Ethanol adds to global warming
The widespread use of ethanol from corn could result in nearly twice the greenhouse gas emissions as the gasoline it would replace because of expected land-use changes, researchers concluded Thursday. The study challenges the rush to biofuels as a response to global warming.
The researchers said that past studies showing the benefits of ethanol in combating climate change have not taken into account almost certain changes in land use worldwide if ethanol from corn — and in the future from other feedstocks such as switchgrass — become a prized commodity.
"Using good cropland to expand biofuels will probably exacerbate global warming," concludes the study published in Science magazine.
The researchers said that farmers under economic pressure to produce biofuels will increasingly "plow up more forest or grasslands," releasing much of the carbon formerly stored in plants and soils through decomposition or fires. Globally, more grasslands and forests will be converted to growing the crops to replace the loss of grains when U.S. farmers convert land to biofuels, the study said
Technorati Tags:
ethanol, biofuels, alternative fuels, global warming, ethanol, Global Warming, Global warming hoax, global warming scam, greenhouse gas, gasoline, climate change, biofuels, Renewable Fuels
Thursday, February 7, 2008
Wednesday, January 30, 2008
CCS -- capture, transport and storage of CO2
At the moment, the different elements of CCS -- capture, transport and storage of CO2 -- have all been demonstrated, according to the commission, but bringing them all together into one integrated CCS process -- and bringing down the cost of the technology -- remains a challenge.
The major application for CCS is within the fossil fuel power sector, mainly coal and gas power plants, but the technology can also be applied to a range of carbon-emissions-heavy industries such as iron and steel, petrochemicals, refineries and cement production. Cement, for example, is one of the biggest carbon-polluting industries, with every tonne of cement emitting roughly a tonne of carbon in the production process.
There are three main forms of CCS: post-combustion, pre-combustion, and oxyfuel combustion.
With post-combustion, CO2 is removed after the combustion of a fossil fuel, most commonly directly from the flues at a power plant. Post-combustion CCS at a coal-fired power plant is what people mean when they use the term "clean coal".
For pre-combustion, a method used in fertiliser and chemical production, the carbon is removed before the combustion takes place. Oxyfuel combustion burns the fuel in oxygen instead of air.
The biggest carbon storage initiatives currently under development by European firms are the Sleipner project in the North Sea, coordinated by Norwegian petroleum company Statoil, and the Salah project in Algeria, a joint venture of Statoil, BP and Sonatrach. Both involve stripping carbon from natural gas and then storing it underground.
The major application for CCS is within the fossil fuel power sector, mainly coal and gas power plants, but the technology can also be applied to a range of carbon-emissions-heavy industries such as iron and steel, petrochemicals, refineries and cement production. Cement, for example, is one of the biggest carbon-polluting industries, with every tonne of cement emitting roughly a tonne of carbon in the production process.
There are three main forms of CCS: post-combustion, pre-combustion, and oxyfuel combustion.
With post-combustion, CO2 is removed after the combustion of a fossil fuel, most commonly directly from the flues at a power plant. Post-combustion CCS at a coal-fired power plant is what people mean when they use the term "clean coal".
For pre-combustion, a method used in fertiliser and chemical production, the carbon is removed before the combustion takes place. Oxyfuel combustion burns the fuel in oxygen instead of air.
The biggest carbon storage initiatives currently under development by European firms are the Sleipner project in the North Sea, coordinated by Norwegian petroleum company Statoil, and the Salah project in Algeria, a joint venture of Statoil, BP and Sonatrach. Both involve stripping carbon from natural gas and then storing it underground.
EU Carbon Storage Plan
Within the European Commission's comprehensive package of legislative proposals on climate change and energy announced on Wednesday (23 January) is a plan to promote the development of a controversial carbon emissions mitigation technology known as "carbon capture and storage" (CCS).
CCS "captures" carbon dioxide from power plants and stores it in underground geological formations or deep oceans instead of releasing it into the atmosphere.
The climate and energy package includes a series of revised guidelines on state aid for environmental protection that will enable member state governments to support CCS demonstration plants.
"The new environmental aid guidelines strike the right balance between generous support mechanisms for well-targeted aid supporting the environment and the preservation of competition," said competition commissioner Neelie Kroes at the press conference on Wednesday announcing the "Climate Action" package.
Additionally, under the proposals, carbon dioxide captured and stored will be considered not emitted under the emissions trading system (ETS).
The revision on state aid guidelines is necessary because in the first phases of the technology's development, CCS demonstration projects will require additional finance beyond the incentives from the ETS carbon market, as the current cost of the technology is much higher than the price of carbon.
"CCS will only be deployed if the cost per tonne of CO2 avoided is lower than the carbon price," says the commission.
