CARBON-BALANCE

WASHINGTON, Nov 23 (Reuters) - The United States will propose an emissions reduction target at a U.N. climate change summit in Copenhagen, a senior administration official said on Monday. The official also said the White House would decide in the coming days when and whether President Barack Obama would attend the December meeting. He added the emissions cut proposal would be consistent with the legislative process in the U.S. Congress. Several heads of state and government have agreed to attend the meeting but Obama has not yet confirmed his attendance.

This post marks the initial entry in a new series of postings on the climate policy discourse in the English Caribbean. These are the unedited main points; remarks made by Ambassador K. G. A. Hill at the 2009 Fourth Conference on the Environment by Jamaican Institute of Environmental Professionals. Climate change policies are but extensions of those already being formulated and implemented for sustainable development. Governments in the Caribbean ought not to lose sight of this as they organise their institutional arrangements and in deploying resources. The social, environmental, and economic policies have not resulted in the “growth” and socio-economic transformation necessary to increase public welfare. There is no “cushion” of surplus capital in the challenging period of a warming earth. Even as the Caribbean governments and their citizens prepare at the national and regional levels, the negotiating process picks up speed at the international. In the Caribbean the debate sh...

India has laid down the marker: Reuters is reporting : India will not sign up to targets to reduce its greenhouse gas emissions but will instead focus on fighting poverty and boosting economic growth, the environment minister said on Tuesday. India is one of the world’s biggest emitters alongside China, the US and Russia, and the second most populous nation. But India’s per capita emissions lag far behind rich countries and it feels the developed world should take the lead on tackling climate change. “India cannot and will not take emission reduction targets because poverty eradication and social and economic development are first and over-riding priorities,” a statement on behalf of environment minister Jairam Ramesh said. A legally binding emission reduction target endangers India’s energy conservation, food security and transport, he said. India has laid out its stance ahead of the negotiation of a climate treaty in Copenhagen in December that will replace the expiring Kyoto pact. D...

Just do It: As THOMAS L. FRIEDMAN puts it ... for all its flaws, this bill is the first comprehensive attempt by America to mitigate climate change by putting a price on carbon emissions. Rejecting this bill would have been read in the world as America voting against the reality and urgency of climate change and would have undermined clean energy initiatives everywhere. More important, my gut tells me that if the U.S. government puts a price on carbon, even a weak one, it will usher in a new mind-set among consumers, investors, farmers, innovators and entrepreneurs that in time will make a big difference... The AP's H. JOSEF HEBERT makes a strong case that : Such a law would impact how much people pay to heat, cool and light their homes (it would cost more); what automobiles they buy and drive (smaller, fuel efficient and hybrid electric); and where they will work (more "green" jobs, meaning more environmentally friendly ones).

Coming from the Right:

Here is a quick view from the republican leaning WSJ, essentially parroting the conservative concern over comprehensive environmental policy.

What a difference a year makes. The most positive sign in decades of a change in environmental policy in the US. Clear example of the dramatic effect of democratic politics on policy and a clear victory for President Obama. Oakland, Calif.-based nonprofit Green For All, which was a driving force in securing green job training funds in the American Recovery and Reinvestment Act, called the bill a significant step forward in creating a more equitable and secure country. The bill includes a $860 million allocation to the Green Jobs Act. “This legislation will not only position America at the forefront of the clean-energy economy but will also create jobs and opportunities for communities that are too often at the margins - and the smokestack end - of our current economy,” Green For All CEO Phaedra Ellis-Lamkins said in a statement . The U.S. House of Representatives narrowly passed a sweeping climate change bill today that will significantly change the way Americans use and produce energy...

BANGKOK – Selling credits for the billions of tons of carbon that are locked in Indonesia's tropical rain forests could be as profitable as converting these areas into palm oil plantations, a study released Friday found. The study, in the current issue of the peer-reviewed journal Conservation Letters, also found that conserving the 3.3 million hectares (8.2 million acres) that are slated to become plantations on Kalimantan, on the island of Borneo, would boost the region's biodiversity. The 800 proposed plantations that were studied contain 40 of the region's 46 threatened mammals including orangutans and pygmy elephants, the study found. "Our study clearly demonstrates that payments made to reduce carbon emissions from forests could also be an efficient and effective way to protect biodiversity," said Oscar Venter, a conservation biologist at the University of Queensland in Australia and the study's lead author. "We now need to see policy discussions ca...

