1. Providing critical insights into energy and environmental markets www.pointcarbon.com Overview of the JI Market Olga Gassan-zade Point Carbon November 14, Nairobi

2. Providing critical insights into energy and environmental markets www.pointcarbon.com About Point Carbon Founded in 2000 Focus: carbon, power and gas markets Analysis, forecasting and news for all market segments Risk management and advisory services 90+ employees Oslo (HQ), Kyiv, London, Washington, Brussels, Zurich, Tokyo 12,000+ subscribers

3. Providing critical insights into energy and environmental markets www.pointcarbon.com Market Activity Forecast

4. Providing critical insights into energy and environmental markets www.pointcarbon.com Overview of JI Activities CDMJI # Projects/ transaction s Total volume -2012 (MtCO2e) # Projects/ transactions Total volume -2012 (MtCO2e) Projects (total) 3,3182,147671354 Projects (PDD) 1,5091,754233173 Transactions2687008263,7

5. Providing critical insights into energy and environmental markets www.pointcarbon.com Closing Prices, H1 2006 Contract category CDM (€/t)JI (€/t) 1. VERs in case of no CERs/ERUs4-53-5 2. Standard off take, non-firm volume,6-124-6 3. Firm volume, with preconditions10-166-9 4. Guaranteed delivery, no preconditions16-18n.a

6. Providing critical insights into energy and environmental markets www.pointcarbon.com Buyers on JI Market Unknown, 1% Private 25% Governments 64% Funds 10%

7. Providing critical insights into energy and environmental markets www.pointcarbon.com Project Types, CDM and JI 18% 27% 4% 39% 12% Energy Efficiency 15% 34% Industrial 18% Renewable 24% Waste 8% LULUCF 1% Fugitive 19% 2% 5% 49% 22% 2% Fugitive 10% Industrial, 38% 19% Waste 12% 18% LULUCF 2% Other 1% Energy Efficiency Renewable CDMJI Inner circle - # of projects Outer circle - volume

8. Providing critical insights into energy and environmental markets www.pointcarbon.com CDM, PDDs by Volume, Mt 0 100 200 300 400 500 600 700 China India Brazil Korea South Africa Mexico Argentina Nigeria Chile Thailand

9. Providing critical insights into energy and environmental markets www.pointcarbon.com JI PDDs by Volume, MT 0 5 10 15 20 25 30 35 40 Germany Russian Federation Ukraine Romania Bulgaria Czech Republic Hungary Poland New Zealand Estonia Slovakia Lithuania

10. Providing critical insights into energy and environmental markets www.pointcarbon.com JI Country Rating Up-date: 9 October 2006 Country Rating JI (Last rating) Rating AAUs (Last rating) 1. (1)RomaniaBBB+(BBB+)B+(B) 2. (2)BulgariaBBB(BBB)B(B-) 3. (3)PolandBBB-(BBB-)CCC(CCC) 4. (4)HungaryBB(BB)CCC+(CCC) 5. (6)UkraineBB(BB-)B-(B-) 6. (5)EstoniaBB-(BB-)CC+(CC+) 7. (7)Czech Rep.B+(B+)B+(B+) 8. (8)New ZealandB(B)-(-) 9. (9)RussiaB(B-)CCC+(CCC) 10. (10)SlovakiaCCC(CCC+)B+(B)

11. Providing critical insights into energy and environmental markets www.pointcarbon.com Recent Developments Project volumes have grown significantly in Russia and Ukraine Ukraine: 50 LoEs; Russia: 30 LoEs EU ETS has limited project activities in new MS CEEs JISC impact on the market:  Attention  Certainty  Push for Track 1  Contradictory price signals

12. Providing critical insights into energy and environmental markets www.pointcarbon.com Outlook JI to scale down in Bulgaria and Romania due to EU ETS Animal waste management – unexplored possibility? Future of JI belongs to Russia and Ukraine New countries: Belarus, Kazakhstan?

13. Providing critical insights into energy and environmental markets www.pointcarbon.com Thank you for your attention! Olga Gassan-zade Point Carbon, Kiev Direct tel.: +380-050-38-38-968 Email: ogz@pointcarbon.com