The commission says that while energy efficiency and an increased use of energy from renewable sources are the primary solutions in the short term, other options are needed in the longer term if Europe and the rest of the world are to achieve a 50% reduction in greenhouse gas emissions by 2050.
CCS "captures" carbon dioxide from power plants and stores it in underground geological formations or deep oceans instead of releasing it into the atmosphere.
The climate and energy package includes a series of revised guidelines on state aid for environmental protection that will enable member state governments to support CCS demonstration plants.
"The new environmental aid guidelines strike the right balance between generous support mechanisms for well-targeted aid supporting the environment and the preservation of competition," said competition commissioner Neelie Kroes at the press conference on Wednesday announcing the "Climate Action" package.
Additionally, under the proposals, carbon dioxide captured and stored will be considered not emitted under the emissions trading system (ETS).
The revision on state aid guidelines is necessary because in the first phases of the technology's development, CCS demonstration projects will require additional finance beyond the incentives from the ETS carbon market, as the current cost of the technology is much higher than the price of carbon.
"CCS will only be deployed if the cost per tonne of CO2 avoided is lower than the carbon price," says the commission.
The commission says that while energy efficiency and an increased use of energy from renewable sources are the primary solutions in the short term, other options are needed in the longer term if Europe and the rest of the world are to achieve a 50% reduction in greenhouse gas emissions by 2050.
Friday, January 25, 2008
Critic of carbon trading
An international expert critical of "carbon trading" as a means of reducing greenhouse gases will speak in Rochester on Jan. 31.
Larry Lohmann is editor of the book "Carbon Trading: A Critical Conversation on Climate Change, Privatisation and Power." He is a founding member of the Durban Group for Climate Justice in Durban, South Africa.
He is touring the United States now to describe failures of carbon trading in Europe, India, Brazil, Uganda and elsewhere, and to learn more about U.S. carbon-trading plans and climate politics.
Lohmann will speak at 11 a.m. in the board room at the city-county Government Center, 201 Fourth St. S.E., Rochester; and at 7 p.m. in room 110 in Singley Hall, on the University Center-Rochester campus. The appearances are open to the public, and there is no admission charge.
Sponsoring organizations will present information at booths outside Lohmann's 7 p.m. speech. The booths open at 6:30 p.m.
Lohmann criticizes carbon trading, the primary mechanism for reducing greenhouse gases under the Kyoto Protocol, as having failed to significantly reduce those emissions, and failing to meet certain standards of social justice.
Larry Lohmann is editor of the book "Carbon Trading: A Critical Conversation on Climate Change, Privatisation and Power." He is a founding member of the Durban Group for Climate Justice in Durban, South Africa.
He is touring the United States now to describe failures of carbon trading in Europe, India, Brazil, Uganda and elsewhere, and to learn more about U.S. carbon-trading plans and climate politics.
Lohmann will speak at 11 a.m. in the board room at the city-county Government Center, 201 Fourth St. S.E., Rochester; and at 7 p.m. in room 110 in Singley Hall, on the University Center-Rochester campus. The appearances are open to the public, and there is no admission charge.
Sponsoring organizations will present information at booths outside Lohmann's 7 p.m. speech. The booths open at 6:30 p.m.
Lohmann criticizes carbon trading, the primary mechanism for reducing greenhouse gases under the Kyoto Protocol, as having failed to significantly reduce those emissions, and failing to meet certain standards of social justice.
Thursday, January 17, 2008
Exchanges to study carbon trading
The Tokyo Stock Exchange Group Inc. (TSE) and the Tokyo Commodity Exchange (TOCOM) will jointly study carbon trading systems with an eye to possibly creating a domestic market, sources said.
TSE, the operator of Japan's largest stock exchange, and TOCOM, the market for futures trading in precious metals, aluminum and oil, will form a study panel by the end of this month, according to the sources.
It is part of a broad agreement to be signed by the two entities as early as Wednesday to raise Japan's international competitiveness, the sources said.
While trading in greenhouse gas emissions credits emerged as a thriving business in Europe, Japan dragged its feet in creating a market due to opposition from business circles.
Even so, the two exchanges said there is clearly a growing need for Japan to have one as it comes under stronger pressure to reduce emissions of carbon dioxide (CO2) and other greenhouse gasses.
Trading in emissions rights forms part of the mechanisms introduced under the 1997 Kyoto Protocol to fight global warming.
Countries and companies unable to meet the CO2 reduction targets are allowed to buy emissions credits from those which have cut emissions beyond their goals.
In 2005, the European Union introduced a system to set emission quotas to each company within the region that will allow those unable to meet the criteria to buy credits from those which more than met theirs.
