Sustainable Energy News: 02/15/12

Wednesday, February 15, 2012

KPMG Sustainability Is Becoming A Core Business Strategy

KPMG's Veihmeyer Says Long-term Sustainable Growth Becoming a Core Business Strategy - PR Newswire - sacbee.com

NEW YORK, Feb. 14, 2012 -- /PRNewswire/ -- Corporate leaders are focusing increasingly on long-term sustainable opportunities to gain a competitive edge, in part by taking a critical look at their operations to manage supply chain and other risks, said John B. Veihmeyer, chairman of KPMG's Americas region and Chairman and CEO of KPMG LLP (U.S.), in remarks to more than 600 executives on opening day of KPMG's global "Business Perspective on Sustainable Growth: Preparing for Rio+20" summit.

A BASIC EXPLANATION OF CARBON CREDITS AND DYNAMIC HEDGING AND PORTFOLIO MANAGEMENT IN THE FUTURES AND FUTURES OPTIONS MARKETS

Robert Charles & Co., L.P. Carbon Free Webpage

20120215 RCCo. to File re CC Hedging

A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the mass of another greenhouse gas (such as methane) with a carbon dioxide equivalent carbon dioxide (tCO₂e) equivalent to one tonne of carbon dioxide.

Carbon credits and carbon markets are a component of local, national, and international governing bodies attempts to mitigate the growth in concentrations of green house gases (GHGs). Carbon trading is an application of an emissions trading approach. Greenhouse gas emissions are capped and then markets are used to allocate the emissions among the group of regulated sources. Since GHG mitigation projects generate credits, this approach can be used to finance carbon reduction schemes between trading partners and around the world.

There are also many companies that sell carbon credits to commercial and individual customers who are interested in lowering their carbon footprint on a voluntary basis. These carbon offsetters purchase the credits from an investment fund or a carbon development company that has aggregated the credits from individual projects. Buyers and sellers can also use an exchange platform to trade, such as the Green Exchange, Inter-Continental Exchange, or Carbon Trade Exchange, which is like a stock or futures exchange for carbon credits. The quality of the credits is based in part on the validation process and sophistication of the fund or development company that acted as the sponsor to the carbon project. This is reflected in their price; voluntary units typically have less value than the units sold through the rigorously validated governmentally mandated organizations such as the California Air Resources Board (CARB).

California Carbon Allowances (CCAs) are a type of emissions unit (or carbon credit) issued and verified under regulation promulgated by the California Air Resources Board. CCAs can be used by California businesses in order to comply with their emission limitation targets or by operators of installations covered by the CARB regulations. CCAs can be held by private entities in accordance with the registration rules of the CARB. CCAs can be purchased from the primary market (purchased from original party that makes the reduction) or secondary market (resold from a marketplace). It is only when the CCA is actually sitting in an operator's trading account that its value can be monetized through being traded.

A hedge is an investment position intended to offset potential losses that may be incurred by a companion investment. Public carbon credit futures markets were established several years ago to allow transparent, standardized, and efficient hedging of carbon credits.
The original party that makes the reduction of carbon in exchange for credits or other holders of carbon credits purchased in the marketplace are typically concerned about how the market values of carbon credits fluctuate constantly as supply and demand for them vary, with occasional large moves in either direction. Based on current prices and forecast levels, an originator or holder of credits might decide that holding or buying credits is a good idea at the time, but the forecast prices are only that — forecasts. Once an originator starts a project such as a multi-megawatt solar installation or biofuel plant or reforestation (or even the registration process for forestry and conservation credits), he or she is committed to it for anywhere from six months to 20 years. If the actual price of credits rises greatly between the projects initiation and the ultimate acquisition of credits, the originator stands to make a lot of money, but if the actual price drops by the time the credits are received, he or she could be upside down in a hurry!

This is where we come in. If at project origination the originator either purchases or sells a number of carbon credit futures and/or futures options contracts equivalent to the number of credits anticipated to be received, he or she effectively locks in the price of his credits at that time. In fact, the carbon credit futures and futures options markets can not only be used to lock in a price, but also to generate income while the originator waits for the issuance of or holds his or her credits. The originator or holder of credits has hedged his or her exposure to carbon credit prices; he or she no longer cares whether the current price rises or falls, because he or she is guaranteed a price in the futures market. He of she no longer needs to worry about being ruined by a low price when he or she finally gets his hands on the credits. Through the use of options he or she may also be able to retain the opportunity to make extra money from a high carbon price down the road and generate income along the way.

