Carbon Offsets Daily

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Carbon Pollution Reduction Scheme

| Sourced From |

WONG: Thank you very much for coming. I wanted to make some comments about tomorrow’s Liberal party room and Coalition party room meeting. It seems self-evident that Mr Turnbull is going to get some amendments through the party room. Even the Liberal party are going to be able to meet that low bar.

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Australia government has big lead as carbon vote looms: poll

CANBERRA (Reuters) – Australia’s government has opened a near record 16-point gap over opposition conservatives, who are in disarray over an emissions trading scheme to be voted on by parliament within weeks, a survey showed on Tuesday.

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  • Author:
  • Published: May 10th, 2009
  • Category: India
  • Comments: None

Carbon credit prices up on demand gap

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MUMBAI: After witnessing a trough for over six months, carbon credit prices in the spot market have finally improved to about euro 12 per unit.

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  • Published: May 9th, 2009
  • Category: Europe
  • Comments: Comments Off on Sign Up for EU CO2 Conference

Sign Up for EU CO2 Conference

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Gallehr Sustainable Risk Management GmbH

According to the EU Emissions Trading Directive 2008/101/EC, from 2012 on every international airline with commercial flights from and to the EU area will have to participate in the mandatory EU CO2 Emissions Trading Scheme.

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New Zealand-Carbon enmissions from livestock

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FARMERS and livestock owners are joining together to fight against the inclusion of livestock agricultural emissions in any emission trading scheme.

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EU steel reaps $1.5 bln benefit from carbon trade

| Sourced From Reuters |

LONDON, April 9 (Reuters) – European steelmakers received over $1 billion worth of unneeded carbon permits last year under the European Union’s Emissions Trading Scheme, EU data show, a benefit attributed to aggressive lobbying.

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Governments keep hunting for cheap CO2 credits

LONDON (Reuters) – The market for government-level emissions rights under the Kyoto Protocol is alive and well, mostly unfazed by the global economic downturn. Through the most opaque of the emissions trading schemes under the Kyoto climate change pact, nations comfortably below greenhouse gas targets can sell excess emissions rights to other countries in the form of credits called Assigned Amount Units (AAUs).

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EC to let Market Decide on Carbon Prices

| Sourced From International Centre for Trade and Sustainable Development |

The European Commission (EC) says it will not prop up Europes carbon market, despite continued plummeting prices. New lows for emissions permits are primarily linked to the global financial crisis of the past six months. The contraction of European industrial production – and associated carbon dioxide reductions – resulting from the economic downturn and speculation that carbon levels will remain low over the next year has triggered a flood of emissions permits on the market, which has caused prices to drop precipitously.

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Carbon exchanges cashing in amid EU slowdown

LONDON, Feb 17 (Reuters) – Carbon emissions exchanges are thriving, making as much as 2 million euros ($2.55 million) a week in revenues, Reuters data shows, just as European industry struggles to survive in the wake of the economic downturn.

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Coalition targets carbon policy gap

| Sourced From The Age |

THE Coalition will unveil a major policy on deforestation and agriculture in a renewed effort to take on the Rudd Government, which has faced wide-ranging criticism of its greenhouse targets and climate change policies.

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Australian Carbon Market: A Big Deal

The Reuters reports that the Australian over-the-counter (OTC) carbon trading market coughed up its biggest deal yet when 20,000 tons of carbon were sold forward at the rate of $19.51 a ton. The deal might be the biggest so far but there’s still a long way to go, what with the country’s per capita emissions being one of the highest in the world.

Though Australia is slated to launch a carbon cap-and-trade scheme in July 2010, an OTC carbon market has sprung up to cater to the demands of big polluters who are looking to purchase permits now in anticipation of price hikes once carbon trading begins in 2010. Permits in well- established carbon markets such as Europe are being traded at more than twice the Australian rate.

The 2010 scheme will cover 1,000 of Australia’s biggest polluters, that is, those who generate more than 25,000 tons of carbon emissions per year. Businesses will need to purchase a permit for each metric ton of carbon produced. The idea is to put a price on pollution so as to reduce Australia’s gigantic carbon footprint.

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INTERVIEW: Carbon Retirement – Co-Founder Dan Lewer

We recently caught up with Dan Lewer, the Co-Founder of the recently launched Carbon Retirement.

So what is your company all about?

