Avoided deforestation credits head for the voluntary carbon markets

January 4, 2008 (ClimateChangeCorp.com) – Two Indonesian states determined to halt deforestation are getting ready to sell their forest carbon credits on the voluntary markets.

The Indonesian provinces are not prepared to wait for an international agreement on forestry, they want to start selling forestry credits on the voluntary markets now.  The governors of West Papua province and Aceh signed an agreement with the governor of the Amazon region in Brazil at the UN post-Kyoto talks in Bali. They agreed to work together to preserve their rainforests and to help establish international funding to avoid deforestation.

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Indian Solar Energy Firm Says Carbon Credits Don’t Work

Editor:  We regret that the following byline was inadvertently omitted to credit the author for this post:

Keya Acharya * IPS/IFEJ 

December 21, 2007 (Keya Acharya * IPS/IFEJ) – A small but successful solar energy company involved in rural electrification in India is complaining that the Kyoto Protocol’s clean development mechanism (CDM) has been of no practical use to it. Selco (Solar Electric Light Company), winner of the 2005 – 2007 London-based Ashden Awards for outstanding achievement in sustainable energy, has found it impossible to harness any benefits from CDM, forcing it to turn to the voluntary emissions market instead.

“Since we deal with selling lighting to poor households, that really do not emit much greenhouse gases (GhGs), we found the process for selling savings on carbon emissions through the Kyoto Protocol’s CDM too expensive and time-consuming for us,” says Thomas Pullenkav, vice-president of Selco.

 

Hong Kong Exchange Looks to Trade Smog Rights

December 11, 2007 (NY Times) – As this city struggles under a daily cloud of noxious fumes from local traffic and nearby factories in mainland China, the Hong Kong Stock Exchange is considering using its financial muscle as part of a solution.The exchange’s board is scheduled Wednesday to consider setting up system for trading in pollution emissions allowances. Such system could serve as a financial platform for mainland China and other Asian countries entering a burgeoning new business.

Emission (GHG) Reductions Support is Needed From Business Sector

October 5, 2007 (UN Chronicle): “Without binding commitments and the resulting downward pressure on greenhouse gas (GHG) emissions, there is no carbon market. What’s worse, we might fail in our battle against climate change and that would result in costs that are much higher than the cost of action now”, said Yvo de Boer, Executive Secretary of UN Framework Convention on Climate Change (UNFCCC) at the Carbon Finance World Conference, held on 19 September 2007 in Chicago. Support from the private sector is essential for industrialized countries to realize substantial emission-reduction as a response to climate change and for the continuity in the growing global carbon market, he explained.

Global Voluntary Carbon Market Grows by 200% in 2006

GreenBiz.com, 24 July 2007 – The voluntary carbon market grew by 200 percent last year, and is expected to set more records in 2007, according to a report released last week.

The Ecosystem Marketplace and New Carbon Finance commissioned “State of the Voluntary Carbon Markets 2007: Picking Up Steam,” an assessment that analyzed current trends, buyer motivation and pricing history. The results included predictions that the market would continue growing in leaps and bounds, despite potential future legislation.

“This report underscores the importance of transparent and robust standards to ensure quality and credibility within the emerging emission reductions market. For buyers worldwide, the quality of the offset is of paramount concern,” said Eron Bloomgarden, EcoSecurities U.S. Country Director. “Continued development of rigorous industry protocols will play a critical role in the continued maturation of the voluntary offset market.”

The report valued the global carbon market at $91 million in 2006, with about 23.7 million tons of carbon dioxide emissions transacted. The volume-weighted average price was $4.1 per ton. Projects with strong quality and verifiable attributes, such as landfill methane, coal mine methane and forestry, commanded the highest prices.

During the last five years, the number of companies supplying carbon credits has grown by 200 percent. Projects that involve forestry sequestration, renewable energy and industrial gases accounted for the bulk of projects, the report said. The market provides ample opportunity for smaller projects that generate less than 5,000 tons of carbon emissions.

North American and European markets drove most of the demand in the voluntary carbon market, the report found.

“Survey respondents reported that 68 percent of their customers are based in the United States and 3 percent in Canada,” the report said.

The European Union accounted for 28 percent of respondents’ customers, and more than 30 percent of suppliers of carbon offsets.

Overall, the largest buyers of carbon offsets were businesses. The report found that corporate social responsibility drove the market, with large gains coming from North American markets. The ran counter to researcher expectations, who anticipated that the possibility of future regulation would play a larger role in the decisions to buy carbon offsets.

The report urged the implementation of industry standards, certification and verification processes to reduce the “buyer beware” market.