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Welcome to the inaugural newsletter from Global Carbon Exchange. We
have taken eventfull month of May, with strong evidence of climate change
affecting the world, new record levels of CO2 evidenced, the biofuels
debate heating up, global carbon market reports being issued and new
climate policy efforts being undertaken from Washington to Beijing, as
a good reason to launch this information service for you.
Featured in this newsletter:
- Carbon Markets
o Carbon Price Expected To Hit €38-40
o Carbon market could be worth 2 trillion Euros in 2020: study
o Kyoto carbon trade hits 1 million tonnes a day
o Global carbon market boomed in 2007 -World Bank
o State of the Voluntary Carbon Markets report released
- Australian News
o Australian energy company and bank set benchmark for carbon trading
o Climate plan could change sky colour
o Attitudes towards global warming
o Changes in Australian attitudes towards global warming
o Farmers 'in denial' about climate change
o Garnaut Report on costs & benefits of mitigation efforts
- South African News
o St Helena Community to benefit from 80MW windfarm
o Expect 'green tax' hike – SA govt
- Asia-Pacific News
- Indonesia
o Indonesia plans drastic emissions cuts by 2025
- Deforestation
o $4.5 million to assist global efforts on deforestation
o Papua signs REDD carbon deal to generate income from rainforest protection
o Palm oil firms pledge to stop clearing rainforests in Indonesia
- Kyoto and Climate policy
o G8 environment ministers call for 2050 emissions goal
o World can reach climate change deal in 2009 – UN
o UNFCCC: new Methodologies submitted to UNFCCC CDM Executive Boardd
o US Federal Action on Emissions Trading is Speeding Up:
o Senate set to take up climate change debate
o US Senate faces investor pressure on global warming
o Russia may hold on to emission rights
- Climate Science
o Greenhouse gases highest for 800,000 years - study
o World carbon dioxide levels at record high, scientists warn
o Methane rise points to wetlands
o Arctic Ice Is Melting At Alarming Pace
o Climate change warms Arctic, cools Antarctica
o Vast cracks appear in Arctic ice
o Japan scientists warn Arctic ice melting fast
o World may be heating quickly
o Wildlife and environment already hit by climate change
o Airline emissions 'far higher than previous estimates'
o A pause in global warming?
- Biofuels
o Australian Ethanol push 'to lift food prices'
o Global biofuel output to soar in next decade – report
o EU parliament calls for more research into impact of biofuels
- Climate Economics
o Market-based instruments to mitigate emissions at lowest possible cost
o UN Experts Warn Of Economic Cost Of Species Loss
o New Zealand Kyoto cost revised down to $481 million
o China faces trade war climate challenge
o Australia: Garnaut warns of global warming woes
o Broad climate fight best, not just gas cuts
- Conferences
o Cost of Inaction- LegaWise, Sydney
o Emission Trading and Carbon Markets Forum, Johannesburg
o Food Security Conference, Johannesburg
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Carbon Markets
Carbon Price Expected To Hit €38
27 May,
Business Green: That is the prediction of an analyst firm, which last
week upgraded its expectations for the price of EUA (EU Emission
Allowance) carbon credits traded through the European Union's emissions
trading scheme (ETS), claiming prices could reach €38 per tonne between
now and 2012.
In the meantime,
Deutsche Bank raises the forecast to 40 Euros for Dec08 EUAs
May 30 (Reuters) - Deutsche raised its European Union 2008 carbon price
forecast to 40 euros ($62.37) on Friday, from 35 euros previously and
well above the current price of about 26 euros
Carbon market could be worth 2 trillion euros in 2020: study
22 May, AFP: The global market in CO2 emission rights could be worth
two trillion Euros by 2020 if the United States joins the scheme, a
carbon analysis group said.
Kyoto carbon trade hits 1 million tonnes a day
Future trades in CER reach 1m after one month
15 May, Reuters :
The European Climate Exchange (ECX) said its futures trade in carbon
emissions credits from developing countries based on a U.N.-scheme has
hit a million tonnes a day after launching the contracts in March.
Global carbon market boomed in 2007 -World Bank
May 7 (Reuters) - The global carbon market more than doubled in value
in 2007 to $64 billion, but that masked slow growth in actual
greenhouse gas emissions cuts, the World Bank's carbon finance unit
said at the CarbonExpo conference in Germany.