The system is aimed at promoting CO2 reductions on the strength of market forces as successful cuts would lead to benefits while greater emissions mean higher costs.
There has been growing interest in the United States and Canada in following the EU's lead.
In Japan, however, Nippon Keidanren (Japan Business Federation) and related organizations are opposed to the introduction of such systems on grounds emission quotas would mar competitiveness.
Within the government, the Environment Ministry is studying a domestic emission credits system while the Ministry of Economy, Trade and Industry remains cautious.
The two exchanges plan to study systems abroad, such as the European Climate Exchange, to see how they function and to determine the demand for such trading in Japan.
The panel is expected to propose a system that will meet Japan's needs and circumstances as well as point to possible problems.
Under the Kyoto Protocol, Japan is obliged to cut greenhouse gas emissions by 6 percent on average between 2008 and 2012 from levels in 1990.
But meeting that goal appears to be difficult because preliminary figures show that Japan's emissions in fiscal 2006 actually rose 6.4 percent from the 1990 levels.
Against this background, the two exchanges apparently decided it is possible that the need for a domestic market will emerge naturally, according to the sources.(
TSE, the operator of Japan's largest stock exchange, and TOCOM, the market for futures trading in precious metals, aluminum and oil, will form a study panel by the end of this month, according to the sources.
It is part of a broad agreement to be signed by the two entities as early as Wednesday to raise Japan's international competitiveness, the sources said.
While trading in greenhouse gas emissions credits emerged as a thriving business in Europe, Japan dragged its feet in creating a market due to opposition from business circles.
Even so, the two exchanges said there is clearly a growing need for Japan to have one as it comes under stronger pressure to reduce emissions of carbon dioxide (CO2) and other greenhouse gasses.
Trading in emissions rights forms part of the mechanisms introduced under the 1997 Kyoto Protocol to fight global warming.
Countries and companies unable to meet the CO2 reduction targets are allowed to buy emissions credits from those which have cut emissions beyond their goals.
In 2005, the European Union introduced a system to set emission quotas to each company within the region that will allow those unable to meet the criteria to buy credits from those which more than met theirs.
The system is aimed at promoting CO2 reductions on the strength of market forces as successful cuts would lead to benefits while greater emissions mean higher costs.
There has been growing interest in the United States and Canada in following the EU's lead.
In Japan, however, Nippon Keidanren (Japan Business Federation) and related organizations are opposed to the introduction of such systems on grounds emission quotas would mar competitiveness.
Within the government, the Environment Ministry is studying a domestic emission credits system while the Ministry of Economy, Trade and Industry remains cautious.
The two exchanges plan to study systems abroad, such as the European Climate Exchange, to see how they function and to determine the demand for such trading in Japan.
The panel is expected to propose a system that will meet Japan's needs and circumstances as well as point to possible problems.
Under the Kyoto Protocol, Japan is obliged to cut greenhouse gas emissions by 6 percent on average between 2008 and 2012 from levels in 1990.
But meeting that goal appears to be difficult because preliminary figures show that Japan's emissions in fiscal 2006 actually rose 6.4 percent from the 1990 levels.
Against this background, the two exchanges apparently decided it is possible that the need for a domestic market will emerge naturally, according to the sources.(
HKEx looks to carbon trading
Hong Kong Exchanges and Clearing on Wednesday said it was looking to partner with an overseas exchange this year to create a trading platform for carbon credits or other emissions-related products.
It joins a number of its Asian rivals hoping to tap into the increasingly mature market. Mumbai-based Multi Commodity Exchange of India and the New Zealand Stock Exchange have both announced similar plans.
Most emissions-related trading take place in Europe under the European Union’s emissions trading scheme, with a smaller amount also traded through the Kyoto Protocol’s clean development mechanism.
Exchanges, however, have faced strong competition. In the EU ETS market, less than one-third of the carbon trade was conducted on exchanges, with the rest occurring either over the counter through brokers or in bilateral agreements.
Paul Chow, HKEx chief executive, yesterday also announced a plan to introduce trading in gold-related products within this year.
It joins a number of its Asian rivals hoping to tap into the increasingly mature market. Mumbai-based Multi Commodity Exchange of India and the New Zealand Stock Exchange have both announced similar plans.
Most emissions-related trading take place in Europe under the European Union’s emissions trading scheme, with a smaller amount also traded through the Kyoto Protocol’s clean development mechanism.
Exchanges, however, have faced strong competition. In the EU ETS market, less than one-third of the carbon trade was conducted on exchanges, with the rest occurring either over the counter through brokers or in bilateral agreements.
Paul Chow, HKEx chief executive, yesterday also announced a plan to introduce trading in gold-related products within this year.
