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Essential strategies for effective emissions trading and offsetting

Essential strategies for effective emissions trading and offsetting

Contents

  • Introduction
  • Terminology
  • Glossary

Section 1: Introduction to the regulated markets and their implications for voluntary trading

  1. Chapter One - Introduction to the regulated markets and their implications for voluntary trading
    1. Introduction
    2. Introduction to the compliance markets
      1. What is the Kyoto protocol and how does it relate to trading emissions
      2. What are the Flexibility Mechanisms (CDM, JI and Emissions Trading)?
    3. Introduction to the CDM and JI
      1. What is the function of CDM and JI projects?
      2. The International Transaction Log - what is it and how does it work?
    4. The Clean Development Mechanism (CDM)
      1. What is the CDM and what are its aims and objectives?
      2. What makes a typical CDM project?
      3. Who's buying CDM credits?
      4. What are the risks associated with CDM projects?
    5. The Joint Implementation (JI)
      1. How does the JI work and what are its aims and objectives?
      2. What makes a typical JI project?
      3. Who's buying JI credits?
    6. Common perceptions of the CDM and the JI
      1. What do the companies using them think of the CDM and the JI?
    7. The EU Emissions Trading Scheme (EU ETS)
      1. What is the EU ETS?
      2. How does the EU ETS work?
      3. EU ETS expansion and development - what's happened so far and how will future plans affect industry?
      4. Potential impact on companies not currently covered by the EU ETS
      5. Linking the EU ETS to the Project based mechanisms
      6. What do the companies and Industry bodies affected think of the EU ETS?
    8. The UK Carbon Reduction Commitment (CRC)
      1. What is the CRC and what are its objectives?
      2. How will the CRC work?
      3. How do the companies that qualify for the CRC anticipate that it will affect them?
    9. The New Zealand Emissions Trading Scheme (NZ ETS)
      1. Background to the NZ ETS
      2. What is the NZ ETS and what are its objectives?
      3. How will the NZ ETS work?
      4. What is the anticipated impact of the NZ ETS?
    10. The Australia National Emissions Trading Scheme (AETS)
      1. Background to the AU ETS
      2. The New South Wales Greenhouse Gas Abatement Scheme
      3. What are the objectives of the AU ETS and what is it likely to look like?
    11. The emerging North American cap-and-trade schemes (AETS)
  2. Chapter Two: Things to consider before getting started on trading or offsetting emissions
    1. Introduction
    2. Typical reasons for buying or selling carbon credits?
      1. Companies looking to gain financially
      2. Buying credits to protect and enhance your reputation
      3. Buying credits to hedge risk
    3. Reducing your carbon footprint in a cost effective way
    4. What is the difference between the various carbon credits available?
      1. Introduction to allowances and credits
      2. Certified Emissions Reductions (CERs)
      3. Emission Reduction Units (ERUs)
      4. Verified Emissions Reductions (VERs)
      5. Removals Units (RMUs)
      6. Renewable Energy Certificates (RECs)
      7. European Union Allowances (EUAs)
    5. Where are emissions reductions or 'carbon credits' generated?
      1. What is source of the CDM and JI credits currently on the market?
      2. Where will future CDM and JI generated credits come from?
      3. Where will future voluntary emissions reductions come from?
    6. How to make sure that the credits you buy are additional
      1. How can you be sure that the credits you buy are additional?
      2. How to verify/communicate the additionality of credits you want to sell?
    7. Understanding vintages in the context of the carbon markets
      1. What is the 'vintage' of a carbon credit?
      2. How does the vintage affect the price of carbon credits?
    8. Controversy associated with some projects that generate carbon credits
      1. Burning methane
      2. Large-scale hydro
      3. Forestry projects or land based sinks
      4. Biofuels
      5. Carbon capture and storage
    9. Getting to grips with voluntary offset standards
      1. What are 'offset standards' and why is there a need for them?
      2. The Gold Standard
      3. The Climate, Community, and Biodiversity Standard
      4. Plan Vivo
      5. Voluntary Carbon Standard
      6. Voluntary Offset Standard
      7. VER +
      8. Standards developed by offset providers
    10. Things to consider when deciding which type of carbon credits to buy
  3. Chapter Three: Where to buy and sell carbon credits
    1. Introduction
    2. An overview of carbon exchanges
      1. What are carbon exchanges and how do they work?
      2. Introduction to the major carbon exchanges
      3. European Climate Exchange (ECX)
      4. The Nordic Power Exchange (Nord Pool, Soon to be OMX)
      5. Bluenext (Previously Powernext Carbon)
      6. European Energy Exchange (EEX)
      7. The Climex Alliance
      8. The Chicago Climate Exchange (CCX) and the Chicago Climate Futures Exchange (CCFE)
      9. NYMEX (Green Exchange)
      10. Smaller Carbon Exchanges
      11. Energy Exchanges outside Europe/USA
    3. Who trades emissions reductions on these exchanges
      1. What kind of companies can you trade with on the European exchanges
      2. What kind of companies can you trade with on the CCX
    4. How to make the most of trading on an exchange
      1. Does it pay off to trade on more than one exchange?
      2. Why do companies choose to buy and sell carbon credits through an exchange?
      3. How can you guarantee the quality of credits bought on exchanges?
    5. Buying offsets over-the-counter
      1. What is an Over-the-counter (OTC) transaction?
      2. What kind of companies buy carbon credits and allowances over-the-counter?
      3. What kind of companies buy carbon credits and allowances over-the-counter?
      4. What kind of carbon credits are traded OTC?
      5. What is the role of the broker in OTC transactions?
      6. Why do companies choose to trade carbon credits via OTC transactions?
      7. How to ensure transparency and the quality of credits when you buy OTC?
    6. Buying credits from non-regulated offset providers
      1. Introduction to the non-regulated voluntary offset market
      2. Things to look out for when buying credits from a non-regulated offset provider
      3. Things to look out for when buying credits from a non-regulated offset provider
      4. Who's currently buying offsets from non-regulated offset providers?
      5. What do you need to know about your supplier's offset certification process?
      6. How much do companies know about where their offsets are sourced?
  4. Chapter Four: Reporting emissions reductions transactions
    1. Introduction
    2. Reporting emissions reductions under the Kyoto Protocol
      1. Why is reporting necessary for companies involved in the compliance markets?
      2. What exactly are parties required to report to the UNFCC?
    3. Reporting emissions transactions voluntarily
      1. The recent growth in Corporate Responsibility reporting
      2. Reporting to the Carbon Disclosure Project
    4. How do the companies responding to the ECI questionnaire report their emissions transactions?
      1. Summary of the reporting activities of responding companies
      2. What do companies perceive as the benefits of reporting carbon trading and offsetting transactions?
      3. Best Practice in reporting emissions transactions