The latest report on the Voluntary Carbon Market is out with some encouraging conclusions and findings. This report provides invaluable information on developments in the Carbon Market outside the various sanctioned and regulated carbon markets. Some key findings: Over the past several years, these markets have not only become an opportunity for citizen consumer action, but also an alternative source of carbon finance and an incubator for carbon market innovation The formation of coalitions to encourage self-regulation; and increased market transparency. The voluntary carbon markets, like any other commodity market, were not immune to the over-arching forces of the economy and regulatory developments. In 2008 the CCX overtook the OTC market in terms of tracked volume, it also overtook the OTC market in terms of growth. CCX trades tripled in 2008 (202%), whereas the OTC market grew by 26%—a clear break from the trend in 2007, when the OTC market tripled, while the CCX only doubled. The...

How can we interpret the news that the US and China have been discussing emissions reductions over secret meeting for a few months now. As the Guardian has been reporting: A high-powered group of senior Republicans and Democrats led two missions to China in the final months of the Bush administration for secret backchannel negotiations aimed at securing a deal on joint US-Chinese action on climate change, the Guardian has learned. The initiative, involving John Holdren, now the White House science adviser, and others who went on to positions in Barack Obama's administration, produced a draft agreement in March, barely two months after the Democrat assumed the presidency...The two sides began discussing ways to break through the impasse, including the possibility that China would agree to voluntary – but verifiable – reductions of greenhouse gas emissions. China has rejected the possibility of cuts as it sees that as a risk to its continued economic growth, deemed essential to li...

Waxman, Markey Announce Breakthrough on Climate Change Bill: Democrats on the House Energy and Commerce Committee have reached a deal on the most contentious aspects of cap-and-trade legislation for carbon emissions and plan to unveil the bill on Thursday, Chairman Henry Waxman (D-Calif.) said Tuesday night. “We have resolved a good number of the issues,” Waxman said after a meeting with committee Democrats, adding that the bill remains on track to clear his panel next week. Opening statements are planned for Thursday with a marathon markup beginning on Monday.

As one of the leading members of Caricom and the one with arguably the most diversified resource base it is encouraging to highligght the position Guyana has taken and expressed on the issue of deforestation , climate change and carbon Finance. Head of State Bharrat Jagdeo delivered the feature address at the Forest Carbon Finance Summit 2009 where he highlighted Guyana’s position on avoided deforestation. Avoided Deforestation is now touted as a concept where countries are paid to prevent deforestation that would otherwise occur. He said that country can play a critical part in helping to outline a successor Agreement to the Kyoto Protocol in time for the December 2009 Copenhagen Climate Conference. While acknowledging that developed countries need to have strong political will and dedication to addressing the climate issue, the Guyanese leader also pointed out the responsibility of developing countries as part of the solution, using forests as a cost effective abatement solut...

Australian Prime Minister Kevin Rudd's announcement that the country’s cap-and-trade program will to be delayed a year and will not roll out until July 2011 comes as no surprise to those who have been following the debate down-under. I Rudd's words "I believe (this) is the most sensible, rational, balanced response to a fundamental change in economic circumstances." Are the adverse economic condition solely be be blamed or has conservative politics won the debate?

Continuing on the topic of Alternative Energy and the potential of Solar Energy. An earlier Reuters report of an Israeli company wanting to prove it doesn't need constant sunshine for a solar power plant to make non-stop electricity to power off-grid communities.

Continuing on the subject of Pig Waste it appears that Pig farmers in Sweden are trialing a new network to sell the combustible gasses emitted by their fertilizer, raising cash and helping the environment according to a Reuters report:

We have yet to reach the limits of the ways and things to recycle. Pig waste has lots of potential. Half of what pigs consume is returned as waste which consist of among other things a host of toxic substances: ammonia, methane, hydrogen sulfide, carbon monoxide, cyanide, phosphorous, nitrates. Not surpising then that we are slowly but surely finding ways to use this waste in beneficial ways: Berrybank Piggery Duckweed Turns Pig Waste Into Ethanol! Maybe the Simplest Way To Produce Alternative Bio-Fuels Living with Livestock: Dealing with Pig Waste in the Philippines Here is a typical flow chart for extracting the benefits from Pig Waste !

