Carbon emissions trading is emissions trading specifically for carbon dioxide (calculated in tonnes of carbon dioxide equivalent or tCO2e) and currently makes up the bulk of emissions trading.
It is one of the ways countries can meet their obligations under the Kyoto Protocol to reduce carbon emissions and thereby mitigate global warming.
Units HArba..
The units which may be transferred under Article 17 emissions trading, each equal to one metric tonne of emissions (in CO2-equivalent terms), may be in the form of:
* An assigned amount unit (AAU) issued by an Annex I Party on the basis of its assigned amount pursuant to Articles 3.7 and 3.8 of the Protocol.
* A removal unit (RMU) issued by an Annex I Party on the basis of land use, land-use change and forestry (LULUCF) activities under Articles 3.3 and 3.4 of the Kyoto Protocol.
* An emission reduction unit (ERU) generated by a joint implementation project under Article 6 of the Kyoto Protocol.
* A certified emission reduction (CER) generated from a clean development mechanism project activity under Article 12 of the Kyoto Protocol.
Transfers and acquisitions of these units are to be tracked and recorded through the registry systems under the Kyoto Protocol.
Market trend
Carbon emissions trading has been steadily increasing in recent years. According to the World Bank's Carbon Finance Unit, 374 million metric tonnes of carbon dioxide equivalent (tCO2e) were exchanged through projects in 2005, a 240% increase relative to 2004 (110 mtCO2e)[which was itself a 41% increase relative to 2003 (78 mtCO2e).
Business reaction
With the creation of a market for mandatory trading of carbon dioxide emissions within the Kyoto Protocol, the London financial marketplace has established itself as the center of the carbon finance market, and is expected to have grown into a market valued at $60 billion in 2007. not in citation given The voluntary offset market, by comparison, is projected to grow to about $4bn by 2010.
Twenty three multinational corporations came together in the G8 Climate Change Roundtable, a business group formed at the January 2005 World Economic Forum. The group included Ford, Toyota, British Airways, BP and Unilever. On 9 June 2005 the Group published a statement stating that there was a need to act on climate change and stressing the importance of market-based solutions. It called on governments to establish "clear, transparent, and consistent price signals" through "creation of a long-term policy framework" that would include all major producers of greenhouse gases. By December 2007 this had grown to encompass 150 global businesses.
Business in the UK have come out strongly in support of emissions trading as a key tool to mitigate climate change, supported by Green NGOs.
Moral tradeoff
With carbon emission trading, there is the rarely discussed concern of moral tradeoff. The idea is exemplified in the study, "A Fine is a Price", conducted by Uri Gneezy and Aldo Rustichini with a selected group of Haifa childcare centers in Israel. The study showed that monetary fines on late-coming parents did not deter the tardy habit and instead, created an unexpected economic and moral tradeoff for the late-coming parents as they could now compensate for their tardiness under the new fine system.
However, this analogy does not take into account an important distinction between late fees at childcare centres and cap-and-trade emissions reduction schemes: the price paid by a late-coming parent has no impact on the price to be paid by other late-coming parents. That is, there is no bidding system in place where parents compete for the right to arrive late. This contrasts with an emissions trading scheme, where one firm's willingness to pay for carbon emissions reduces the number of permits available to other emitters, thereby increasing scarcity and hence the price of carbon pollution.
From http://en.wikipedia.org/
Wednesday, December 9, 2009
Tuesday, December 8, 2009
CDM Gold Standard
The Gold Standard is the world's only independent standard for creating high-quality emission reductions projects in the Clean Development Mechanism (CDM) Joint Implementation (JI) and Voluntary Carbon Market. It was designed to ensure that carbon credits are not only real and verifiable but that they make measurable contributions to sustainable development worldwide. Its objective is to add branding, a label to existing and new Carbon Credits generated by projects which can then be bought and traded by countries that have a binding legal commitment according to the Kyoto Protocol.
History
The Gold Standard for CDM (GS CER) was developed in 2003 by World Wide Fund for Nature (WWF), SouthSouthNorth, and Helio International. The Voluntary Gold Standard (GS VER), a methodology for use within the voluntary carbon market, was launched in May 2006. Both were the result of an extensive 12-month workshop and web-based consultation process conducted by an independent Standards Advisory Board composed of NGOs, scientists, project developers and government representatives.
The Gold Standard is open to any non-government, community based organization especially those with an interest in the promotion of sustainable development or a focus on climate and energy issues. As of March 2009, 60 environmental and development non-profit organizations internationally officially endorse The Gold Standard. These organizations support The Gold Standard as an effective tool for creating high-quality emission reduction projects that promote sustainable development and benefit local communities.
