Voluntary Cancellation of CERs: a private sector perspective

LACCF Bogotá 2014Isabela Aroeira | Offset Manager

CDM Board

Possibility to create new demand for CDM offset credits

Brazil

Possibility to compensate big international events through public calls:

Rio +20FIFA World Cup

DIFFERENT PERSPECTIVES ON CER’s VOLUNTARY CANCELLATION

Private Sector

The action is aligned to the company values and beliefs:

Brand name figuring among the “official CER’s Donors to offset GHG during the 2014 Soccer World Cup”

Usage of the “Selo Sustentabilidade Baixo Carbono”

COMPLIANCE X VOLUNTARY CANCELLATION

• Higher volumes of transacted credits;

• Prices determined according to credits supply and demand.

• Smaller quantities of credits are transacted; (Less than 0,5% of total CDM issuance)

• Prices determined according to “co-benefits” delivered by project activities;

• Process have to be fast, transparent and less bureaucratic.

VOLUNTARY CANCELLATION BY HOST PARTY (CERs/tCERs/lCERs)

2nd BRAZIL (17%)

1st

CHINA (36%) 3rd

ARGENTINA (12%)

2nd FUGITIVE EMISSIONS

(10%)

1st

AFFORESTATION AND

REFORESTATION(59%) 3rd HYDRO

(10%)

VOLUNTARY CANCELLATION BY PROJECT TYPE

(CERs/tCERs/lCERs)

CER’s VOLUNTARY CANCELLATION – NUMBERS2nd Q / 2014

HOW TO CANCEL CER’s?

PARTNERSHIP AGREEMENT(MMA AND COMPANY)

SEARCH FOR BRAZILIAN

CER’s

PRICE NEGOTIATIONSMALLER DEMAND,

HIGHER PRICES

CANCELLATION BY PROJECT

OWNERTEXT:

PURPOSE/BENEFICIARY OF CANCELATION…

AMIGO DO CLIMA - PROGRAM AND PREMISSES

• Selected high quality carbon credits;– Industrial gas offset projects and large hydro – questionable environmental

integrity– tCERs – how can a temporary offset deliver permanent benefits?

• Possibility to combine carbon projects (different standards, project activities…) to compensate one action;

• Traceable, transparent, auditable system.

www.amigodoclima.com

• Private sector demand faster and transparent operations;

• The co-benefits of the project add value for voluntary compensation (SD Tool);

• Voluntary cancellation initiatives are growing and have an important role on todays scenario, enhancing carbon transactions.

LESSONS

Obrigada!

Isabela Aroeira | Offset Manager

+55 (31) 8401-1766+55 (31) 3401-1074

iaroeira@waycarbon.com