An analysis of the scope (sectoral) distribution of registered CDM projects tells a fascinating story. As of 2009 almost 60% of these projects were in energy related industries. Less than one half of 1% was is Forestation related projects. One reason for the sectoral bias is the relative role of the energy sector in carbon emissions and by extension its resulting demand for carbon credits. From the perspective of charting a course forward for the CDM, the present sectoral distribution provides strong evidence in support of the need for more Forestation delated CDM projects.

An examination of the regional distribution of the regional distribution of registered CDM projects tells a fascinating story. As of 2009 there are 1584 registered projects under the CDM distributed over fifty-five (55) countries. Less than two percent (2%) of these projects are in Africa. Twenty six percent (26%) are in Latin America and the Caribbean. Asia and the Pacific host almost three quarters (71%) of registered CDM projects. On the evidence it appears that the global distribution of clean technology investments under the CDM follows the same broad pattern of Foreign Direct Investments.

I will be starting a series of post of the CDM: what has been achieved over the past decade. The aim is to provide some analysis of the effectiveness and efficiency of CDM in light of the flood of recent criticisms. The first post examines the scale distribution of CDM registered projects: Suffice to state that it is not as biased one would expect. Based on the most recent data from the UNFCC more than 43% of the projects registered under CDM are in fact small scale projects. In effect only about 57% of the 1534 projects under the CDM Scheme are large scale projects. Does this bode well for small developing states?

The battle-lines are being drawn and the contours of policy debate sharpens as the Obama administration continues to signal its intention to institute some form of Carbon emission control measure in the USA. FedEx Chief Executive Officer Fred Smith adds his opinion on the matter. Smith who is part of the Energy Security Leadership Council : a group of military and business leaders and has been outspoken on energy issues advocates a straight carbon tax. Fred Smith said he is in favor of a carbon tax, but that he does not agree with the Obama Administration’s proposal for a cap-and-trade system for carbon emissions.

IMAGINE THE BEAUTY, TAKE IN THE SCENERY, BREATH AND APPRECIATE LIFE

Island Nations Honored for Taking Stand on Climate Under Ozone Treaty Environmental News Network (ENN) will be reporting that: Mauritius and the Federated States of Micronesia (FSM) will be honored today; Tuesday, April 21st 2009, with a Climate Protection Award from the U.S. Environmental Protection Agency for their outstanding contribution to climate protection under the Montreal Protocol ozone treaty.

Professor William Nordhaus' presentation to the Copenhagen Climate Change Congress Plenary Session, 11 March 2009 continues to reverberate. His first strike is against the present Kyoto Regime; as he puts it “the world should dump the “inefficient and ineffective” Kyoto protocol and replace it with a global carbon tax...” The central premise of his proposal stems from the question of "how the goals of climate policy can be effectively and efficiently implemented on the national and sub-national scale"? To this end he suggests that "We need to move the burden of taxation away from labour to resources — and tax not just on carbon but other resources such as water to tackle the far wider environmental and resource problems we face.” Given how difficult it maybe to scrap the Kyoto Regime given the political economy considerations, I think that the measures worth exploring as suggested by Professor Nordhaus include : • Modifying the Kyoto Protocol to include tax-type mod...

Reports from the Guardian: Alistair Darling will use this week's budget to announce an extra £500m of government spending on reducing carbon emissions , including a pledge of £40m to top up and keep open a grants programme for renewable-energy technologies. Several companies and campaign groups are planning to deliver a petition to Downing Street today demanding that the government put greater support for renewable energy in place. Britain is the second-worst performer in the European Union in terms of the amount of energy coming from renewables, and is a long way behind Germany, Denmark, Spain and Portugal.

UK Government buildings emit more CO2 than all of Kenya Public buildings in England and Wales are pumping out 11m tonnes of carbon dioxide a year, more than Kenya's entire carbon footprint. (The Guardian)

Kenya signs its first REDD deal to conserve forests: Mongabay.com is reporting that Kenya has signed its first carbon deal to reduce emissions from deforestation and degradation (REDD). Kenya has signed its first carbon deal to reduce emissions from deforestation and degradation (REDD). San Francisco-based Wildlife Works Carbon and Kenya Forest Service (KFS) announced a plan to protect the 80,000-acre Rukinga forest reserve in southeastern Kenya. The project will be funded by sales of carbon credits in the voluntary carbon market. The credits will be certified under the Voluntary Carbon Standard (VCS).