The Gold Standard is headquartered in the BASE (Basel Agency for Sustainable Energy) offices in Basel, Switzerland, with offices in Geneva, Rome and San Francisco. It employs local experts in Brazil, China, India and South Africa.
The Gold Standard is registered as a non-profit foundation under.
Eligibility
To be eligible for Gold Standard Certification, a project must:
1. Be an approved Renewable Energy Supply or End-use Energy Efficiency Improvement project type
2. Be reducing one of the three eligible Green House Gases: Carbon Dioxide (CO2), Methane (CH4) and Nitrous Oxide (N2O)
3. Not employ Official Development Assistance (ODA) under the condition that the credits coming out of the project are transferred to the donor country.
4. Not be applying for other certifications, to ensure there is no double counting of Credits
5. Demonstrate it's 'additionality' by using the United Nations Framework Convention on Climate Change's (UNFCCC) Large Scale Additionality Tool; and show that the project is not a 'business-as-usual' scenario
6. Make a net-positive contribution to the economic, environmental and social welfare of the local population that hosts it
The Gold Standard Versions
In July 2008 the Gold Standard Version 2.0 was released with sets of guidelines and manuals on the GS requirements, toolkits and other supporting documents to be used by project developers and DOEs. This relegated the previously applicable manuals to Version 1.0.
The Gold Standard Registry
Status of projects that apply for Gold Standard can be tracked on its registry. The Project Developers, Designated Operational Entities (DOEs) (also known as Validators), and Traders can open accounts with the registry. There are varous publicly available reports .
From http://en.wikipedia.org/
History
The Gold Standard for CDM (GS CER) was developed in 2003 by World Wide Fund for Nature (WWF), SouthSouthNorth, and Helio International. The Voluntary Gold Standard (GS VER), a methodology for use within the voluntary carbon market, was launched in May 2006. Both were the result of an extensive 12-month workshop and web-based consultation process conducted by an independent Standards Advisory Board composed of NGOs, scientists, project developers and government representatives.
The Gold Standard is open to any non-government, community based organization especially those with an interest in the promotion of sustainable development or a focus on climate and energy issues. As of March 2009, 60 environmental and development non-profit organizations internationally officially endorse The Gold Standard. These organizations support The Gold Standard as an effective tool for creating high-quality emission reduction projects that promote sustainable development and benefit local communities.
The Gold Standard is headquartered in the BASE (Basel Agency for Sustainable Energy) offices in Basel, Switzerland, with offices in Geneva, Rome and San Francisco. It employs local experts in Brazil, China, India and South Africa.
The Gold Standard is registered as a non-profit foundation under.
Eligibility
To be eligible for Gold Standard Certification, a project must:
1. Be an approved Renewable Energy Supply or End-use Energy Efficiency Improvement project type
2. Be reducing one of the three eligible Green House Gases: Carbon Dioxide (CO2), Methane (CH4) and Nitrous Oxide (N2O)
3. Not employ Official Development Assistance (ODA) under the condition that the credits coming out of the project are transferred to the donor country.
4. Not be applying for other certifications, to ensure there is no double counting of Credits
5. Demonstrate it's 'additionality' by using the United Nations Framework Convention on Climate Change's (UNFCCC) Large Scale Additionality Tool; and show that the project is not a 'business-as-usual' scenario
6. Make a net-positive contribution to the economic, environmental and social welfare of the local population that hosts it
The Gold Standard Versions
In July 2008 the Gold Standard Version 2.0 was released with sets of guidelines and manuals on the GS requirements, toolkits and other supporting documents to be used by project developers and DOEs. This relegated the previously applicable manuals to Version 1.0.
The Gold Standard Registry
Status of projects that apply for Gold Standard can be tracked on its registry. The Project Developers, Designated Operational Entities (DOEs) (also known as Validators), and Traders can open accounts with the registry. There are varous publicly available reports .
From http://en.wikipedia.org/
Biosequestration
Biosequestration is the capture and storage of the atmospheric greenhouse gas carbon dioxide by an increased volume or quality of photosynthesis (through practices such as growing more trees and genetic engineering respectively), as well as enhanced soil carbon in agriculture. It has been crucial to the initiation, evolution and preservation of life and is a key policy concept in the climate change mitigation debate. It does not generally refer to the sequestering of carbon dioxide in oceans (see carbon sequestration) or rock formations, depleted oil or gas reservoirs (see oil depletion and peak oil), deep saline aquifers, or deep coal seams (see coal mining) (for all see geosequestration) or through the use of industrial chemical carbon dioxide scrubbing.
From http://en.wikipedia.org/
Monday, December 7, 2009
Pertamina mengadakan Pertamina Blog Contest
wah.. hebat.. pertamina ngadain kontes.. mau ikutan juga ne. Tapi ntar dulu, karena saya belum dapat ide untuk menulisa jadi saya hanya akan memberi kabar ke teman-teman blogger Indonesia untuk mengikuti kontes ini.