Carbon Retirement was founded in 2008 by me and two colleagues. We wanted to offer a service focused on emission reductions. While we could see that there have been lots of interesting innovations in the voluntary market, we felt that it’s often difficult to evaluate the environmental benefits of offsetting projects. Retirement of allowances from EU Emission Trading Scheme – which is what we do – is a process that delivers unambiguous reductions in carbon emissions and we wanted to give everyone the opportunity to do it. We started taking orders in July this year.

How is Carbon Retirement different to other types of offsetting?

Existing types of offsetting work by investing in projects in the developing world that reduce emissions or absorb greenhouse gas from the atmosphere. Typical projects include tree planting and building renewable energy generators. Carbon Retirement is a fundamentally different approach – it works by buying heavy industry’s rights to release carbon dioxide.

What is the EU Emission Trading Scheme?

It’s a system that European governments use to support their commitments to reduce greenhouse gas emissions. It limits carbon dioxide emissions from a range of industries, including power generation, offshore extraction, cement production, iron and steel, paper and pulp and chemical processing. The EU Emission Trading Scheme is the world’s largest cap-and-trade scheme. In a cap-and-trade scheme, an authority allocates a fixed number of pollution permits to the participants. Each permit is a right to release pollution (in the EU Trading Scheme, each is the right to release one tonne of CO2). Permits can be traded between the participants. This creates a market in permits and a market price.

How is the price calculated?

One of our key principles is to be transparent about where our customers’ money goes. The price we charge is based on the market price of EUAs. For customers using our website, we add an admin fee of 10% (which pays the company’s overheads) and a ‘spread fee’ of 5%. The spread fee covers the risk of the price moving upward between the order being made and Carbon Retirement purchasing EUAs. If the price goes down, we reserve the surplus for retirement of further EUAs. This breakdown is published on our website. For organisations that are thinking about retiring more than a couple of tonnes, the price would work differently.

Why does the price of EUAs change?

Fundamentally, the market price of EUAs is determined by the perceived cost of complying with the reduction required by the EU Trading Scheme. During trading, the market participants’ views of the cost of achieving the reduction can change, which is why the EUA price changes. Energy markets are important drivers. When demand for energy is high, demand for EUAs to cover the generation rises too. Burning coal produces particularly large quantities of greenhouse gases, so the price of EUAs is sensitive to demand for coal.

Where do you buy EUAs from?

From an exchange, a market broker or a regulated participant in the market. EUAs are freely tradable between market participants, so the source of an EUA does not affect the environmental benefits of retiring it.

Project-based offsets often have social benefits. Are there any social benefits to taking EUAs out of circulation?

We don’t think we’re fence-sitting here by saying sort of. We facilitate emission reductions in Europe, and we’re dealing with major energy-intensive industries, so there’s less opportunity for helping out communities at the same time.

The social benefits of offsetting projects can be hard to measure and we need to remember that our aim here is to reduce emissions. Globally, emission reduction and mitigation of climate change will have plenty of social benefits. We’re focused on making sure the emission reductions happen.

How does your calculator work?

Our website gives individuals the option of calculating the emissions associated with flights, driving or other activities, and then retiring a corresponding number of allowances.

Once data has been entered into the calculator, we multiply it by emissions factors. For example, if you input that you have driven a certain number of miles in a large petrol car, we multiply that distance by a factor showing the greenhouse gases released for each mile.

The factors and methodology behind the calculator follow the UK government’s guidelines for calculating a carbon footprint.

Where can I go to find out more about climate change and the EU Emission Trading Scheme?

For the trading scheme, I’d recommend the European Commission’s website. There’s also a straightforward overview on Carbon Retirement‘s site. There is a wealth of information about climate change out there. The BBC’s website is a pretty good place to start.

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EUA Prices Plummet in July

The upward price trend of the EU Emission Trading Scheme (EU ETS) credits or the European Union Allowances (EUAs) over the last three months has been reversed as prices came tumbling down in July. The carbon market to a great extent is contingent upon the fuel prices – the EUA prices rose steadily in April, May and June as more and more power generators were compelled to switch to coal in the face of rising gas prices. Since coal’s carbon emissions are higher than that of gas, an increase in the usage of coal led to a greater demand and hence price of EUAs.

But now with price of gas going down and coal becoming more expensive, the former has become the preferred fuel which has caused EUA prices to go down as it is a cleaner fuel. The rise in their supply as a result of France issuing 130 million EUAs may have also acted as a contributory factor.

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