Monday, January 14, 2008
Carbon Market Europe
European commission plans ending free carbon permit allocation in 2020; EUAs and CERs - abnormal price curves?; Romania sues commission over allocation; Energy and climate package high on EU agenda in next six months; UK says yes to nuclear; Dresdner Kleinwort, UBS launch new EUA-linked products; Norway to set up carbon credit web shop; EUA and CER closing prices and market comment
Wednesday, January 2, 2008
Chicago Climate Exchange
Chicago Climate Exchange (CCX), launched in 2003, is the world’s first and North America’s only active voluntary, legally binding integrated trading system to reduce emissions of all six major greenhouse gases (GHGs), with offset projects worldwide.
CCX Members are leaders in greenhouse gas (GHG) management and represent all sectors of the global economy, as well as public sector innovators. Reductions achieved through CCX are the only reductions made in North America through a legally binding compliance regime, providing independent, third party verification by the Financial Industry Regulatory Authority (FINRA, formerly NASD). The founder, Chairman and CEO of CCX is economist and financial innovator Dr. Richard L. Sandor, who was named a Hero of the Planet by Time Magazine in 2002 for founding CCX, and in 2007 as the "father of carbon trading."
CCX emitting Members make a voluntary but legally binding commitment to meet annual GHG emission reduction targets. Those who reduce below the targets have surplus allowances to sell or bank; those who emit above the targets comply by purchasing CCX Carbon Financial Instrument® (CFI™) contracts.
CFI Contracts, the CCX Tradable Commodity
The commodity traded at CCX is the CFI contract, each of which represents 100 metric tons of CO2 equivalent. CFI contracts are comprised of Exchange Allowances and Exchange Offsets. Exchange Allowances are issued to emitting Members in accordance with their emission baseline and the CCX Emission Reduction Schedule. Exchange Offsets are generated by qualifying offset projects.
Goals of CCX:
To facilitate the transaction of GHG allowance trading with price transparency, design excellence and environmental integrity
To build the skills and institutions needed to cost-effectively manage GHGs
To facilitate capacity-building in both public and private sectors to facilitate GHG mitigation
To strengthen the intellectual framework required for cost effective and valid GHG reduction
To help inform the public debate on managing the risk of global climate change
Benefits of Membership:
Be prepared: mitigate financial, operational and reputational risks
Reduce emissions using the highest compliance standards with third party verification
Prove concrete action on climate change to shareholders, rating agencies, customers and citizens
Establish a cost-effective, turnkey emissions management system
Drive policy developments based on practical, hands-on experience
Gain leadership recognition for taking early, credible and binding action to address climate change
Establish early track record in reductions and experience with growing carbon and GHG market
Technorati Tags:
Chicago Climate Exchange, carbon trading, carbon trade
CCX Members are leaders in greenhouse gas (GHG) management and represent all sectors of the global economy, as well as public sector innovators. Reductions achieved through CCX are the only reductions made in North America through a legally binding compliance regime, providing independent, third party verification by the Financial Industry Regulatory Authority (FINRA, formerly NASD). The founder, Chairman and CEO of CCX is economist and financial innovator Dr. Richard L. Sandor, who was named a Hero of the Planet by Time Magazine in 2002 for founding CCX, and in 2007 as the "father of carbon trading."
CCX emitting Members make a voluntary but legally binding commitment to meet annual GHG emission reduction targets. Those who reduce below the targets have surplus allowances to sell or bank; those who emit above the targets comply by purchasing CCX Carbon Financial Instrument® (CFI™) contracts.
CFI Contracts, the CCX Tradable Commodity
The commodity traded at CCX is the CFI contract, each of which represents 100 metric tons of CO2 equivalent. CFI contracts are comprised of Exchange Allowances and Exchange Offsets. Exchange Allowances are issued to emitting Members in accordance with their emission baseline and the CCX Emission Reduction Schedule. Exchange Offsets are generated by qualifying offset projects.
Goals of CCX:
To facilitate the transaction of GHG allowance trading with price transparency, design excellence and environmental integrity
To build the skills and institutions needed to cost-effectively manage GHGs
To facilitate capacity-building in both public and private sectors to facilitate GHG mitigation
To strengthen the intellectual framework required for cost effective and valid GHG reduction
To help inform the public debate on managing the risk of global climate change
Benefits of Membership:
Be prepared: mitigate financial, operational and reputational risks
Reduce emissions using the highest compliance standards with third party verification
Prove concrete action on climate change to shareholders, rating agencies, customers and citizens
Establish a cost-effective, turnkey emissions management system
Drive policy developments based on practical, hands-on experience
Gain leadership recognition for taking early, credible and binding action to address climate change
Establish early track record in reductions and experience with growing carbon and GHG market
Technorati Tags:
Chicago Climate Exchange, carbon trading, carbon trade
Tuesday, January 1, 2008
Friday, December 28, 2007
Carbon Footprint
A Carbon Footprint is a measure of the impact human activities have on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide.
