Carbon Credits

1. Carbon Credits Does money really grow on trees? ECO CLUB Shoaib Ali Btech -1st year computer science Presented by: D.V.S.I.E.T

2. Can computers can really help eco………………? HOW………...?

3. So where did all this start? • The United National Framework Convention on Climate Change, commonly known as the Earth Summit, held in Rio de Janeiro in 1992 was where it all started.

4. Climate Change • Article 2 of the convention directly addressed the need to stabilize greenhouse gas emissions “at a level that would prevent dangerous anthropogenic (human caused) interference with the climate system.”

5. Carbon Offset Suppliers (over-the-counter) There are many carbon offset suppliers in the voluntary markets. These organizations link consumers seeking to offset their emissions with opportunities provided by different types of project.

6. The Carbon Credit Market Process • Contract • Worksheets • Supporting documents Enrollment Sale Certification Verification Registration $

7. All types of forest carbon credits require: • Forest land certification • FSC, SFI or Tree Farm

8. 1. About Afreximbank 1.1 Background: • Established in 1993 as a multilateral financial institution. • Shareholders include African governments and/or their Central Banks; African Multilaterals (Class A Shareholders); African private investors (Class B Shareholders); and non-African investors (Class C). • Authorized capital = US$750 million. • Mandated to finance and promote intra- and extra-African trade.

9. 1.2 Vision, Mission and Mandate 1.2.1 Vision To be the Trade Finance Bank for Africa 1.2.2 Mission To stimulate a consistent expansion, diversification and development of African trade while operating as a first class, profit-oriented, socially responsible financial institution and a centre of excellence in African trade matters.

10. 3. Why Afreximbank Carbon Financing Programme? • It will help the development of environmentally-friendly projects in Africa. • Access to finance will encourage entrepreneurs to think of using environmentally-friendly technologies that may be more expensive than traditional technologies. • Such a Programme will help attract to Africa the huge funds devoted to buying carbon credits under the CDM. Currently most of these funds go to Asia and Latin America.

12. 2012 and beyond Source: VerifAvia

13. Indian carriers & EU Administering Member State

14. How are 2012 allowances allocated? Average 2004-2006 emissions: 200,000 tonnes 2012 Cap: 194.000 Free allowances: 165.000 Auctioned allowances: 29.000

15. How will the 165,000 free allowances be allocated between airlines? 2010 Tonne-Kilometers = Σ (Payload x Distance) Calculate Tonne-Kilometers of Air Greece: 500,000 TK (50 %) Calculate Tonne-Kilometers of CleanAir: 300,000 TK (30 %) Calculate Tonne-Kilometers of PropellAir: 200,000 TK (20 %) TOTAL Tonne-Kilometers: 1,000,000 TK 2012 Free Allowances: 165,000 Air Greece: 82,500 CleanAir: 49,500 PropellAir: 33,000

16. How much did my airline emit in 2012?

17. Does my airline have enough allowances for 2012?

18. Concluding Remarks • Inclusion of aviation in EU ETS is a reality • Rules are relatively clear • EU ETS is somewhat flexible • Several Indian airlines are required to participate • Actual impact to be evaluated in 2013 and beyond

19. Kyoto Protocols??? • As a part of United National Framework Convention on Climate Change the “Kyoto Protocol” was established to create policies and measures to reduce greenhouse gas emissions.

20. Greenhouse Gases • Greenhouse gases, which include water vapor (H2O), ozone (O3), carbon dioxide (CO2), methane (CH4), and nitrous oxide (N20), are able to absorb and re-emit infrared radiation, while not blocking visible light.

21. Back to the Kyoto Protocols • The Kyoto Protocol requires industrialized nations to reduce their greenhouse gas emission to approximately 95 percent of their 1990 levels by 2008-2012.

22. Documents Needed for XFO Enrollment • Forestry Offset Contract (XFO contract) • Forestry Offset Enrollment Worksheet(s) • FSA, Forest Service or NRCS maps of enrolled areas • Copies of supporting documents (i.e., Planting records, CRP contracts, forestry management plan, etc.) • Evidence of ownership document (e.g., copy of deed) • Supporting documents for direct measurement calculations (if applicable) • Signed Letter of Intent to maintain forest carbon stock beyond 2010 • A voided check from your checking account so that we can set up electronic transfer of funds

26. EcoSecuritiesRailways, Biofuels & CDM Paul Soffe, 5th July

27. Company History Jan 1997EcoSecurities formed Nov 1997EcoSecurities develops first carbon verification service in the world Sept 2003EcoSecurities develops one of the first methodologies to be approved by the CDM Executive Board Nov 2004EcoSecurities’ NovaGerar landfill gas project is the first CDM project worldwide to be registered Oct 2005La Esperanza project, structued by EcoSecurities, receives carbon credits from first-ever issuance Nov 2005EcoSecurities Conusltancy Services is voted the world’s leading greenhouse gas advirosy firm for the 5th year in a row Dec 2005EcoSecurities successfully lists on AIM June 2007 Strategic partnership with Credit Susiss

28. What we do Consultancy services Create and buy carbon credits Develop and finance projects Sell credits from our carbon credit portfolio

29. Where we are Dublin • 2 Offices in China • Beijing • Chengdu Oxford Paris* The Hague New York Madrid* Manila Los Angeles Casablanca* Amman* Kuala Lumpur Mexico City Jakarta Karachi* Mumbai Rio de Janeiro Johannesburg* Santiago de Chile Bangkok Headcount June 2005 27 employees Dec 2005 90 employees August 2006 178 employees Dec 2006 Target of over 200 employees * No legal presence but EcoSecurities has entered into contracts with individuals to act as EcoSecurities representatives

30. Feasibility and Due Diligence Documentation Registration by Executive Board Implementation Public consultation Transaction of CERs Validation by Operational Entity Issuance of CERs by EB 8 2 7 3 5 6 10 4 1 9 Approval by National Authority Monitoring and Verification Steps in the CDM process

31. Factors of a “good project”  • Volume = ~10,000 CERs/yr • Biodiesel: 5 million litres/4,400 tonnes • Ethanol: 8 million litres/5,840 tonnes • No direct or indirect (i.e. through activity displacement) deforestation from plantation • Use of biofuels within developing country • Producers and users of biofuel must agree contractually on credit ownership

32. Biodiesel case study Plantation Local distribution Production facility

33. 2. Sequestration Potential • Eligible projects – the biofuel crop must grow to between 2-5 metres in height eg. Jatropha • Must be on land not deforested since 1990 • tCER potential is something in region of 15 tCERs per ha/year. • tCERs bought at discounted price to CER and cannot be sold to EU companies. • Could be significant income stream

34. Bush Administration’s rejection of the Kyoto Protocol • Reasons for the rejection: • The Protocol exempted developing countries from binding targets. • Implementing the Kyoto target hurt US economy. • Efforts to re-engage the U.S. in international process: • High-level mission, summits, and high-level consultations. • Essential elements of the Kyoto architecture, such as legally binding targets and timetable, and differentiated commitments for developing countries.

35. Conclusion • The Kyoto Protocol: • Significant first step in addressing climate change. • Has entered into force after time-consuming and difficult negotiations. • Many countries stepped up policies and measures to implement the Protocol, although gaps still remain and improvements should be pursued. • Climate regime beyond 2012: • Necessary for deeper reductions in global emissions. • Innovative approaches building on current practices should be pursued to achieve broadest possible participation.