Syarat untuk mengikuti kontes ini antara lain:
1. Situs bisa bebas memakai platform apa saja (Joomla!, wordpress, blogspot dan sebagainya)
2. Artikel yang dinilai berupa Review dan Harapan bloggers terhadap PT. Pertamina (Persero) atau produk-produk PT. Pertamina (Persero)
3. Optimalisasi kata kunci Pertamina Blog Contest yaitu : Kerja Keras Adalah Energi Kita. Menggunakan hasil pencarian dari google.com
4. Peserta wajib mendaftar dan memasang script kontes pada blog/websitenya.
Untuk lebih jelasnya, silahkan kunjungi http://www.pertaminablogcontest.com/
Syarat untuk mengikuti kontes ini antara lain:
1. Situs bisa bebas memakai platform apa saja (Joomla!, wordpress, blogspot dan sebagainya)
2. Artikel yang dinilai berupa Review dan Harapan bloggers terhadap PT. Pertamina (Persero) atau produk-produk PT. Pertamina (Persero)
3. Optimalisasi kata kunci Pertamina Blog Contest yaitu : Kerja Keras Adalah Energi Kita. Menggunakan hasil pencarian dari google.com
4. Peserta wajib mendaftar dan memasang script kontes pada blog/websitenya.
Untuk lebih jelasnya, silahkan kunjungi http://www.pertaminablogcontest.com/
Carbon finance
Carbon finance is a new branch of Environmental finance. Carbon finance explores the financial implications of living in a carbon-constrained world, a world in which emissions of carbon dioxide and other greenhouse gases (GHGs) carry a price. Financial risks and opportunities impact corporate balance sheets, and market-based instruments are capable of transferring environmental risk and achieving environmental objectives. Issues regarding climate change and GHG emissions must be addressed as part of strategic management decision-making.
The general term is applied to investments in GHG emission reduction projects and the creation (origination) of financial instruments that are tradeable on the carbon market.
Joint Implementation and Clean Development Mechanism
Clean Development Mechanism (CDM), is recognised through the Kyoto Protocol, allowing the offset of emissions in developed countries by the investment in emission reduction projects in developing countries like China, India or Latin America.
Joint Implementation (JI), is another mechanism, allowing investments in developed countries to generate emission credit for the same or another developed country..
Market value
The market for the purchase of carbon has grown exponentially since its conception in 1996.
The following is the estimated size of the worldwide carbon market according to the World Bank:
Volume (millions metric tonnes, MtCO2)
* 2005: 718 (330 in Main Allowances Markets & 388 in Project based transactions)
* 2006: 1,745 (1,134 in Main Allowances Markets & 611 in Project based transactions)
* 2007: 2,983 (2,109 in Main Allowances Markets & 874 in Project based transactions)
Dollars (millions of USD)
* 2005: 10,908 (7,971 in Main Allowances Markets & 2,937 in Project based transactions)
* 2006: 31,235 (24,699 in Main Allowances Markets & 6,536 in Project based transactions)
* 2007: 64,035 (50,394 in Main Allowances Markets & 13,641 in Project based transactions)
World Bank
The World Bank has created the World Bank Carbon Finance Unit (CFU). The World Bank CFU uses money contributed by governments and companies in OECD countries to purchase project-based greenhouse gas emission reductions in developing countries and countries with economies in transition. The emission reductions are purchased through one of the CFU's carbon funds on behalf of the contributor, and within the framework of the Kyoto Protocol's Clean Development Mechanism (CDM) or Joint Implementation (JI).
From http://en.wikipedia.org/
The general term is applied to investments in GHG emission reduction projects and the creation (origination) of financial instruments that are tradeable on the carbon market.
Joint Implementation and Clean Development Mechanism
Clean Development Mechanism (CDM), is recognised through the Kyoto Protocol, allowing the offset of emissions in developed countries by the investment in emission reduction projects in developing countries like China, India or Latin America.
Joint Implementation (JI), is another mechanism, allowing investments in developed countries to generate emission credit for the same or another developed country..
Market value
The market for the purchase of carbon has grown exponentially since its conception in 1996.