A Carbon Footprint is made up of the sum of two parts, the direct / primary footprint and the indirect / secondary footprint.
1. The primary footprint is a measure of our direct emissions of CO2 from the burning of fossil fuels including domestic energy consumption and transportation (e.g. car and plane).
2. The secondary footprint is a measure of the indirect CO2 emissions from the whole lifecycle of products we use - those associated with their manufacture and eventual breakdown.
Technorati Tags:
carbon footprint, carbon footprint calculator, calculate carbon footprint
A Carbon Footprint is made up of the sum of two parts, the direct / primary footprint and the indirect / secondary footprint.
1. The primary footprint is a measure of our direct emissions of CO2 from the burning of fossil fuels including domestic energy consumption and transportation (e.g. car and plane).
2. The secondary footprint is a measure of the indirect CO2 emissions from the whole lifecycle of products we use - those associated with their manufacture and eventual breakdown.
Technorati Tags:
carbon footprint, carbon footprint calculator, calculate carbon footprint
Sunday, December 23, 2007
Carbon Trading: The World's Next Biggest Market
The New York Times recently ran an article claiming that "carbon will be the world's biggest commodity market, and it could become the world's biggest market overall."
Rest assured, it will be.
Currently valued at over $30 billion, the carbon trading market is set to skyrocket to over $1 trillion as the price of carbon becomes more and more valuable.
And it's possible to get a piece of this infant industry right now.
Early investors can play the burgeoning carbon market by:
1. Investing in carbon credits themselves, or2. Investing in companies that are making extra cash by reducing their emissions
There's no telling just how lucrative this market will become. Why else would huge companies like GE, DuPont, and Johnson & Johnson be racing to reduce their emissions?
Rest assured, it will be.
Currently valued at over $30 billion, the carbon trading market is set to skyrocket to over $1 trillion as the price of carbon becomes more and more valuable.
And it's possible to get a piece of this infant industry right now.
Early investors can play the burgeoning carbon market by:
1. Investing in carbon credits themselves, or2. Investing in companies that are making extra cash by reducing their emissions
There's no telling just how lucrative this market will become. Why else would huge companies like GE, DuPont, and Johnson & Johnson be racing to reduce their emissions?
Wednesday, December 19, 2007
It sounds attractive - does it work as a way of dealing with climate change?
Trading, whether between companies or countries, only works if emissions are reduced enough to contain global warming. Creating a market does not, by itself, reduce emissions.
Moreover, the benefits could be severely limited if trading is not comprehensive.
As important as what or who is included is what is not included.
Carbon dioxide represents only part - albeit a crucial part; more than 70% - of all greenhouse gases.
Furthermore, the US, the world's largest CO2 polluter, excluded itself by choosing not to ratify Kyoto.
And while the US is the biggest emitter today, China, which is projected to exceed the US in emissions by mid century, has no obligation to reduce emissions.
Even within trading schemes such as the ETS, whole sectors' emissions are excluded, such as transport, homes and the public sector.
Aviation is the fastest-growing source of CO2 emissions, and some experts have calculated that if it were included, the UK's entire allowance would soon be used up.
Critics say trading carbon condones the idea of "business as usual" and fails to emphasise the need to invest in renewable energies and move away from fossil fuels.
Trading, while it may acknowledge the threat posed by global warming, does not address the seriousness and scale of the problem, argue environmentalists.
For trading to work it would have to become much broader - perhaps even embracing personal carbon allowances for individuals, some say.
More and more scientists are saying that the carbon dioxide ceilings under the treaty are too high - perhaps far too high - to help avert serious climate change.
http://officialglobalwarming.blogspot.com/
Moreover, the benefits could be severely limited if trading is not comprehensive.
As important as what or who is included is what is not included.
Carbon dioxide represents only part - albeit a crucial part; more than 70% - of all greenhouse gases.
Furthermore, the US, the world's largest CO2 polluter, excluded itself by choosing not to ratify Kyoto.
And while the US is the biggest emitter today, China, which is projected to exceed the US in emissions by mid century, has no obligation to reduce emissions.
Even within trading schemes such as the ETS, whole sectors' emissions are excluded, such as transport, homes and the public sector.
Aviation is the fastest-growing source of CO2 emissions, and some experts have calculated that if it were included, the UK's entire allowance would soon be used up.
