Presentation on theme: "The Global Carbon Market: Where the sky is the limit."— Presentation transcript:
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) : 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: Greenhouse Gases (GHGs) Chemical Formula Global Warming Potential (GWP) Carbon dioxideCO 2 1 MethaneCH 4 21 Nitrous oxideN2ON2O310 HFCsDepends on type45 to 9800 PFCsDepends on type10,000 to 14,000 Sulphur hexafluorideSF 6 23,900
Kyoto Protocol: What is it? The KP Method: KP uses the market to 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.
The Carbon Market: Demand Germany: Commitment to - 261 Mton CO 2 Cement Factory in Berlin Commitment to 100,000 tons CO 2 Reducing 100,000 tons GHG emissions from the factory costs $20 per ton. Germany has divided its Kyoto GHG emission reduction target between factories in the country.
Romania: A company captures landfill gas (methane) emissions from old landfill. Cost: $500,000 Project reduces 100,000 tCO 2 that would have been emitted to the atmosphere EcoTraders’ role 1.To develop the project using UN guidelines. 2.To have project registered by UN. 3.To prove to the UN that the 100,000 tons of landfill gas emissions have been reduced. 4. To broker the carbon credits. The Carbon Market: Supply EcoTraders: Develops the GHG-reduction project Romanian company’s role 1. To construct and operate the project.
Germany: Commitment to -261 Mton CO 2 Cement Factory in Berlin Commitment to 100,000 tCO 2 Romanian company: Landfill gas project Cost: $500,000 Reduction of 100,000 tCO 2 The Carbon Market: Transaction EcoTraders brokers these 100,000 tons for the Romanian firm on the carbon market Price: $8 per ton Revenues: $800,000
The Carbon Market Projects emission reductions may range from 5,000 tCO 2 for a small project to 300,000 tCO 2 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
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.
Potential Projects Cover gas switchMagnesium Industry23,900Sulphur hexafluoride SF 6 Anode effect mitigationAluminium Industry6500-9200Perfluorocarbon PFC HFC-23 breakdownChemical Industry140-11,700Hydrofluorocarbons HFC Production of adipic acid Production of nitric acid Production of ammonia (fertilizer) Chemical Industry310Nitrous oxide N 2 O Capture of landfill gas Anaerobic treatment for animal wastes Improve natural gas delivery system Waste management All industries using natural gas 21Methane CH 4 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) All industries Energy Cement 1 (Baseline – the GWP for the GHGs listed below are expressed as being "times the GWP of carbon dioxide".) Carbon dioxide CO 2 Project OpportunitySectorGlobal Warming Potential (GWP) over 100 years Greenhouse Gas (GHG)
Project Stages: Development Steps to develop GHG-reduction projects that the UN will register and that will generate verifiable GHG reductions: 1. Data collection 2. Project Idea Note (PIN) for initial approval from government bodies 3. Baseline study and project feasibility assessment 4. Monitoring plan preparation 5. Project Design Document (PDD) (project documentation submitted to the UN) 6. National approval for the project from government bodies 7. Stakeholders’ comments event 8. Project validation Project registration with the United Nations
Project Stages: Brokerage Steps to broker emission reductions on the carbon market: 1. Fulfilling project requirements 2. Consistent data monitoring and archiving 3. Calculation of emission reductions 4. Verification of project and emission reductions Brokering emission reductions
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:
EcoTraders’ Clients Offis Textile: Switch from heavy fuel oil to landfill biogas AIPM: Switch from heavy fuel oil to natural gas in its steam boilers and power plant Periclas: Switch from heavy fuel oil to natural gas in its ovens 7 Fuel-Switch Projects Dead Sea Bromide: Switch from heavy fuel oil to natural gas in its ovens Dead Sea Works: Switch from heavy fuel oil to natural gas in its ovens and power plant Dead Sea Magnesium: Switch from heavy fuel oil to natural gas in its ovens Rotem Amfert: Switch from heavy fuel oil to natural gas in its ovens In Validation process In Validation process Writing PDD Writing PDD
ICL: 400 MW co-generation (electricity and heat/steam) 3 New Natural Gas-fired Power Plants Dalkia; 80MW for desalination plan (electricity and heat/steam) AIPM: 200MW co-generation (electricity and heat/steam) EcoTraders’ Clients Writing PDD Writing PDD
2 Cutting-edge Industrial Technologies Projects Dan Assoc. Region of Towns: Hiriya Landfill Drom Yehuda Assoc. Region of Towns: Retamim Landfill Nesher Cement: Energy efficient cement grinding technology Dead Sea Magnesium: New production technology to reduce GHG emissions Registered Registered Preparing for Verification Preparing for Verification Registered Registered EcoTraders’ Clients 2 Landfill Gas Collection and Treatment Projects In Validation process In Validation process Developed new methodology for project Developed new methodology for project
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.
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