Section 2: Case studies - How companies are managing emissions trading and offsetting

  1. Introduction
  2. Aggregate Industries
  3. Alliance Boots
  4. The Co-operative Bank
  5. British Energy Group
  6. Deutsche Post
  7. EDF Energy
  8. Ford Motor Company
  9. HSBC
  10. Kuoni Travel Holding
  11. Land Securities
  12. Man Group
  13. Simmons & Simmons
  14. Unilever
  15. Westpac Banking Corporation
  • Summary and conclusions
  • References
    • Tables, figures and boxes
    • Table 1: Annex I and Annex II countries as defined by the UNFCCC
    • Table 2: CDM projects grouped by type
    • Table 3: Emissions caps of the EU nations
    • Table 4: Credits and their Features
    • Table 5: Summary of the major exchanges covered in chapter three
    • Table 6: Summary of transaction reporting practice of companies responding to ECI questionnaire
    • Table 7: Case Study Comparison
    • Figure 1: Structure of the international carbon market
    • Figure 2: CERs from registered projects by host
    • Figure 3: CDM project type by sector, April 2008
    • Figure 4: JI project locations, April 2008
    • Figure 5: JI project type by sector, April 2008
    • Figure 6: Example of credit strategy decision making
    • Box 1: An NGO's perspective on the CDM
    • Box 2: An NGO's perspective on the EU ETS
    • Box 3: An NGO's perspective on the CRC
    • Box 4: An NGO's perspective on additionality
    • Box 5: An NGO's perspective on controversial carbon credit sources
    • Box 6: An NGO's perspective on voluntary offset standards
    • Box 7: What are the transaction fees relating to hundreds of thousands of tonnes of CO2e
    • Box 8: An NGO perspective on reporting emissions transactions
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