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The Global Carbon Market:

The Global Carbon Market:. Where the sky is the limit. Table of Contents. The Kyoto Protocol: What is it? The Carbon Market Potential Projects Project Stages EcoTraders Ltd. About EcoTraders Clients Conclusions. Kyoto Protocol: What is it?. The Kyoto Protocol (KP) :

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The Global Carbon Market:

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  1. The Global Carbon Market: Where the sky is the limit

  2. Table of Contents • The Kyoto Protocol: What is it? • The Carbon Market • Potential Projects • Project Stages • EcoTraders Ltd. • About EcoTraders • Clients • Conclusions

  3. Kyoto Protocol: What is it? The Kyoto Protocol (KP) : • International agreement through the United Nations for developed countries to reduce their greenhouse gas (GHG) emissions. • The Goal: To reduce the global emissions of GHGs, which cause climate change:

  4. Kyoto Protocol: What is it? The KP Method: KP uses the marketto reduce GHG emissions in the most cost effective manner: • Firms reduce their GHG emissions and sell the reductions through a carbon market. • Carbon market: New market where the commodity traded is tons of carbon not emitted to the atmosphere (i.e. emission reductions). • Buyers: Private firms, governments, brokerage houses. The KP Rational: 1. GHGs globally affect the climate - it doesn’t matter geographically where emissions are reduced. 2. To promote investment in and introduction of new technologies. 3. To reduce GHG emissions in the most cost-effective way.

  5. The Carbon Market: Demand Germany: Commitment to - 261 Mton CO2 Germany has divided its Kyoto GHG emission reduction target between factories in the country. Cement Factory in Berlin Commitment to 100,000 tons CO2 Reducing 100,000 tons GHG emissions from the factory costs $20 per ton.

  6. The Carbon Market: Supply Romania: A company captures landfill gas (methane) emissions from old landfill. Cost: $500,000 EcoTraders: Develops the GHG-reduction project Project reduces 100,000 tCO2 that would have been emitted to the atmosphere EcoTraders’ role • To develop the project using UN guidelines. • To have project registered by UN. • To prove to the UN that the 100,000 tons of landfill gas emissions have been reduced. • To broker the carbon credits. Romanian company’s role • To construct and operate the project.

  7. The Carbon Market: Transaction Romanian company: Landfill gas project Cost: $500,000 Germany: Commitment to -261 Mton CO2 Reduction of 100,000 tCO2 Cement Factory in Berlin Commitment to 100,000 tCO2 Price: $8 per ton EcoTraders brokers these 100,000 tons for the Romanian firm on the carbon market Revenues: $800,000

  8. The Carbon Market • Projects emission reductions may range from 5,000 tCO2 for a small project to 300,000 tCO2 reduced per year in a large project. • Market prices are dependent on a number of factors, such as: • Whether the emission reductions have already been approved by the UN • Project risk factors • Market supply and demand

  9. Carbon: A Growing Market Since its inception in 2003, the carbon market has grown by over 200%! Future emission reduction targets are being increased and the carbon market should grow in the future as demand for emission reductions rises.

  10. Greenhouse Gas (GHG) Global Warming Potential (GWP) over 100 years Sector Project Opportunity Carbon dioxide CO2 1 (Baseline – the GWP for the GHGs listed below are expressed as being "times the GWP of carbon dioxide".) All industries Energy Cement • Renewable energy: Hydropower; Biomass; Wind; Solar • Improve energy efficiency • Switch to lower-carbon fuels Co-generation: Natural gas; Biomass Increase in additives use (Fly Ash) Methane CH4 21 Waste management All industries using natural gas Capture of landfill gas Anaerobic treatment for animal wastes Improve natural gas delivery system Nitrous oxide N2O 310 Chemical Industry Production of adipic acid Production of nitric acid Production of ammonia (fertilizer) Hydrofluorocarbons HFC 140-11,700 Chemical Industry HFC-23 breakdown Perfluorocarbon PFC 6500-9200 Aluminium Industry Anode effect mitigation Sulphur hexafluoride SF6 23,900 Magnesium Industry Cover gas switch Potential Projects

  11. Project Stages: Development Steps to develop GHG-reduction projects that the UN will register and that will generate verifiable GHG reductions: • Data collection • Project Idea Note (PIN) for initial approval from government bodies • Baseline study and project feasibility assessment • Monitoring plan preparation • Project Design Document (PDD) (project documentation submitted to the UN) • National approval for the project from government bodies • Stakeholders’ comments event • Project validation Project registration with the United Nations

  12. Project Stages: Brokerage Steps to broker emission reductions on the carbon market: • Fulfilling project requirements • Consistent data monitoring and archiving • Calculation of emission reductions • Verification of project and emission reductions Brokering emission reductions

  13. About EcoTraders Ltd. • EcoTraders is a dynamic and innovative company that operates in the global Carbon Market: • EcoTraders develops and manages GHG-emission reduction projects. • EcoTraders is a carbon credit broker. • EcoTraders has extensive experience in all stages of project development and brokerage. • EcoTraders has initiated and manages 14 projects:

  14. EcoTraders’ Clients 7 Fuel-Switch Projects Dead Sea Bromide: Switch from heavy fuel oil to natural gas in its ovens Offis Textile: Switch from heavy fuel oil to landfill biogas • In Validation process Dead Sea Works: Switch from heavy fuel oil to natural gas in its ovens and power plant AIPM: Switch from heavy fuel oil to natural gas in its steam boilers and power plant • Writing PDD Dead Sea Magnesium: Switch from heavy fuel oil to natural gas in its ovens Periclas: Switch from heavy fuel oil to natural gas in its ovens Rotem Amfert: Switch from heavy fuel oil to natural gas in its ovens

  15. EcoTraders’ Clients 3 New Natural Gas-fired Power Plants AIPM: 200MW co-generation (electricity and heat/steam) • Writing PDD Dalkia; 80MW for desalination plan (electricity and heat/steam) • Writing PDD ICL: 400 MW co-generation (electricity and heat/steam)

  16. EcoTraders’ Clients 2 Cutting-edge Industrial Technologies Projects Dead Sea Magnesium: New production technology to reduce GHG emissions Nesher Cement: Energy efficient cement grinding technology • Developed new methodology for project • Registered • Preparing for Verification 2 Landfill Gas Collection and Treatment Projects Dan Assoc. Region of Towns: Hiriya Landfill Drom Yehuda Assoc. Region of Towns: Retamim Landfill • Registered • In Validation process

  17. Conclusions • The Kyoto Protocol’s carbon market provides a tremendous opportunity to acquire and finance technology investment. • The carbon market has grown substantially and further growth is projected. • EcoTraders is strategically placed to develop a wide variety of new GHG-emission reduction projects. • EcoTraders’ experience in all stages of project development and implementation means that we can advise companies on potential projects and guide them through the process to achieve quality emission reductions.

  18. Franceză street no 66-68 Sect.3, Bucharest Romania (t) +40-21-315-62-63 (f) +40-313-20-92 (m) +40-747-047-672 (e) office@irecson.ro (w) http://www.irecson.ro Thank you!

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