of what they hope to achieve with the Green Deal or risk the flagship energy efficiency policy becoming derailed, MPs will say today.

A new report by the influential Energy and Climate Change Committee is broadly supportive of the programme, which provides property owners with finance to cover the upfront cost of installing measures such as loft insulation or efficient boilers.

But it warns the scheme faces a number of challenges that could undermine its success, including concerns over whether tenants will be able to secure permission from landlords for Green Deal improvements and fears that the cost of finance will have to be lowered to drive adoption of the scheme.

The Committee says that if initial take up levels are low, it will be important that the government takes steps to understand the barriers to adoption so the policy can be improved. It also criticises the failure of the government to set clear targets for take up of the scheme.

“Our role is to hold Government to account. But it’s impossible to do this if the Government itself cannot explain precisely what it is hoping to achieve through its policies,” said committee chair Tim Yeo.

“It’s unacceptable that, three years in to the life of this Parliament, Ministers are unable to explain what success would look like of one of the Coalition’s flagship policies. It is only right that such a high profile policy is subject to proper scrutiny so that corrective measures can be put in place quickly if it is failing to deliver.”

The government released data earlier this month showing around 19,000 households have been assessed for improvements under the Green Deal, but figures on how many have actually installed measures have yet to be released.

On launching the Green Deal, an accompanying impact report predicted one million packages would be taken up by March 2015, but officials have consistently argued the programme is designed to be market-led so setting a target is not appropriate.

However, the committee wants the government to publish more information showing how the Green Deal is progressing and has called on Ministers to collaborate with research organisations to improve understanding of whether the scheme is working effectively.

It also confirmed that it plans to monitor progress itself, focusing on seven areas: public awareness and communications; take-up levels; energy and carbon savings; financial savings and value for money; access to the Green Deal and Energy Company Obligation; customer satisfaction; and supply chain and job creation.

Paul King, chief executive of the UK Green Building Council, said the government should work with the private sector to produce a clear routemap for retrofitting inefficient UK homes and detailing what needs to be achieved through the Green Deal scheme and by when.

This would give the industry “confidence to invest in a new market of energy services and retrofit solutions”, he said.

King added that other methods of driving take-up should also be considered, arguing that the “Treasury should listen to demands for consumer incentives, such as stamp duty banding being linked to energy efficiency, that would give the scheme a tremendous boost both now and in the long-term”.

7 days – BusinessGreen

Defra hosts waste industry growth summit

Posted on May 22, 2013 by admin

Defra will today seek to bring together investors, bankers, entrepreneurs and waste management firms at a “growth summit” designed to help identify how to accelerate investment in the waste, recycling, and resource management industry.

Hosted by Environment Secretary Owen Paterson the meeting is designed to explore how government and industry can build on the recent success of the waste sector, which has recorded growth rates of between three and four per cent throughout the economic downturn.

The industry is now worth £12bn a year and employs over 100,000 people, and Paterson said he was keen to attract more investment to a sector that is not only critical to meeting the UK’s various environmental target but also offers significant export opportunities.

“There is a huge global market in waste and recycling and I want to see UK businesses leading the way on this,” he said in a statement.

“Dealing with waste and recycling properly is good for business as well as the environment and has the potential to boost economic growth and create jobs. To make it happen I want to break down the barriers businesses face to ensure they can compete and lead in the global race.”

The UK has delivered drastic improvements in its recycling rates over the past decade, but there is evidence that progress has stalled in recent years, as well as concerns that over £5bn worth of recyclable materials are exported each year, primarily as a result of a shortage of recycling capacity in the UK.

Dr Liz Goodwin, chief executive at government-backed advisory body WRAP, welcomed the attempt to bring developers and investors together.

“A resource efficient economy offers substantial growth opportunities for UK businesses, so investment in the sector needs active encouragement through industry engagement,” she said. “WRAP has years of experience working with investors in this sector, and the Investor Symposium offers industry leaders a vital opportunity to discuss the challenges and solutions to unlock economic growth.”

