The basis for this development are the commitments of the developed countries and economies in transition in the Kyoto Protocol to reduce their green house gas (GHG) emissions in the period 2008–2012 at least by 5% compared to 1990 levels. The 15 member states of the former European Union (EU 15) have committed themselves to reduce their GHG emissions by 8%, corresponding to approximately 340 million t CO2 equivalent per year. By now the EU 15 has reduced its GHG emissions by 1,7%. Another 6,3 % or 270 million t CO2 equivalent per year still have to be reduced.
As preparation for the international emission trading system which will start in 2008 the European Union has implemented an internal emission trading scheme which started already in January 2005. Beside direct emission reductions in the member states some countries intend to utilise carbon credits from CDM and JI projects for their compliance. As a result to this an international demand for carbon credits from CDM and JI projects is emerging.
Carbon credits can be generated by reducing the so-called Kyoto GHG: CO2, CH4,N2O, PFC, HFC, SF6. Typical projects are:
- methane gas capture, such as: landfill gas, coal mine gas, biogas
- utilization of renewable energies such as: biomass, hydro power, wind energy
- fuel switch, such as: coal to gas or fuel oil, fossil fuels to renewable energies
- energy efficiency within the production of electricity and thermal energy
- energy efficiency or change of production processes in the industry e.g. within the production of steel, glass, ceramics, lime, cement, pulp and paper, fertiliser, refrigerants as well as in the chemical industry, refineries, fossil fuel exploration etc.
Emission reductions are internationally forced and financially supported by issuance of tradable carbon credits. Project activities can receive additional income by generating and selling carbon credits. This will raise investments in efficient modern and clean technologies and support progress, growth and sustainable development. Suppliers of technologies and producers of plants derive in turn benefits from the increasing global demand for modern and efficient plants.
CDM and JI offer advantages to both, developing and industrialised countries:
- Industrialised countries have additional opportunities to generate carbon credits that can be used for compliance in the EU Emission Trading Scheme.
- Bearing in mind that due to the lower technical standard in developing countries GHG reduction potentials are higher than in developed countries reductions can be achieved more cost efficient in developing countries than in industrialised countries. This makes developing countries to attractive partners for CDM or JI project activities. Consequently companies decide to invest. This supports the modernisation of the economy in developing countries.
Carbon, Energy and Clean Tech Market actors meet at CARBON EXPO 2012 in Cologne
With questions surrounding carbon markets and climate finance needing answers, there is the perfect opportunity to participate in the 9th edition of CARBON EXPO, the World’s leading Global Trade Fair and Conference for Carbon, Energy and Clean Tech Markets taking place in Cologne, May 30-June 1, 2012.
At a time when the carbon market is in transition - EU emissions prices are sharply lower, a federal US cap and trade program is distant, and a fully global climate treaty with legal force is not slated to come into force until 2020 - the over many years established CARBON EXPO provides an unique forum for world leaders, experienced carbon market participants and new players to come together to share expertise and develop business opportunities related to greenhouse gas emission reductions. The conference will feature over 40 side events and interactive discussions, including industry case studies and perfect networking opportunities.