Financing the move to low-carbon economic development remains a crucial part of any discussion of Carbon Finance. An interesting paper by Wagner, Keohane, Petsonk, and Wang provides a valuable framework to address that issue. To them, financing the transition to low-carbon economic development must be the focus of any framework to encourage developing countries’ participation in the global carbon market... the essence of Clean Investment Budgets (CIBs). Their framework includes the proposal that emerging economies could adopt binding limits on greenhouse gas emissions, set above current levels but within economic and environmental constraints. Such a step would enable these nations to access carbon finance immediately and far more efficiently than existing and proposed mechanisms.

The threat of global warming can be significantly lessened if nations cut emissions of heat-trapping greenhouse gases by 70 percent this century, according to a new study by the National Center for Atmospheric Research (NCAR)

How much should made of the recurring EU attempts to refine the parameters of the CDM? Following earlier proposal by the EU Commission that the CDM should be limited to LDCs, a Carbon Finance is reporting the EU is ready to close its doors to credits from such programmes – threatening global emissions trading... This follows from a position paper issued by the International Emission Trading Association (Ieta) where in The EU is proposing to phase out "one of the main private finance success stories of the Kyoto protocol" . The more things change the more they do remain the same: The EU as a major stakeholder has every right to shape the nature of any global carbon finance regime, but this is not a carte-blanche for unilateral re-modification of the most successful element of the Kyoto Agreement. The EU can not be allowed to limit the beneficiaries of the CDM for their own gains.

How much of the $95 billion on clean technology transfer to developing countries from richer nations from The UN’s Clean Development Mechanism ( CDM) stands to produce has actually occured? Are these CDM projects and by extension the "distribution of clean or low-emissions technology evenly spread around the developing world?" The study, “Analysis of Technology Transfer in CDM Projects,” provides some initial answers: Roughly 36% of the projects accounting for 59% of the annual emission reductions claim to involve technology transfer. Technology transfer is more common for larger projects and projects with foreign participants. Technology transfer is very heterogeneous across project types and usually involves both knowledge and equipment. The technology originates mostly from Japan, Germany, the USA, France, and Great Britain. Unilateral and small-scale projects involve less technology transfer, possibly due to their smaller size: Unilateral project constitutes 39% of a...

How big will a US Carbon Market be? Well New Carbon Finance research economists have taken the first crack at the estimation. According to their initial prediction; The U.S. will be home to a $1 trillion carbon emission market by 2020 if federal and state policymakers continue on their current path towards a cap-and-trade program that is confined to domestic trading only... The researchers predict that in 12 years a carbon-constrained U.S. economy that includes a cap-and-trade system allowing only domestic trades will produce: The reproduced chart says a thousand words !!

This seems to be the main point from a UK government-sponsored study to be released later this year as Reported by the Times Green Digest. The study recommends that the price of European carbon permits should be at least 85 GBP (pounds), about eight times the present price, if they are to meet their goal of getting polluters to cut emissions . Presently carbon permits under Europe’s Emissions Trading Scheme (ETS) are trading at about 11 pounds per ton.

Forestry related projects promoting afforestation and or reforestation are central to the CDM. Not surprising a number of these projects have been approved and are under consideration from Asia to South America. Its importance was underlined when the Precious Woods project in Brazil secured Latin America’s largest issue of carbon credits under Kyoto’s Clean Development Mechanism ( CDM ).: 512,000 CERs. Greenpeace is sounding the alarm warning that the : Inclusion of forest conservation in a market-based mechanism for reducing greenhouse gas emissions would crash carbon prices by swamping the market with cheap credits. .. low carbon prices would "derail global efforts to tackle global warming" and cause "developing countries losing out on billions of dollars a year for investment in clean energy technologies". To that effect Greenpeace is, proposing a hybrid market linked Tropical Deforestation Emission Reduction Mechanism (TDERM) under the UNFCCC and its Kyoto Prot...