7 days – BusinessGreen

Solar Energy Industries Association & Electricity Storage Association Buddy Up

Posted on May 21, 2013 by admin

Solar power and energy storage are a couple made in heaven, like CleanTechnica and you. With both growing fast (solar & energy storage), two of the trade associations of each have partnered up. Here’s the announcement released today from the US Solar Energy Industries Association:

solar energy industry association

WASHINGTON, DC – The Solar Energy Industries Association (SEIA), the national trade association for the U.S. solar energy industry, and the Electricity Storage Association (ESA), the international trade association promoting the commercialization and deployment of energy storage systems, today announced a new partnership to help grow solar energy markets and accelerate the deployment of grid-scale energy storage systems across the country, which will help modernize the electricity grid and make it more efficient, balanced and cost-effective.

Under the new partnership, SEIA and ESA will collaborate on communication efforts, events and policy activities promoting solar energy and energy storage. The expansion of each organization’s activities to include both sets of technologies furthers the missions of both organizations and directly assists their common members—solar product and energy storage manufacturers.

ESA celebrated today’s announcement at its annual conference in Santa Clara, California.

“This natural alignment of the Solar and Energy Storage industries is about modernizing our energy system for the 21st century by focusing on reliability while making the grid clean, efficient and cost-effective. Having worked together on the

Energy Storage Investment Tax Credit that is gaining support in Congress, we are confident this partnership will help highlight the value proposition of energy storage for integrating renewables into our electricity system. We look forward to working with SEIA on these and other issues going forward,” said Chris Shelton, Chairman of ESA.

“Large scale deployment of renewable energy is proving that we can achieve high levels of renewable generation without sacrificing reliability,” said Arno Harris, CEO of Recurrent Energy and chairman of the SEIA board. “Focus on development of electricity storage will only further solidify solar in the mainstream energy mix.”

“SEIA is excited to work with ESA to help achieve mutual collaborative goals to better support our respective members and expand the U.S. solar energy market,” said SEIA president and CEO Rhone Resch. “Electricity storage is an area of innovation and growth within the solar industry. With the addition of storage, the possibilities for solar are endless.”

Today, the U.S. has 7,700 MW of installed solar electric capacity – enough to power more than 1.2 million American homes – and 40 percent of our existing capacity, or 3,300 MW, was installed last year alone, making solar one of the fastest-growing industries in the nation. America’s solar industry now employs nearly 120,000 workers at 5,600 companies – most of which are small businesses spread across every state in the union.

Energy storage is growing at a similarly quick pace; storage already accounts for 24,000 MWh of installed energy storage capacity (majority of which is pumped hydroelectricity) that serves Americans in almost every state. As outages from unreliable portions of our grid cost Americans $ 130 billion annually, more and more leaders are turning to storage. By 2017, grid-scale energy storage will reach an astounding 185.4 gigawatt-hours and represent a $ 113.5 billion incremental revenue opportunity for an industry that currently generated sales of $ 50 to $ 60 billion a year.

About SEIA®:

Established in 1974, the Solar Energy Industries Association® is the national trade association of the U.S. solar energy industry. Through advocacy and education, SEIA and its 1,000 member companies are building a strong solar industry to power America. As the voice of the industry, SEIA works to make solar a mainstream and significant energy source by expanding markets, removing market barriers, strengthening the industry and educating the public on the benefits of solar energy. www.seia.org

About ESA: The Electricity Storage Association, originally founded in 1991, is an international trade association established to promote the development and commercialization of competitive and reliable energy storage systems. The Association brings together electric utilities, system operators, regulators, policy makers and electricity providers to discuss the challenges facing energy storage and develop the most appropriate solutions. With hundreds of members from across the world, ESA is committed to bringing a resilient, efficient, clean and cost-effective energy storage system to modernize our grid. For more information about the Electricity Storage Association, go to www.electricitystorage.org

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