Presentation on theme: "Carbon Credit Business The Global Direction: Marketplace and Potential Facilitator: Dr. Paul Abolo."— Presentation transcript:
Carbon Credit Business The Global Direction: Marketplace and Potential Facilitator: Dr. Paul Abolo
Carbon Credit Business The Global Direction: Marketplace and Potential Marketplace Global Direction Potential
Carbon Credit Business The Concept of Carbon Trading Based on recognition that developed countries are principally responsible for high levels of carbon emission. Due to 150 years of industry activities Heavier burden on developed nations through Annex 1 Parties (mostly developed countries) have emissions limitations Non-Annex 1 Parties (developing countries) have no emissions limitation
The Global Marketplace Compliance Market (CM) – Annex 1 Parties Voluntary Market (VM) – Non-Annex 1 Parties
Global Carbon Marketplace II The Compliance Market Mandatory limitations to how much GHG they can emit. Any excess would need to be bought from somewhere. Any surplus can be sold to those who exceed the quota. The Voluntary Market No mandatory limitations on how much GHG they can emit They create programs and methods to reduce their emission from what it used to be and sell it to the those in the CM who are unable to keep to their mandatory limitations
Voluntary Marketplace How do we create the commodity? Clean Development Mechanism (CDM) The platform provided by the policy (KP) and United Nations Framework Convention on Climate Change (UNFCCC), in countries like Nigeria; to participate in this trade at a global level. Avenue for generating carbon credits through Renewable Energy advocacy, promotion, education and solutions Adaptation of sustainable development practices such as solar technologies, energy efficient lighting, biofuels for transport, cooking, BRT, etc.
Global Direction Global Direction &Trend I Shift in investor-focus Citigroup’s $50 billion green initiative and a commitment of $10 billion to reducing their own carbon footprints in its 14,500 offices worldwide Investment of $31 billion over the next 10 years in “wind farms, biofuels, solar panels and other eco-friendly technologies by Citigroup Introduction of the worldwide Dow Jones Sustainability Group Index (DJSGI). Joint capitalization of 4.4 trillion US dollars. The lists of financial institutions that are licensed by DJSGI include Vereinsbank, Gerling, Nikki, ING, Rabobank, Westpac and Union Investment.
Global Direction &Trend II Google invested over US$1billion in wind and solar energy to gain attractive financial returns; generating over 2GW of electricity each year. Recently invested US$94 million in large-scale solar photovoltaic projects in California. DuPont saved $3billion by drastically reducing greenhouse emission and associated energy use.
Global Direction &Trend III GE saved $12.8 million by upgrading lighting in their plants from the regular lighting devices to the high efficiency lights in their plants. Ford Motor Company reduced their carbon emission by 15% by eliminating energy-intensive drying equipment. Saved another 20% in drying time
Potentials Pioneer status Belong to elitist group of Environmentalists Engage before Nigeria becomes a Compliance Market Engage the future now – ahead of the curve Business Opportunity Low-entry barrier now
Potentials II Creating a just world To contribute to humanity / make impact The essence of your professional life? Save lives – clean environment Reduce Lung Cancer Reduce Hearing Impairment Reduce Accidental Deaths, etc. Reduce Joblessness
Potentials III Global Environmental Policies At the UN Climate Summit in September 2014, there were pledges to raise over $200 billion by 2015 for climate change, through Green Bonds and shifting assets to clean energy. Additionally allocate over $18 billion to developing countries between 2014 and 2020 for mitigation and adaptation Creation of $30 trillion climate risk investment framework is in the pipeline.
The Future The Future - Nigeria Potential to inject $1.25 billion into the Nigeria economy from sales of carbon credit $18 billion in investments from implementation of clean energy technology N34.4 Billion / year from Deforestation Avoidance Challenges turned to potentials: Poor National Power Generation – Provide generation Private Power Generation - Provide Alternative Poorly managed waste – used to generate power Poverty