I think its worth revisiting a topic I raised earlier : The much discussed trade of between environmental goals and economic growth. As I noted earlier only the skeptics seem to be convinced of this trade of despite mountains of evidence and analysis to the contrary. On that note here is a video from The McKinsey Quarterly of economist Nicholas Stern on the economic downturn and its effect on the climate change agenda.

Kenyan designers have built a cooker that uses trash as fuel to feed the poor, provide hot water and destroy toxic waste, as well as curbing the destruction of woodlands... While the prototype cooker, in Kibera's Laini Saba village, has been dogged by local squabbles, drought and design problems, it proved the idea worked. A tall chimney carries the once-choking fumes away and initial emissions tests have been favourable, Archer's firm says. Now the Kenyan Red Cross is preparing to install similar cookers in the Dadaab and Kakuma refugee camps near the Somali border, where cholera has already broken out this year, and at least one European aid organisation is looking at wide deployment. This mirrors the highly successful Carbon Neutral's Fuel-efficient Cooking Stove project in Eritrea which is estimated to save 300,000 tons CO 2 e per year.

The largest economy in Africa steps up as it stands South Africa is the largest emitter on the African continent, depending on coal for 90 percent of its electricity needs. Despite that fact, moves to diversify to other energy sources have so far stalled due to a lack of policy framework and incentives for investors. In the latest bid to rectify that situation: South Africa's regulator (NERSA) has approved renewable energy tariffs to boost investment in the sector that would help meet the country's target on alternative energy,...

Finally those most vulnerable to Global Warming are speaking out: Small island states have sharpened their calls for the rich to make deep cuts in greenhouse gas emissions, saying low-lying atolls risk being washed off the map by rising ocean levels. An alliance of 43 island states, backed by more than a dozen nations in Africa and Latin America, urged developed countries at U.N. climate talks in Bonn on Thursday to cut greenhouse emissions by "at least 45 percent below 1990 levels by 2020".

This week I will starting a series of post providing important updates and developments from Carbon Markets outside the EU and developments in the US. Tokyo bought about 2 million tonnes in the past year of carbon offsets generated by clean energy projects in developing countries, called certified emission reductions (CERs)... In the two years through March 2008, Tokyo had concluded contracts to buy a total 23.04 million tonnes from abroad, all of which were CERs generated by projects in developing countries under Kyoto's Clean Development Mechanism (CDM).

Reuters is reporting that it appears that industry data for 2008 carbon dioxide emissions shows a permit shortage in The European Union's Emissions Trading Scheme . In effect there was "undershooting" of carbon permits issued under the EU ETS. This in effect meant that EU industries emitted allocated quota of permits. COUNTRY 2008 2008 2007 EMISSIONS ALLOCATIONS EMISSIONS Austria 32.2 30.2 31.8 Belgium 55.5 55.8 52.8 Bulgaria N/A N/A 39.2 Cyprus N/A N/A 5.4 Czech Rep. 77.9 85.4 87.8 Germany 472.6 388.8 487.1 Denmark 26.5 24.0 29.4 Estonia 13.5 11.7 15.3 Spain 162.7 151.7 186.6 Finland 36.2 36.5 42.5 France 112.2 129.5 126.6 UK 265.0 ...

If you want a gist of the the debate in the US please listen to this contribution to the Senate Finance Committee. Start from 1:56 of the video

In the previous post I made a reference to Mayor Bloomberg's Proposal on using wind energy in New York City. Here are the relevant links. Audio Link Text Link (Press Release)

Phoenix's Mayor Phil Gordon wants to make his city America's first carbon-neutral city. Seems like the race is on in the US. This follows on Mayor Bloomberg's proposal at the 2008 National Clean Energy Summit to make New York City a clean-energy powerhouse through off-shore and on-building wind farms.

Though the skeptic position on the trade-off between environmental policy and economic growth has been largely debunked (see here) and (here) for a start, questions still persist. One strain of the latest version of this debate focuses on the cost to developing countries in terms of lower growth rate. For those interested in this debate should read The World Bank's "Low Carbon High Growth - Latin American Responses to Climate Change". A few extracts are worth stating: Given its past record of low-carbon development, its wealth of natural resources, and its intermediate levels of income—when assessed on a global scale— many Latin American countries are well placed to take a leadership role in the developing world’s response to the climate change challenge. This is not only possible; it is also in Latin America’s best interest. Beyond adaptation policies, there is a strong case for Latin America to be an active part of a broader effort to mitigate climate change by means o...