Carbon opportunities being explored by U.S. tribes

U.S. tribes to explore forest carbon opportunities

Tribes in Washington state will participate in a pilot project to test the feasibility of developing forest carbon projects on tribal lands, reports EcoAnalytics, a carbon advisory firm involved in the deal. The $2.45 million project aims to "develop protocols that overcome the legal and technical barriers faced by tribes in entering carbon credit trading markets," according to EcoAnalytics, which is partnering on the initiative with Finite Carbon Corporation; Van Ness Feldman, a law firm; and the Confederated Tribes of the Colville Reservation of Washington State, which include the Arrow Lakes (Lakes), Chelan, Colville, Entiat, Nespelem, Okanogan, Methow, Moses-Columbia, Nez Perce, Palus, San Poil, and Wenatchee (Wenatchi) tribes.

Solar Panels Powered Up At IKEA Store

IKEA Powers-up Solar Energy Panels at College Park, MD Store - Business Wire - SunHerald.com

COLLEGE PARK, Md. -- IKEA, the world’s leading home furnishings retailer, today officially plugged-in the solar energy system installed at its store in College Park, Maryland. The 148,200-square-foot PV array consists of a 1,196-kW system, built with 4,984 panels. IKEA College Park’s program will produce approximately 1,571,800 kWh of clean electricity annually, the equivalent of reducing 1,195 tons of carbon dioxide (CO₂), eliminating the emissions of 213 cars or powering 135 homes yearly (calculating clean energy equivalents at www.epa.gov/cleanenergy/energy-resources/calculator.html).

Read more here: http://www.sunherald.com/2012/02/15/3753871/ikea-powers-up-solar-energy-panels.html#storylink=cpy

CO2 Equivalencies Calculator

Greenhouse Gas Equivalencies Calculator | Clean Energy | US EPA

Did you ever wonder what reducing carbon dioxide (CO₂) emissions by 1 million metric tons means in everyday terms? The greenhouse gas equivalencies calculator can help you understand just that, translating abstract measurements into concrete terms you can understand, such as "equivalent to avoiding the carbon dioxide emissions of 183,000 cars annually." This calculator may be useful in communicating your greenhouse gas reduction strategy, reduction targets, or other initiatives aimed at reducing greenhouse gas emissions.

World Resources Institute - Power To The People - Investing In Clean Energy For The Base Of The Pyramid In India

power_to_the_people.pdf

The Base of the Pyramid (BoP) theory suggests that new business opportunities lie in designing and distributing goods and services for poor communities. The idea is espoused by influential US business school academics CK Prahalad and Stuart Hart, who argue that companies can help eradicate poverty by providing goods and services for the 4bn people who live on less than $2 a day - this group is known as the base of the pyramid. Few companies have so far addressed the opportunities in delivering goods to this group, whose purchasing power is $5,000bn a year according to the International Finance Corporation, the private sector arm of the World Bank.

Why does Big Steel oppose taking EU carbon credits of the market? Simple. Less supply=higher prices.

Steel industry slams emissions 'set-aside' - UPI.com

BRUSSELS, Feb. 15 (UPI) -- Europe's steel industry this week stepped up its opposition to a proposal that would take more than 1 billion EU carbon emissions tax credits off the market. The European Steel Association, or Eurofer, Monday joined a call joined a call from other business interests urging the European Commission to oppose a pending parliamentary bill to "set aside" 1.3 billion allowances under the European Union's emissions trading scheme.

Sustainability Outlook 2030

Sustainability Outlook 2030 a... JPost - Environment & Technology

A new environmental project that examines the country’s consumption trends for the past two decades and outlines potential outcomes and solutions for the next two is asking that the public actively participate in its work. The project, called Sustainability Outlook for Israel 2030 (Kayamut 2030), was the joint initiative of the Jerusalem Institute for Israel Studies’ Environmental Policy Center and the Environmental Protection Ministry in October 2010, and aims to ask critical questions about Israel’s future and devise methods for the country’s path toward sustainability, according to the Jerusalem think tank.