Critics say trading carbon condones the idea of "business as usual" and fails to emphasise the need to invest in renewable energies and move away from fossil fuels.
Trading, while it may acknowledge the threat posed by global warming, does not address the seriousness and scale of the problem, argue environmentalists.
For trading to work it would have to become much broader - perhaps even embracing personal carbon allowances for individuals, some say.
More and more scientists are saying that the carbon dioxide ceilings under the treaty are too high - perhaps far too high - to help avert serious climate change.
http://officialglobalwarming.blogspot.com/
How is carbon traded?
There are two main ways to exchange carbon.
The first is what is called a cap-and-trade scheme whereby emissions are limited and can then be traded. Under Kyoto developed countries can trade between each other.
The European Trading Scheme (ETS) is a cap-and-trade scheme and the largest companies-based scheme around.
It is mandatory and includes 12,000 sites across the 25 European Union member states.
It came into force in 2005 and covers heavy industry and power generation, including non-European companies.
There are also voluntary cap-and-trade schemes.
The Chicago Climate Exchange (CCX) is such a scheme.
Interest in carbon trading at regional level is increasing in America, even though the US government has decided not to ratify Kyoto.
The UK also has its own voluntary scheme, for which companies cut their emissions in return for incentive payments.
The second main way of trading carbon is through credits from projects that compensate for or "offset" emissions.
The Kyoto protocol's Clean Development Mechanism (CDM), for example, allows developed countries to gain emissions credits for financing projects based in developing countries.
A Kyoto mechanism called Joint Implementation (JI), also involves project-based schemes whereby one country can receive emissions credits for financing projects that reduce emissions in another developed country.
Compliance is critical.
Under their Kyoto obligations, industrialised countries have 100 days after final annual assessments to pay for any shortfall - by buying credits or more allowances via emissions trading.
Failure to do so leads to further penalties.
In voluntary schemes, by contrast, this is not the case.
http://officialglobalwarming.blogspot.com/
The first is what is called a cap-and-trade scheme whereby emissions are limited and can then be traded. Under Kyoto developed countries can trade between each other.
The European Trading Scheme (ETS) is a cap-and-trade scheme and the largest companies-based scheme around.
It is mandatory and includes 12,000 sites across the 25 European Union member states.
It came into force in 2005 and covers heavy industry and power generation, including non-European companies.
There are also voluntary cap-and-trade schemes.
The Chicago Climate Exchange (CCX) is such a scheme.
Interest in carbon trading at regional level is increasing in America, even though the US government has decided not to ratify Kyoto.
The UK also has its own voluntary scheme, for which companies cut their emissions in return for incentive payments.
The second main way of trading carbon is through credits from projects that compensate for or "offset" emissions.
The Kyoto protocol's Clean Development Mechanism (CDM), for example, allows developed countries to gain emissions credits for financing projects based in developing countries.
A Kyoto mechanism called Joint Implementation (JI), also involves project-based schemes whereby one country can receive emissions credits for financing projects that reduce emissions in another developed country.
Compliance is critical.
Under their Kyoto obligations, industrialised countries have 100 days after final annual assessments to pay for any shortfall - by buying credits or more allowances via emissions trading.
Failure to do so leads to further penalties.
In voluntary schemes, by contrast, this is not the case.
http://officialglobalwarming.blogspot.com/
How big is the market today?
Exact figures are hard to come by because the market is still fairly new, since data is not easily available and since several different schemes exist, not all directly comparable.
The World Bank, one of the main players in carbon financing, estimates the value of carbon traded in 2005 to be about $10bn.
The Bank believes the carbon market has the potential to bring more than $25bn (£14bn) in new financing for sustainable development to the poorest countries and the developing world.
Trading firms, brokers and banks are among those expected to make money through commissions for organising carbon deals.
The Bank's own carbon finance fund has more than doubled from $415m in 2004 to $915m last year
http://officialglobalwarming.blogspot.com/
The World Bank, one of the main players in carbon financing, estimates the value of carbon traded in 2005 to be about $10bn.
The Bank believes the carbon market has the potential to bring more than $25bn (£14bn) in new financing for sustainable development to the poorest countries and the developing world.
Trading firms, brokers and banks are among those expected to make money through commissions for organising carbon deals.
The Bank's own carbon finance fund has more than doubled from $415m in 2004 to $915m last year
http://officialglobalwarming.blogspot.com/
Is carbon trading new?
The Kyoto protocol is the first scheme that includes global trading in greenhouse gases, but the idea of trading pollutants was first tried in the 1970s when the US decided to trade sulphur dioxide and nitrous oxide to tackle acid rain.
Neither is the idea of trading allowances for ecological protection new.