The International Finance Corporation (IFC) announced the final approval of its revised social and environmental standards last month, ending a process that has been wracked by controversy. The revised standards are expected to be reflected in changes in coming weeks to the Equator Principles, a voluntary set of project finance guidelines. The new Performance Standards introduce a number of additional requirements to IFC’s lending criteria. For example, large companies in the developing world applying to the IFC for a loan will now have to report on their greenhouse gas emissions. Other additions include stronger safeguards on biodiversity protection, the introduction of grievance mechanisms for workers and local communities, new measures on the use of security services, and guarantees for community health and safety.

Carbon TradeEx America 2009 on April 7-8, 2009 at the Washington, DC Convention Center.

Positive news on the USA front towards Cap and Trade.The discussion draft of The Waxman-Markey - “The American Clean Energy and Security Act of 2009 ” is now public. The Summary can be found here. For those interested in a more detailed version click here

Solar energy is a key component of the Carbon Free Mix. Paul Detering reports that Technology development in the solar industry continues to accelerate at an unprecedented rate. Over $3 billion was invested in new companies and technologies in 2008 alone, and investments in solar have doubled every year for the last five years. For developing countries this should serve as good news.

Latest report from Carbon Offset daily underlines the significant comparative advantage China has in generating Carbon Credits. They are reporting The Norwegian Ministry of Finance has signed an agreement to buy carbon credits from Shenhua Group, China’s largest coal miner, under the clean development mechanism (CDM), a statement on the State-owned Assets Supervision and Administration Commission’s website said on Tuesday. The certified emission reductions (CERs) will be generated from four wind farm projects in Chicheng and Tongliao in Inner Mongolia autonomous region, developed by Guohua Energy Investment Co, a subsidiary of Shenhua Group. The four projects are expected to generate over 400,000 tons worth of reduction of carbon dioxide emissions every year. The annual revenue is expected to reach 4.8 million euros.

U.S. President Barack Obama on Saturday invited 16 "major economies" including the European Union and the United Nations to take part in a forum on climate change to facilitate a U.N. pact on global warming * 16 major economies invited for climate talks in April * Forum would help advance U.N. talks for a global deal Finally a president and an administration which means business on the environment.

Interesting bit of news. The United States has asked the United Nation's International Maritime Organization to create a buffer zone around America's coastline to cut pollution from ocean-going ships that harms human health The Thomson Reuters Carbon Blog is one of the best out there its free with approved registration.

MENA Carbon Forum 2009 (May 6-7; Cairo, Egypt) The main objective of this Forum is to bring on a unique regional platform, various stakeholders that are active in the carbon market: project owners and developers, CDM governance bodies, financial institutions as well as carbon market buyers and intermediaries and service providers to discuss the latest developments related to carbon market and create ample opportunities for networking and business development. For those interested in exploring the potential in the Middle East and North Africa

Carbon markets up 84% in 2008 New Carbon Finance’s latest analysis of 2008 trading activity confirms our Q3 2008 projections with total transactions throughout the year worth $118bn, representing 4bn tonnes of carbon allowances changing hands. In spite of the uncertain economic climate, we expect growth in the global carbon market to continue, reaching $150bn in 2009

For prospective investor, stake-holders, project developers and managers it is worth keeping in mind that there is a procedure in place to regulate CDM Projects. The CDM has been designed to incorporate a rigorous project cycle. To develop a CDM project, the following regulatory steps occur in the project cycle: Design of the CDM project and preparation of necessary project documentation, including the Project Design Document; Obtain approval from the host country’s Designated National Authority; Receive validation by the Designated Operational Entity (DOE) and registration of that project with the CDM Executive Board; Establish monitoring of the project’s emission reductions; Complete verification and certification of the project’s emission reductions by the DOE; Receive CERs by the CDM Executive Board. The devil is always in the details. There are several factors which may affect the lag at each stage of the process.

