The Carbon Market

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The Carbon Market Dakar 12 February 2008
Edwin Aalders Director International
Emissions Trading Association
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Global Market

• EU ETS
• Second year to be completed at the end of the
  month
• Effects of price drop in May 2006
• First phase around 1.5 Euro
• Second phase around 20 Euro
• Publication of Phase II NAPs
• EU ETS review
• EU Commitment to Climate Change

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Global Market

• CDM
• Initial pricing based on Phase I EU ETS now more
  on its own/Phase II of EU ETS
• Image Concerns in relation to HFC23 projects
• JI
• Effect of the enlargement of the EU ETS
• First project presented for approval by the JISC
  - possible approval on 26 March 2007.
• Accreditation of IEs

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Market value ( bn)

• Market value per year
• 10 bn 2005
• 22.5 bn 2006
• 15.8 bn H1 2007
• 95 bn est 2010
• Excludes additional project finance leveraged

2006 Est 2010
EU ETS 18.1 75
CDM/JI 4.1 15
Other ETS 0.3 5
Total 22.5 95
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(No Transcript)
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Global Market

• US state initiatives
• CCX Chicago Climate Exchange
• Reach US, Canada, Mexico, Brazil
• Voluntary Exchange
• RGGI Regional Greenhouse Gas Initiative
• Reach 7 Northeast and Mid-Atlantic states
• 10 reduction from 1990 level by 2017
• CCAR California Climate Action Registry
• Reach California, but encourages country-wide
  reporting
• Voluntary reporting initiative

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Top 3 preferred project types by buyers

• Renewable Energy
• Land Fill
• Industrial gases
• Renewable energy considered to be good
  investment and high public relation value
• Compliance Market
• Voluntary Market

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CDM Project performance

• General under performance by 7
• N2O 23
• HFC - 1
• Biogas -20
• Geothermal -67
• Hydro -10
• Landfill gas -63
• Wind -24
• Agriculture -55

UNEP Risø Centre 01-02-08
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For more information
International Emissions Trading
Association www.ieta.org Edwin
Aalders aalders_at_ieta.org
CARBON EXPO 7 9 May 2008
www.carbonexpo.com