State of the Voluntary Carbon Markets report released
May, Ecosystem Marketplace: A new edition of the report Making sense of
the voluntary carbon market: A comparison of carbon offset standards
covers the global voluntary carbon market in 2007
Australia
Australian energy company and bank set benchmark for carbon trading
20 May (ABC news): Australia's emissions trading market will not be in
place for another two years, but that has not stopped two of the
country's largest companies from doing a deal which has set a price for
carbon in Australia for the first time. However, the scale should not
be interpreted as defining the expected future price.
According to Bloomberg news, a second trade in Australian carbon
credits was announced at A$20 (US$19.13). A environmental derivatives
manager said it had brokered a second clip of 10,000 Australian
emissions trading units (AETUs) for February 2012 delivery at AUD20.
The counterparties were not disclosed. The first transaction occurred
earlier in May between energy firm AGL and bank Westpac, for 10,000
AETUs at AUD19 per unit.
There is plenty of speculation where the price equilibrium of the
future Emissions TRrading Scheme will be. The market is talking about
prices in the $25-30 range, according to traders. However, those
initial deals would set the market price around halfway between the two
offset credit types that are expected to be allowed to supply the
domestic carbon market- NGACs and CERs.
GCX Carbon Market WorkShop
GCX is now offering its “carbon market basics” workshop in Australia.
If you are looking for essential information about what the upcoming
Australian emissions trading scheme means for your company, but don’t
have the time to visit conferences and need insights tailored to your
needs, then talk to GlobalCarbonExchange.
Please contact Marc Pop on     02 82112789
Climate plan could change sky colour
19 May (ABC News online ): Scientist Tim Flannery, who has written
extensively on environmental issues, suggested a plan to pump sulphur
into the atmosphere in order to repel the sun's rays. He says the
process is called "solar dimming", which would change the colour of the
sky.
Attitudes towards global warming
8 May (news.com.au ):
Australians see climate change as the nation's biggest problem but
appear unwilling to change their lives to reduce their large
environmental footprint, an international survey has found. Australia
is tied in seventh place among 14 major developed and developing
nations in the National Geographic's Greendex, a measure of sustainable
consumption and behaviour.
Changes in Australian attitudes towards global warming
1 May
(WMO MeteoWorld): It has been observed that global warming appears to
have been mentioned much more frequently in the media and by
politicians over the past couple of years than previously. Is this
really the case? If there has been an increase in media and political
attention given to climate change, has there also been a corresponding
increase in the frequency that people seek out more climate change
information, in the use of renewable energy or carbon offsetting
options? This note addresses all these issues, and establishes that
changes have occurred and that they are remarkably large.
Farmers 'in denial' about climate change
20 May (The Age): Nearly 40 per cent of rural people are uncertain
about whether climate change is happening and are pinning their hopes
on the weather returning to normal after the drought. Most people who
live on the land question the link between the 11-year drought and
climate change, a study by the government's Bureau of Rural Sciences
found.
Garnaut Report on costs & benefits of mitigation efforts
The Garnaut Climate Change Review Draft Report has received about 4000
submissions, but will not be launched before 4 July 2008. It is
expected that Professor Garnaut will give an outlook when he will speak
to the ANU College of Asia and the Pacific on Thursday 5 June 2008.
Related article: 5 May - Sydney Morning Herald: - read below
South Africa:
With the current electricity crisis hitting South Africa, the Clean
Development Mechanism (CDM) is seen as one of the factors that could
help attracting investment into new energy infrastructure. GCX is well
positioned in the market to advise organizations on carbon finance
under the CDM and implementation of projects to register under the
UNFCCC.
At the same time, energy efficiency and carbon footprint assessment are
key to any organization’s path towards sustainability and long-term
profits. GCX is now promoting its Energy+CO2 Assessment
Carbon Offsetting Service: Providing a robust and detailed assessment of your energy and carbon impact.
Contact the team in South Africa to learn more!
+27 (0) 21 680 5146
St Helena Community to benefit from 80MW windfarm
30 May 2008, IOL (Western Cape)
: A wind farm costing about R825-million and expected to produce 80MW
of electricity, will be erected on a piece of community-owned land at
St Helena Bay. "The St Helena community will benefit directly from
this," Environment Affairs and Economic Development MEC Tasneem Essop
said on Thursday.
Expect 'green tax' hike – SA govt
May 20 2008 (Fin24.com) Cape Town
- Marthinus van Schalkwyk, Minister for Environmental Affairs and
Tourism, revealed on Tuesday his long term mitigation scenario for
dealing with climate change. He told members of parliament in an
extended committee, where he was presenting his budget for the current
year that partial solutions to the climate challenge are pointless.