The European Union, under its Common Agricultural Policy, has for some time had schemes for trading national or local quotas, in dairy production or fishery catches
http://officialglobalwarming.blogspot.com/
Neither is the idea of trading allowances for ecological protection new.
The European Union, under its Common Agricultural Policy, has for some time had schemes for trading national or local quotas, in dairy production or fishery catches
http://officialglobalwarming.blogspot.com/
What is the idea behind carbon trading?
Carbon trading is a market mechanism intended to tackle global warming. Though it dates back to 1989 it only took off as a market after the Kyoto Protocol was signed. Under the Kyoto treaty - which came into force in February 2005 - industrialised countries must reduce total greenhouse gas emissions by an average 5.2% compared with 1990 levels between 2008-2012.
The most important greenhouse gas contributing to global warming is carbon dioxide, which is mainly emitted by burning fossil fuels. Under Kyoto, each participating government has its own national target for reducing carbon dioxide emissions.
Other reduction initiatives - not part of Kyoto - include company-based schemes, which also have specific targets.
The key idea behind carbon trading is that, from the planet's point of view, where carbon dioxide comes from is far less important than total amounts.
So, rather than rigidly forcing the reduction of emissions country-by-country, (or company-by-company), the market creates a choice: either spend the money to cover the costs of cutting pollution (emissions), or else continue polluting (emitting), and pay someone else to cut their pollution.
In theory this enables emissions to be cut with the minimum price tag.
http://officialglobalwarming.blogspot.com/
The most important greenhouse gas contributing to global warming is carbon dioxide, which is mainly emitted by burning fossil fuels. Under Kyoto, each participating government has its own national target for reducing carbon dioxide emissions.
Other reduction initiatives - not part of Kyoto - include company-based schemes, which also have specific targets.
The key idea behind carbon trading is that, from the planet's point of view, where carbon dioxide comes from is far less important than total amounts.
So, rather than rigidly forcing the reduction of emissions country-by-country, (or company-by-company), the market creates a choice: either spend the money to cover the costs of cutting pollution (emissions), or else continue polluting (emitting), and pay someone else to cut their pollution.
In theory this enables emissions to be cut with the minimum price tag.
http://officialglobalwarming.blogspot.com/
Tuesday, December 11, 2007
GlobalCarbon Trading Market
The global market in carbon trading tripled last year to $30bn (£15bn) but its role in the battle against climate change could be hit by worries about the effectiveness of unregulated carbon offset projects, the World Bank warned yesterday.
The bulk of carbon trading, some $25bn, was carried out through the sale of allowances under the European Union's emissions trading scheme - which covers industries pumping out large amounts of carbon dioxide - according to the bank's seventh annual carbon market intelligence study which was published yesterday.
Officially-backed carbon offset projects, where, under the Kyoto agreement, companies and countries can invest in emission reduction schemes in developing countries and economies in transition, doubled to $5bn, the report said.
The World Bank also estimated that carbon purchases have raised $14bn in "associated investments" supporting clean energy in developing countries since 2002.
"These numbers are relevant because they demonstrate that the carbon market has become a valuable catalyst for leveraging substantial financial flows for clean energy in developing countries," Warren Evans, the World Bank's director of environment said.
"The greenhouse gas markets continued to grow and mature in 2006," Jack Cogen, president of Natsource LLC, an emissions and renewable energy asset management firm, said.
"In 2006 we saw growing activity in this asset class not only from industrial companies, but also from newer participants, like commercial firms, banks and financial institutions that recognise the attractiveness of this market for managing risks and earning returns on capital."
Carbon trading is seen as a market based alternative to either direct taxation or a "command and control" approach which would directly impose emission limits.
However the EU's emission trading scheme has come in for criticism because allowances under the initial phase proved too generous, causing a fall in the carbon price, offering little incentive to cut emissions. Allocations have been toughened for the second phase, which runs from 2008 to 2012. Supporters believe the new levels will make the system more effective and that the European model could provide the hub of a global carbon trading mechanism in coming years.
As well as reducing emissions in developed economies, policymakers are hopeful that carbon trading will help provide the finance to clean up heavy industry in poor countries where economic expansion is set to increase emission levels.
The World Bank cautioned that moves in carbon offsets outside the regulated "cap and trade" systems could pose a threat to the development of the overall market. There has been growing criticism that schemes where companies or individuals seek to offset their emissions by investing in projects to cut emissions elsewhere, are either not delivering or funding developments that would have been financed anyway. Critics say that the system needs a greater degree of standardisation.