As a general bit of advice it is worth clarify what projects would qualified under CDM. As a basis guideline provided through MDG CarbonFacility: A CDM project reduces or avoids the emission of greenhouse gases in a developing country. Examples of such projects include: Renewable energy, such as wind, hydroelectric or solar; Biomass residues, such as utilizing bagasse for electricity generation in a sugar factory; Energy efficiency measures, such as the introduction of compact fluorescent light bulbs or more efficient cookstoves; and Waste management practices, such as capturing methane emissions from wastewater treatment plants

CDM is the Clean Development Mechanism (CDM)established under the Kyoto Agreement offering developing countries the opportunity to use their comparative advantage in emissions reduction: their cost to reduce emissions is generally lower than that of developed countries I am sure the last part of this statement raises serious issues and echos of the statement made by Larry Summers.

A good source of information on the institutional support for Carbon Finance within the broad Millennium Development Goals, the MDG CarbonFacility provides that service.

This is blog 1 in my two part response to Alan Bey's request as to what is " Carbon Finance Thing". Part 1 provides a more detailed answer to my earlier entry stating that the carbon Market is by definition the trading in carbon and the permits to emit Green House Gasses (GHG). The EBRD defines Carbon finance' as the term used for carbon credits to help finance GHG reduction projects. As UNEP points out “emissions reductions can be achieved more quickly, and with less economic dislocation, by harnessing market mechanisms with a skilful blend of policies and measures”. In that respect the objective of carbon finance is to find the lowest cost emissions reduction possibilities. From this perspective Carbon Finance is the branch of Environmental Finance which studies and analyses the functioning of Carbon Markets: a market for the purchase and sale of emissions credits. Also known as Emissions trading (or emission trading) it is a market based approach used to control ...

As promised the second part of my 2 posts in response to Alan Bey's request. The terms used here are borrowed from the World Bank's glossary, which I have referenced as the relevant link. Follow the link for a more complete glossary. Carbon Finance : Resources provided to projects generating (or expected to generate) greenhouse gas (or carbon) emission reductions in the form of the purchase of such emission reductions. Certified Emission Reductions (CERs) : A unit of greenhouse gas emission reductions issued pursuant to the Clean Development Mechanism of the Kyoto Protocol, and measured in metric tons of carbon dioxide equivalent. Clean Development Mechanism (CDM) : The mechanism provided by Article 12 of the Kyoto Protocol, designed to assist developing countries in achieving sustainable development by permitting industrialized countries to finance projects for reducing greenhouse gas emission in developing countries and receive credit for doing so. Emission Reductions (ERs) ...

Members of the G20 have upped the ante linking the global summit on the present financial crisis to talks on climate change. In effect some members see the issue as an integral rather than a peripheral subject. The implication is clear : as long as the environment remains on the front-burner of international economic considerations it bodes well for carbon finance.

The Carbon Market is generally confused with the Market for Clean Energy. Though the two are complementary, they are two separate market solutions to the global environmental (climate) problems. Whilst the Clean Energy market refers to investments in alternative or renewable energy sources, the carbon Market is by definition the trading in carbon and the permits to emit Green House Gasses (GHG). The Carbon Market is one of the fastest growing markets in the world today. The latest figures from the World Bank show a doubling in size in 2007, growing to US$64 billion. The market has been expanding rapidly since 1997, when the Kyoto Protocol capped emissions of greenhouse gases. The growth of the Carbon Market has been built on both international and regional agreements. The demand for carbon assets stems from the efforts of nations and industries to meet emission reduction objectives.

Welcome to my Blog on Carbon Finance. This is a place to converse, share views and analyze the state of and developments in the Carbon Market. The focus is on issues relevant to the key sources of CMD projects and regulations affecting the market.

I have been following the proceeding of the recent Energy Pact Conference in Geneva organized by The Energy Pact Foundation ( March 16 - 17, 2009). The interwoven nature of the energy market and the state of the Carbon Market can not be dismissed. A clear reading of the objectives of the Conference which I think is worth stating here gives a good indication of the possibly paths of the ramification. The Energy Pact Conference has five objectives: • To build a common ground for ...

Upcoming Events on the related to Carbon Finance Sustainable Bioenergy 2009 London, 1 & 2 April Bioenergy North America 2009 Chicago, 17 April Carbon Prices Webinar Online, 20 May Carbon Finance North America 2009 New York, 11 & 12 June EU Emissions Trading 2009 Brussels, 9 & 10 July

This is the Natural Tropical Splendor which has inspired my commitment to the environment. That's what we are fighting for!!! A picture of the island of my birth St.Lucia !