Indonesia and Asia Pacific:
Indonesia plans drastic emissions cuts by 2025
24 May (The Independent): Indonesia has outlined a plan to slash
greenhouse gas emissions by 17 per cent by 2025, a potentially bold
move which could shame wealthier nations into announcing tougher
targets of their own. The country, with a population of 235 million
people, has one of the largest carbon footprints outside of the
developed world.
A different hedge against a future carbon price is the possibility
to contract CERs from CDM projects. GCX is now offering you CERs from
our Indonesian CDM projects in the Australian market!
Contact us in Sydney
Tel: +61-2-8211 2789
Deforestation:
$4.5 million to assist global efforts on deforestation
26 May (Media release- Dept Environment, Water, Heritage and the Arts) :
The Australian Government will invest $4.5 million in helping
developing countries reduce deforestation as part of international
efforts to tackle climate change. Minister for Climate Change and
Water, Senator Penny Wong, and Minister for Foreign Affairs, Stephen
Smith, said the funds come from the Rudd Government’s International
Forest Carbon Initiative.
Papua signs REDD carbon deal to generate income from rainforest protection
14 May (Mongabay): The government of the Indonesian province of Papua
has entered into an agreement with an Australian financial firm to
establish a forestry-based carbon finance project on the island of New
Guinea. The project — which could involve more than one million
hectares — aims to create "a perpetual financial base for local
communities" through carbon credits generated by forest conservation.
Palm oil firms pledge to stop clearing rainforests in Indonesia
13 May - The Jakarta Post: Palm oil companies operating in Indonesia
pledged to stop expanding plantations into forests in response to
growing global criticism about deforestation and to promote more
sustainable products.
Kyoto Protocol and Climate policy
G8 environment ministers call for 2050 emissions goal
26 May (ABC News online): Environment ministers from the G8 rich
nations have taken a small but vital step in the fight against climate
change, urging their leaders to set a global target to halve greenhouse
gas emissions by 2050. G8 environment ministers and representatives
were joined for talks by major emerging economies such as China in
western Japan to try to build momentum for talks on climate change, a
key agenda for a July leaders summit in the northern Japanese resort of
Toyako. Emerging and developing countries want the G8 to take the lead
by setting numerical targets for emissions cuts by 2020, a stance also
backed by the European Union
World can reach climate change deal in 2009 – UN
4 May (Reuters): The world can reach a significant new climate change
pact by the end of 2009 if current talks keep up their momentum, the
head of the United Nations climate panel said.From 2-13 June, several
meetings are taking place in Bonn, Germany, as part of an ongoing
series of negotiations under the UN Framework Convention on Climate
Change (UNFCCC) and Kyoto Protocol. These negotiations are focused in
particular on finalizing a multilateral agreement on climate change for
after 2012, when the Kyoto Protocol's first "commitment period" expires
UNFCCC: A range of new Methodologies have been submitted to the UNFCCC CDM Executive Board
Read more here
US Federal Action on Emissions Trading is Speeding Up:
Senate set to take up climate change debate
27
May (Reuters): The international fight to control climate change heads
to a new arena in June when the U.S. Senate is to debate a bill that
could cut total U.S. global warming emissions by 66 percent by 2050.
US Senate faces investor pressure on global warming
21 May (Financial News): A multi-trillion dollar coalition of
investors, with a combined $2.3 trillion under management, is
pressuring the US Senate to set binding targets for the reduction of
the country's carbon dioxide emissions, calling for a national climate
policy to reduce US greenhouse gas emissions by at least 60 to 90
percent below 1990 levels by 2050.
Russia may hold on to emission rights
12 May (Planet Ark): Russia may decide to hold onto its greenhouse gas
emissions rights under the Kyoto Protocol, at least until the details
of a successor treaty are clearer, a Russian expert said. According to
available data, Russia may have more than 800 million tonnes of carbon
dioxide right- this is more than the estimated demand of every other
Kyoto signatory country combined.
Climate Science
Greenhouse gases highest for 800,000 years - study
15 May (Planet Ark): Greenhouse gases are at higher levels in the
atmosphere than at any time in at least 800,000 years, according to a
study of Antarctic ice that extends evidence that mankind is disrupting
the climate.
