Description
A presentation describes on demystifying carbon credits.
Demystifying Carbon Credit
A Group 5 Presentation
Contents
? Global Warming - Causes and Effects ? Defining Carbon Credit
? Kyoto Protocol
? Flexible Mechanisms ? Regulated Carbon Market ? Regulated Carbon Market - Factsheet
? Voluntary Carbon Market
? Voluntary Carbon Market - Factsheet ? Future Challenges
Causes of Global Warming
Effects of Global Warming
? ? ?
Increase in average atmospheric temperature Rise in mean sea level Abrupt weather change
?
More frequent heat waves and tropical cyclones
Defining Carbon Credit
? A key component of national and international attempts
to mitigate the growth in concentrations of greenhouse gases (GHGs). ? One Carbon Credit is equal to one ton of Carbon-dioxide
equivalent.
? There are two distinct types of Carbon Credit Markets: Regulated and Voluntary.
Kyoto Protocol
? An international environmental treaty . ? Adopted on 11 December, 1997 in Conference of Parties to the UNFCCC (COP – 3). ? Came into force on 16 February, 2005.
? Establishes legally binding commitment for the
reduction of greenhouse gases. ? An international agreement between more than 170 countries.
Flexible Mechanisms
AAU $$$
IET Annex 1
ERU $$$
Annex 1 JI
CER $$$
CDM non-Annex1
CER – Certified Emission Reduction ERU – Emission Reduction Unit AAU – Assigned Amount Unit
Regulated Carbon Market
Regulated Market
Allowances
Project Based Credits
AAU’s
EUA’s
CER’s
ERU’s
Regulated Carbon Market
Regulated Carbon Market
Voluntary Carbon Market
Voluntary Market
Carbon Credit Standards
Carbon Neutrality Standards
Allowances Project Based Credits CCX Plan Vivo CCBA VCS
CN Protocol
Gold Standard
VER
Voluntary Carbon Market
Voluntary Market (In Million Tonnes)
140 120 100 80 60 40 20 0 2007 2008 65
Voluntary Market (In Million Tonnes)
123
Voluntary Carbon Market
Increase In Carbon Market
Reuters CER Index
€ 25.00 € 22.85 € 20.00 € 18.37 € 12.71 € 10.00 € 7.48 € 5.00 € 0.00 € 12.84 € 13.54
Minimum Price Maximum Price
€ 15.00
2007
2008
2009
• For the year 2009, the data is taken till 6th of July.
Future Challenges
?
? ? ?
Challenges for organizations in Annex – 1 Countries.
Businesses turning into financially nonviable. Carbon Liability becoming Carbon Opportunity. Possibility of Carbon Tax for every corporate in future.
Thank You
doc_733253757.ppt
A presentation describes on demystifying carbon credits.
Demystifying Carbon Credit
A Group 5 Presentation
Contents
? Global Warming - Causes and Effects ? Defining Carbon Credit
? Kyoto Protocol
? Flexible Mechanisms ? Regulated Carbon Market ? Regulated Carbon Market - Factsheet
? Voluntary Carbon Market
? Voluntary Carbon Market - Factsheet ? Future Challenges
Causes of Global Warming
Effects of Global Warming
? ? ?
Increase in average atmospheric temperature Rise in mean sea level Abrupt weather change
?
More frequent heat waves and tropical cyclones
Defining Carbon Credit
? A key component of national and international attempts
to mitigate the growth in concentrations of greenhouse gases (GHGs). ? One Carbon Credit is equal to one ton of Carbon-dioxide
equivalent.
? There are two distinct types of Carbon Credit Markets: Regulated and Voluntary.
Kyoto Protocol
? An international environmental treaty . ? Adopted on 11 December, 1997 in Conference of Parties to the UNFCCC (COP – 3). ? Came into force on 16 February, 2005.
? Establishes legally binding commitment for the
reduction of greenhouse gases. ? An international agreement between more than 170 countries.
Flexible Mechanisms
AAU $$$
IET Annex 1
ERU $$$
Annex 1 JI
CER $$$
CDM non-Annex1
CER – Certified Emission Reduction ERU – Emission Reduction Unit AAU – Assigned Amount Unit
Regulated Carbon Market
Regulated Market
Allowances
Project Based Credits
AAU’s
EUA’s
CER’s
ERU’s
Regulated Carbon Market
Regulated Carbon Market
Voluntary Carbon Market
Voluntary Market
Carbon Credit Standards
Carbon Neutrality Standards
Allowances Project Based Credits CCX Plan Vivo CCBA VCS
CN Protocol
Gold Standard
VER
Voluntary Carbon Market
Voluntary Market (In Million Tonnes)
140 120 100 80 60 40 20 0 2007 2008 65
Voluntary Market (In Million Tonnes)
123
Voluntary Carbon Market
Increase In Carbon Market
Reuters CER Index
€ 25.00 € 22.85 € 20.00 € 18.37 € 12.71 € 10.00 € 7.48 € 5.00 € 0.00 € 12.84 € 13.54
Minimum Price Maximum Price
€ 15.00
2007
2008
2009
• For the year 2009, the data is taken till 6th of July.
Future Challenges
?
? ? ?
Challenges for organizations in Annex – 1 Countries.
Businesses turning into financially nonviable. Carbon Liability becoming Carbon Opportunity. Possibility of Carbon Tax for every corporate in future.
Thank You
doc_733253757.ppt