The following is the estimated size of the worldwide carbon market according to the World Bank:
Volume (millions metric tonnes, MtCO2)
* 2005: 718 (330 in Main Allowances Markets & 388 in Project based transactions)
* 2006: 1,745 (1,134 in Main Allowances Markets & 611 in Project based transactions)
* 2007: 2,983 (2,109 in Main Allowances Markets & 874 in Project based transactions)
Dollars (millions of USD)
* 2005: 10,908 (7,971 in Main Allowances Markets & 2,937 in Project based transactions)
* 2006: 31,235 (24,699 in Main Allowances Markets & 6,536 in Project based transactions)
* 2007: 64,035 (50,394 in Main Allowances Markets & 13,641 in Project based transactions)
World Bank
The World Bank has created the World Bank Carbon Finance Unit (CFU). The World Bank CFU uses money contributed by governments and companies in OECD countries to purchase project-based greenhouse gas emission reductions in developing countries and countries with economies in transition. The emission reductions are purchased through one of the CFU's carbon funds on behalf of the contributor, and within the framework of the Kyoto Protocol's Clean Development Mechanism (CDM) or Joint Implementation (JI).
From http://en.wikipedia.org/
European Union Emission Trading Scheme
The European Union Emission Trading System (EU ETS) is the largest multi-national, emissions trading scheme in the world, and is a major pillar of EU climate policy. The ETS currently covers more than 10,000 installations with a net heat excess of 20 MW in the energy and industrial sectors which are collectively responsible for close to half of the EU's emissions of CO2 and 40% of its total greenhouse gas emissions.
Under the EU ETS, large emitters of carbon dioxide within the EU must monitor and annually report their CO2 emissions, and they are obliged every year to return an amount of emission allowances to the government that is equivalent to their CO2 emissions in that year. In order to neutralise annual irregularities in CO2-emission levels that may occur due to extreme weather events (such as harsh winters or very hot summers), emission allowances for any plant operator subject to the EU ETS are given out for a sequence of several years at once. Each such sequence of years is called a Trading Period. The 1st EU ETS Trading Period expired in December 2007; it had covered all EU ETS emissions since January 2005. With its termination, the 1st phase EU allowances became invalid. Since January 2008, the 2nd Trading Period is under way which will last until December 2012. Currently, the installations get the allowances for free from the EU member states' governments. Besides receiving this initial allocation on a plant-by-plant basis, an operator may purchase EU allowances from others (installations, traders, the government.) If an installation has received more free allowances than it needs, it may sell them to anybody.
In January 2008, the European Commission proposed a number of changes to the scheme, including centralized allocation (no more national allocation plans) by an EU authority, a turn to auctioning a greater share (60+ %) of permits rather than allocating freely, and inclusion of other greenhouse gases, such as nitrous oxide and perfluorocarbons. These changes are still in a draft stage; the mentioned amendments are only likely to become effective from January 2013 onwards, i.e. in the 3rd Trading Period under the EU ETS. Also, the proposed caps for the 3rd Trading Period foresee an overall reduction of greenhouse gases for the sector of 21% in 2020 compared to 2005 emissions. The EU ETS has recently been extended to the airline industry as well, but these changes will not take place until 2012.
From http://en.wikipedia.org/
Under the EU ETS, large emitters of carbon dioxide within the EU must monitor and annually report their CO2 emissions, and they are obliged every year to return an amount of emission allowances to the government that is equivalent to their CO2 emissions in that year. In order to neutralise annual irregularities in CO2-emission levels that may occur due to extreme weather events (such as harsh winters or very hot summers), emission allowances for any plant operator subject to the EU ETS are given out for a sequence of several years at once. Each such sequence of years is called a Trading Period. The 1st EU ETS Trading Period expired in December 2007; it had covered all EU ETS emissions since January 2005. With its termination, the 1st phase EU allowances became invalid. Since January 2008, the 2nd Trading Period is under way which will last until December 2012. Currently, the installations get the allowances for free from the EU member states' governments. Besides receiving this initial allocation on a plant-by-plant basis, an operator may purchase EU allowances from others (installations, traders, the government.) If an installation has received more free allowances than it needs, it may sell them to anybody.
In January 2008, the European Commission proposed a number of changes to the scheme, including centralized allocation (no more national allocation plans) by an EU authority, a turn to auctioning a greater share (60+ %) of permits rather than allocating freely, and inclusion of other greenhouse gases, such as nitrous oxide and perfluorocarbons. These changes are still in a draft stage; the mentioned amendments are only likely to become effective from January 2013 onwards, i.e. in the 3rd Trading Period under the EU ETS. Also, the proposed caps for the 3rd Trading Period foresee an overall reduction of greenhouse gases for the sector of 21% in 2020 compared to 2005 emissions. The EU ETS has recently been extended to the airline industry as well, but these changes will not take place until 2012.
From http://en.wikipedia.org/
EU Allowances
EU Allowances are Climate credits (or Carbon credits) used in the European Union Emissions Trading Scheme (EU ETS). EU Allowances are issued by the EU Member States into Member State Registry accounts. By April 30 of each year, operators of installations covered by the EU ETS must surrender an EU Allowance for each ton of CO2 emitted in the previous year.
From http://en.wikipedia.org/
From http://en.wikipedia.org/
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