The World Bank said that on some estimates voluntary carbon offset schemes could rise to 400m tonnes by 2010. It added: "This high potential voluntary sector, however, lacks a generally acceptable standard, which remains a significant reputation risk not only to its own prospects, but also to the rest of the market, including segments of regulated emissions trading and project offsets."
The concern was underlined yesterday by Yvo de Boer, the head of the UN Climate Change secretariat.
He said the official clean development programme (CDM) was working well but some analysis of the scheme was failing to differentiate between the highly regulated CDM and a growing number of unregulated or self regulated enterprises. "Some confusion can be expected, but some analysis of the CDM
The bulk of carbon trading, some $25bn, was carried out through the sale of allowances under the European Union's emissions trading scheme - which covers industries pumping out large amounts of carbon dioxide - according to the bank's seventh annual carbon market intelligence study which was published yesterday.
Officially-backed carbon offset projects, where, under the Kyoto agreement, companies and countries can invest in emission reduction schemes in developing countries and economies in transition, doubled to $5bn, the report said.
The World Bank also estimated that carbon purchases have raised $14bn in "associated investments" supporting clean energy in developing countries since 2002.
"These numbers are relevant because they demonstrate that the carbon market has become a valuable catalyst for leveraging substantial financial flows for clean energy in developing countries," Warren Evans, the World Bank's director of environment said.
"The greenhouse gas markets continued to grow and mature in 2006," Jack Cogen, president of Natsource LLC, an emissions and renewable energy asset management firm, said.
"In 2006 we saw growing activity in this asset class not only from industrial companies, but also from newer participants, like commercial firms, banks and financial institutions that recognise the attractiveness of this market for managing risks and earning returns on capital."
Carbon trading is seen as a market based alternative to either direct taxation or a "command and control" approach which would directly impose emission limits.
However the EU's emission trading scheme has come in for criticism because allowances under the initial phase proved too generous, causing a fall in the carbon price, offering little incentive to cut emissions. Allocations have been toughened for the second phase, which runs from 2008 to 2012. Supporters believe the new levels will make the system more effective and that the European model could provide the hub of a global carbon trading mechanism in coming years.
As well as reducing emissions in developed economies, policymakers are hopeful that carbon trading will help provide the finance to clean up heavy industry in poor countries where economic expansion is set to increase emission levels.
The World Bank cautioned that moves in carbon offsets outside the regulated "cap and trade" systems could pose a threat to the development of the overall market. There has been growing criticism that schemes where companies or individuals seek to offset their emissions by investing in projects to cut emissions elsewhere, are either not delivering or funding developments that would have been financed anyway. Critics say that the system needs a greater degree of standardisation.
The World Bank said that on some estimates voluntary carbon offset schemes could rise to 400m tonnes by 2010. It added: "This high potential voluntary sector, however, lacks a generally acceptable standard, which remains a significant reputation risk not only to its own prospects, but also to the rest of the market, including segments of regulated emissions trading and project offsets."
The concern was underlined yesterday by Yvo de Boer, the head of the UN Climate Change secretariat.
He said the official clean development programme (CDM) was working well but some analysis of the scheme was failing to differentiate between the highly regulated CDM and a growing number of unregulated or self regulated enterprises. "Some confusion can be expected, but some analysis of the CDM
Carbon Trading
What is Carbon Trading
Carbon Trading is a market based mechanism for helping mitigate the increase of CO2 in the atmosphere. Carbon Trading Markets are developing that bring buyers and sellers of carbon credits together with standardized rules of trade.
Who are potential buyers for Carbon Credits?
Any entity, typically a business, that emits CO2 to the atmosphere may have an interest or may be required by law to balance their emissions through mechanism of Carbon sequestration. These businesses may include power generating facilities or many kinds of manufacturers.
Who are potential sellers of Carbon Credits ?
Entities that manage forest or agricultural land might sell carbon credits based on the accumulation of carbon in their forest trees or agricultural soils. Similarly, business entities that reduce their carbon emission may be able to sell their reductions to other emitters.
Technorati Profile
Carbon Trading is a market based mechanism for helping mitigate the increase of CO2 in the atmosphere. Carbon Trading Markets are developing that bring buyers and sellers of carbon credits together with standardized rules of trade.
Who are potential buyers for Carbon Credits?
Any entity, typically a business, that emits CO2 to the atmosphere may have an interest or may be required by law to balance their emissions through mechanism of Carbon sequestration. These businesses may include power generating facilities or many kinds of manufacturers.
Who are potential sellers of Carbon Credits ?
Entities that manage forest or agricultural land might sell carbon credits based on the accumulation of carbon in their forest trees or agricultural soils. Similarly, business entities that reduce their carbon emission may be able to sell their reductions to other emitters.
Technorati Profile
Subscribe to:
Posts (Atom)