World carbon dioxide levels at record high, scientists warn
12 May (Guardian): The concentration of carbon dioxide in the
atmosphere has reached a record high, according to new figures that
renew fears that climate change could begin to slide out of control.
Scientists at the Mauna Loa observatory in Hawaii say that carbon
dioxide levels in the atmosphere now stand at 387 parts per million
(ppm), up almost 40% since the industrial revolution and the highest
for at least the last 650,000 years.
Methane rise points to wetlands
23 May (BBC News online):
Higher atmospheric levels of the greenhouse gas methane noted last year
are probably related to emissions from wetlands, especially around the
Arctic. Scientists have found indications that extra amounts of the gas
in the Arctic region are of biological origin. Global levels of methane
had been roughly stable for almost a decade. Rising levels in the
Arctic could mean that some of the methane stored away in permafrost is
being released, which would have major climatic implications.
Arctic Ice Is Melting At Alarming Pace
Climate change warms Arctic, cools Antarctica
2 May (Reuters): The Arctic and Antarctica are poles apart when it
comes to the effects of human-fueled climate change, scientists have
said: in the north, it is melting sea ice, but in the south, it powers
winds that chill things down.
Vast cracks appear in Arctic ice
23 May (BBC News online): Dramatic evidence of the break-up of the
Arctic ice-cap has emerged from scientists travelling with Canadian
troops: they found major new fractures during an assessment of the
state of giant ice shelves in Canada's far north and a network of
cracks that stretched for more than 10 miles (16km) on Ward Hunt, the
area's largest shelf. The fate of the vast ice blocks is seen as a key
indicator of climate change.
Japan scientists warn Arctic ice melting fastJ
12 May (Reuters ): Arctic ice is melting fast and the area covered by
ice sheets in ocean could shrink this summer to the smallest since 1978
when satellite observation first started, Japanese scientists warned in
a report.
World may be heating quickly
7 May (Sydney Morning Herald ) :
Climate change is happening faster than predicted and the world could
be as much as seven degrees hotter by the end of the century, a CSIRO
scientist says. New Australian research showed current policies did not
go far enough to manage the risks posed by climate change, according to
Dr Roger Jones, a climate risk analyst with CSIRO's energy transformed
flagship.
Wildlife and environment already hit by climate change
15 May
(Sydney Morning Herald): Global warming is disrupting wildlife and the
environment on every continent, according to an unprecedented study
that reveals the extent to which climate change is already affecting
the world's ecosystems. Scientists examined published reports dating
back to 1970 and found that at least 90% of environmental damage and
disruption around the world could be explained by rising temperatures
driven by human activity.
Airline emissions 'far higher than previous estimates'
6 May (The Independent) : The aviation industry's failure to curb its
soaring carbon emissions could lead to the "worst case scenario" for
climate change, as envisaged by the United Nations. An unpublished
study by the world's leading experts has revealed that airlines are
pumping 20 per cent more carbon dioxide into the atmosphere than
estimates suggest, with total emissions set to reach between 1.2
billion and 1.5 billion tonnes annually by 2025.
A pause in global warming?
5 May (Gather): Global warming is in the middle of a ten-year pause
according to an article in Nature. The article does not say that global
warming is stopping, just that there is a pause due to alterations in
ocean circulation patterns. This may be because of natural causes,
because global warming has altered ocean circulation, or a combination.
Biofuels
Australian Ethanol push 'to lift food prices'
31 May -The Australian : Farming industry leaders and analysts say the
push by governments to ensure 10 per cent of petrol is made up of
biofuels such as ethanol will leave the nation critically short of
grain and drive food prices higher.
Global biofuel output to soar in next decade – report
30 May - Reuters/ Planet Ark: Global production of biofuels will rise
rapidly over the next decade, helped by high government blending
targets and subsidies, the OECD and the UN's FAO food agency said in a
report. These rises will boost already soaring world agricultural
commodities prices and reduce their availability for food and feed, the
Organisation for Economic Co-operation and Development and the Food and
Agriculture Organisation said in co-drafted report.
Food prices to stay high, "grain drain" fuel blamed
Reuters, 29 May 2008
- Food prices will remain high over the next decade even if they fall
from current records, meaning millions more risk further hardship or
hunger, the OECD and the UN's FAO food agency said in a report
EU parliament calls for more research into impact of biofuels
21 May - AFP: The European Parliament on Wednesday called for more
research into the impact of developing biofuels to combat climate
change, a strategy which has been criticised amid a world food crisis.