Al Gore: Carbon Not Unlike Subprime Debt; Laughing All The Way To The Bank

Gore Likens Carbon to Subprime Debt in Plan to Repair Capitalism - BusinessWeek

Feb. 16 (Bloomberg) -- Former U.S. Vice President Al Gore said investors in oil and gas companies who ignore the cost of emitting carbon dioxide and other greenhouse gases are making a mistake similar to those who invested in subprime mortgages.

No quick fix for GHG

Low-carbon technologies 'no quick-fix', say researchers

Furthermore, it states that technologies that offer only modest reductions in greenhouse gases, such as the use of natural gas and perhaps carbon capture and storage, cannot substantially reduce climate risk in the next 100 years. The study, published today, Thursday 16 February, in IOP Publishing's journal Environmental Research Letters, claims that the rapid deployment of low-greenhouse-gas-emitting technologies (LGEs) will initially increase emissions as they will require a large amount of energy to construct and install.

Ernest & Young says no global carbon plan soon

E&Y: Global Carbon Plan Unlikely Soon · Environmental Management & Energy News · Environmental Leader

Businesses should not hold their breath waiting for an international agreement on climate change, according to a report by Ernst & Young. After the failure of the Durban conference to commit the international community to a new deal on carbon emissions, the consultancy believes that it is unlikely that an treaty that forces companies to radically alter their carbon-related activities will materialize prior to 2015, according to Into the unknown: Climate change post Durban.

Grid energy storage is a growth market

KEMA Analysis Finds U.S. Grid Energy Storage Market to Reach 4 GW by 2016, Driving an Increase in Copper Demand - MarketWatch

BURLINGTON, MA, Feb 15, 2012 (MARKETWIRE via COMTEX) -- The projected increase in the U.S. market for grid energy storage devices could result in an increase in the demand for copper over the next five years. This is found from a market study by leading global energy consulting, testing and certification firm KEMA, conducted for the Copper Development Association (CDA), Inc.

Tax breaks for community energy projects; a better solution?

Government urged to boost tax breaks for community energy schemes - 15 Feb 2012 - News from BusinessGreen

Government departments should work more closely to promote community renewable energy schemes, including offering tax breaks to usher in "a truly transformative capitalism which places the market back into the hands of the people".

UK expertise in demand for Aussie cap and trade

UK carbon market expertise in demand ahead of Aussie trading scheme - 15 Feb 2012 - News from BusinessGreen

Australia is targeting UK companies' expertise to help launch its first carbon trading system and make the most of the significant commercial opportunities the scheme offers. The country's top 500 polluters will have to pay for their carbon emissions from the beginning of July this year after Prime Minister Julia Gillard finally won approval for the controversial scheme after five years of heated debate.

Colombian Carbon Offset Project Certified

SCS Validates Anthrotect's Colombian Carbon Offset Project to Climate, Community and Biodiversity Standards

Scientific Certification Systems (SCS) has validated Anthrotect's Chocó-Darién Corridor carbon offset project to the Climate, Community and Biodiversity (CCB) Project Design Standards. The project, located in northwestern Colombia near the Panama border, was awarded CCB Gold Level status for its exceptional social and environmental benefits. These include measures for adapting to climate change, empowering globally poorer communities, and conserving one of the world's most unique ecosystems.

Colombia's Choco forest project gets 'Gold' standardREDDs

'Gold' standard for REDD forest conservation project in Colombia's Choco

A pioneering project to reduce deforestation and forest degradation in a former conflict zone in Colombia has won gold certification under the Climate, Community, and Biodiversity (CCB) standard. The accreditation will help local communities access carbon finance in their efforts to safeguard biologically-rich forests.

The project is located in Colombia's Darien region, near the border with Panama. The area is part of the Chocó, the rainforest ecosystem that runs along the Pacific coast of Colombia and Ecuador but has been heavily impacted in places by logging, mining, and clearing for agriculture and cattle ranching. The Chocó ranks as one of the most biodiverse ecosystems on Earth.