Carbon Credit Business The Global Direction: Marketplace and Potential Facilitator: Dr. Paul Abolo.
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Transcript of Carbon Credit Business The Global Direction: Marketplace and Potential Facilitator: Dr. Paul Abolo.
Carbon Credit BusinessThe Global Direction: Marketplace and Potential
Marketplace
Global Direction
Potential
Carbon Credit BusinessThe Concept of Carbon Trading Based on recognition that developed countries are
principally responsible for high levels of carbon emission.Due to 150 years of industry activities
Heavier burden on developed nations through
Annex 1 Parties (mostly developed countries) have emissions limitations
Non-Annex 1 Parties (developing countries) have no emissions limitation
The Global Marketplace
Compliance Market (CM) – Annex 1 Parties
Voluntary Market (VM) – Non-Annex 1 Parties
Global Carbon Marketplace II
The Compliance Market Mandatory limitations to how much GHG they can
emit. Any excess would need to be bought from somewhere.
Any surplus can be sold to those who exceed the quota.
The Voluntary Market No mandatory limitations on how much GHG they can
emit They create programs and methods to reduce their emission
from what it used to be and sell it to the those in the CM who are unable to keep to their mandatory limitations
Voluntary MarketplaceHow do we create the commodity? Clean Development Mechanism (CDM)
The platform provided by the policy (KP) and United Nations Framework Convention on Climate Change (UNFCCC), in countries like Nigeria; to participate in this trade at a global level.
Avenue for generating carbon credits through Renewable Energy advocacy, promotion, education and
solutions
Adaptation of sustainable development practices such as solar technologies, energy efficient lighting, biofuels for transport, cooking, BRT, etc.
Global Direction
Global Direction &Trend I Shift in investor-focus
Citigroup’s $50 billion green initiative and a commitment of $10 billion to reducing their own carbon footprints in its 14,500 offices worldwide
Investment of $31 billion over the next 10 years in “wind farms, biofuels, solar panels and other eco-friendly technologies by Citigroup
Introduction of the worldwide Dow Jones Sustainability Group Index (DJSGI).
Joint capitalization of 4.4 trillion US dollars. The lists of financial institutions that are licensed by DJSGI include Vereinsbank, Gerling, Nikki, ING, Rabobank, Westpac and Union Investment.
Global Direction &Trend II
Google invested over US$1billion in wind and solar energy to gain attractive financial returns; generating over 2GW of electricity each year.
Recently invested US$94 million in large-scale solar photovoltaic projects in California.
DuPont saved $3billion by drastically reducing greenhouse emission and associated energy use.
Global Direction &Trend III
GE saved $12.8 million by upgrading lighting in their plants from the regular lighting devices to the high efficiency lights in their plants.
Ford Motor Company reduced their carbon emission by 15% by eliminating energy-intensive drying equipment.Saved another 20% in drying time
Potentials
Pioneer statusBelong to elitist group of
EnvironmentalistsEngage before Nigeria becomes a
Compliance MarketEngage the future now – ahead of the
curve
Business OpportunityLow-entry barrier now
Potentials II
Creating a just worldTo contribute to humanity / make
impact The essence of your professional life? Save lives – clean environment
Reduce Lung CancerReduce Hearing ImpairmentReduce Accidental Deaths, etc.Reduce Joblessness
Potentials III
Global Environmental PoliciesAt the UN Climate Summit in September 2014,
there were pledges to raise over $200 billion by 2015 for climate change, through Green Bonds and shifting assets to clean energy.
Additionally allocate over $18 billion to developing countries between 2014 and 2020 for mitigation and adaptation
Creation of $30 trillion climate risk investment framework is in the pipeline.
The Future
The Future - NigeriaPotential to inject $1.25 billion into the Nigeria
economy from sales of carbon credit$18 billion in investments from implementation of
clean energy technologyN34.4 Billion / year from Deforestation AvoidanceChallenges turned to potentials:
Poor National Power Generation – Provide generationPrivate Power Generation - Provide AlternativePoorly managed waste – used to generate powerPoverty