The EU parliament "advocates additional research into the impact of the
policy of promoting biofuels and their effects on the increase of
deforestation, the expansion of cultivated land and world food
supplies".
Climate Economics:
Market-based instruments to mitigate emissions at lowest possible cost
7
May- Belfer Center: The Harvard Project of International Climate
Agreements at the Harvard Kennedy School has published a research paper
examining the potential use of market-based instruments: In principle,
internationally-employed market-based instruments can achieve overall
cost effectiveness. Three basic routes stand out. First, countries
could agree to apply the same tax on carbon (harmonized domestic taxes)
or adopt a uniform international tax. Second, the international policy
community could establish a system of international tradable permits, —
effectively a nation-state level cap-and-trade program. In its simplest
form, this represents the Kyoto Protocol’s Annex B emission targets and
the Article 17 trading mechanism. Third, a more decentralized system of
internationally-linked domestic cap-and-trade programs could also
ensure internationally cost-effective emission mitigation.
UN Experts Warn Of Economic Cost Of Species Loss
30 May Reuters / Planet Ark: Mankind is causing 50 billion euros ($78
billion) of damage to the planet's land areas every year, making it
imperative governments act to save plants and animals, a Deutsche Bank
official told a UN conference. A study, presented to delegates from 191
countries in the UN's Convention on Biological Diversity, said recent
pressure on commodity and food prices highlighted the effects of the
loss of biodiversity to society.
New Zealand Kyoto cost revised down to $481 million
6 May - National Business Review: The New Zealand government says it
will soften the blow from the proposed climate change emission trading
scheme because a $1 billion projected carbon deficit has been halved.
Prime Minister Helen Clark brought forward the release of data that
estimated the carbon deficit had fallen 45.5 million tonnes to a 21.7
million tonnes. This halves the financial liability from $1 billion to
$481 million.
China faces trade war climate challenge
6 May - Asia Times: China has recently surpassed the United States as
the world's largest source of greenhouse gases, and it became
developing nations' diplomatic champion at the recent United Nations
climate negotiations in Bali. Now China may become the target of a
full-fledged trade war that could destroy, or perhaps rescue, the
chances of bringing rich and poor nations together to fight global
warming.
Australia: Garnaut warns of global warming woes
5 May - Sydney Morning Herald: Global warming could have the same
economic effect as the Great Depression if handled poorly, Australian
government climate change adviser Ross Garnaut says.
Broad climate fight best, not just gas cuts
8 May - Reuters: An assault on climate change on many fronts makes good
economic sense but will be money badly spent if the world focuses
exclusively on cutting greenhouse gas emissions, a study said. A
100-year package costing $800 billion to help people adapt to the
impacts of warming -- such as droughts or rising seas -- while also
funding research into new technology and curbing emissions could yield
benefits of $2.1 trillion.
Conferences:
-
GCX Director Marc Pop to talk at the legalwise seminar:
“CARBON TRADING, CLEAN ENERGY & THE COST OF INACTION” on the 26-27th of June in Sydney
http://www.legalwiseseminars.com.au/Climate%20Carbon%20Brochure.pdf
27th June, 11:45am Case Studies: What we can learn from the European Experience?
• The Second Phase of the European Union (EU) cap and trade scheme
• ITL compatibility
• Global carbon trading opportunities and threats
- GCX CEO Kevin James at the Emission Trading and Carbon Markets Forum
25, 26 & 27 June 2008, Garden Court, OR Tambo International Airport, JHB
Interactive Panel and roundtable discussion:
Investing in the growth of Voluntary Emission Reduction’s (VERs) and the regulated markets
• What are and how big are the voluntary markets?
• What are the risks involved in investing in these markets
• How does voluntary pricing work for Certified Emission Reduction (CER)?
• The market use of voluntary carbon standards: How do these standards support the growing market?
• Assessing the quality in the voluntary markets
• How will growth of VER’s affect the regulated markets?
- GCX CEO Kevin James at the Food Security Conference
29 & 30 July 2008 at the Indaba Hotel in Fourways, Johannesburg,
45 minute presentation:
The threat posed by climate change and biofuels on food security
• Direct link between climate change and food security
• The raging debate around biofuels and food security
• How the two impact on each other
• Possible solutions
Speaker - Kevin James, MD, Global Carbon Exchange GCX
GCX is recommending ecocho for web searches with integrated offsetting: www.ecocho.com
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