CARBON EXPO reinforces its leadership role in the carbon market
3000 visitors – an increase of more than 20 percent – attended the carbon market’s leading global fair and conference in Cologne, Germany.
258 exhibitors from more than 60 countries and 3000 visitors from more than 115 countries accepted the invitation of the organisers Koelnmesse, the World Bank and the International Emissions Trading Association (IETA), to share experiences and gain knowledge of current topics and trends, technologies, projects and services at this years CARBON EXPO. The EXPO recorded a more than 16 percent increase in exhibitors and a 20 percent increase in the number of visitors (2007: 222 exhibitors, 2.419 visitors).
New World Bank figures show that the international emissions market continues its rapid growth. Announced at CARBON EXPO the global market doubled in 2007 and now totals US $ 64 billion (€47 billion). EU-emission rights trading amounts to US $ 50 billion (€37 billion).
Closing Event at the CARBON EXPO: The Emissions Trade after 2012
The closing event of the CARBON EXPO 2008 was to give an outlook on the role of the CO²-market after the expiration of the Kyoto Protocol. Representatives of the World Bank, of IETA, UNFCCC, MASDAR, and UK DEFRA advocated the continuation of the emissions trade after the year 2012. However, what its specific form will be is still absolutely unclear. The speakers agreed that CDM projects should be carried on in a modified form, especially by means of a qualitative upgrading of the individual projects.
Likewise the investment climate is to be improved in the medium term and the decision-making processes shortened. The changed conditions in the discussion about the emissions trade are understood as progress: “The discussion is no longer – as it was three or four years ago – about the market itself but about development”, said James Warren Evans of the World Bank. In the future the focus will have to be on sustainable projects and technology transfers because the aim is a reduction of greenhouse gasses that is perceptible and relevant for the climate.
Interview: Dr. Ing. Sven Kolmetz (TÜV SÜD)
Dr. Ing. Sven Kolmetz, Department Head of Carbon Management Service, speaks about the fields of activity of TÜV SÜD on the CO²-markets.
Mr. Kolmetz, what are the fields of activity of TÜF SÜD on the CO²-markets?
K: Validation and verification are the main fields of activity. Additional ranges of topics are the European emissions trade and the certification of green electricity, which also belong to our products in the division in which we are represented here. But the main focus is on climate protection projects.
How does the certification of projects proceed? Do you supervise projects on a long-term basis?
There are two project levels. On the one hand, there is the validation, during which we verify on site whether a project is suitable for climate protection. This means whether we can actually have it approved and then registered at the UNO. The verification is the second step, which includes that the actual reduction of greenhouse gasses is tested, and this verification can last over several but no longer than seven years for one project. It must, however, be ascertained that the validation and verification has been conducted according to the UNO regulations by several auditing organisations.
What is the so-called “Gold Standard” for CDM/JI-projects?
The Gold Standard has existed for quite some time and is being updated at the moment. Part of this are better certificates, which have to fulfil additional criteria concerning sustainability, environmental compatibility etc.
A medium-term projection: Will projects develop in a different way after 2012 than they do today?
We expect that everything will go on as it has been up to now. The project types are clearly defined: In order to reduce greenhouse gasses, I either have to change to alternative energy sources, or I have to produce energy in a more efficient way. Therefore, the project types are already specified. And as the EU has agreed to continue with the European emissions trade after 2012, these climate protection projects will remain as well. I am quite optimistic, that there will be a post-Kyoto Agreement in 2012 and that the U.S. will be part of it.
Host Countries at the CARBON EXPO: Peru
An area of 1.28 million square kilometres, 3.079 kilometre costline and an annual GDP growth rate of 8.9 per cent. Name: Peru. The South American state offers due to its natural and social resources attractive possibilities for investments and projects in the carbon market sector. In addition to this Peru is counted among the low-risk countries for foreign investors because of stable framework conditions. Projects are mainly designed for the mining and energy industry. Here especially the construction of hydroelectric power plants plays a role.
Like many other countries, Peru makes use of the CARBON EXPO as a platform to present national projects and to establish business contacts. It is represented by the national environment fund FONAM and ProInversión.
Interview: Current and Future Projects in the Far East (English)
Sirithan P. Boriboon, Executive Director Thailand GHG-Management Organization, speaks about Thailand’s presence on the CO2 market, current project developments and the CARBON EXPO.
Technology Providers Too Are Represented At The CARBON EXPO
If one wants to achieve long-term reduction of CO² emission, emission-reducing technology is just as important as trade and project development. Leading companies in the branch of mechanical engineering and construction represent their developments at the CARBON EXPO. These developments contribute in the long run to the reduction of environmentally hazardous emissions and therewith to the generation of CO² certificates.
Pro 2, for example, develops and constructs turn-key plants for the use of biogas, sewage gas, natural gas, landfill gas, and firedamp. These energy sources lead to a reduction of costs and of energy because the point of intersection between gas conditioning and gas utilization is eliminated. Flare systems by Haase have an important share in emission protection and emissions trade as well. They are an ecologically friendly and cost-efficient solution to the problem of how to dispose of harmful gas and exhaust emission streams, play an important role in the fulfilment of the Kyoto Protocol and are of great interest to the emissions trade in CO² certificates.
Flare systems are on the basis of their sustainable reduction of environmentally hazardous emissions exceedingly suited for the generation of CO² certificates. In particular high temperature flares (type HT) are relevant for the emissions trade as they show the highest degree of emission reduction. A practical technique to measure the exhaust gas is planned for the HT-flares in order to attest a permanent degree of emission reduction of at least 99,9 per cent. This is necessary to tap the full potential of CO² certificates.
Five European Public Finance Institutions start Post 2012 Carbon Credit Fund
The EUR 125 million Post 2012 Carbon Credit Fund established by five leading European public financing institutions: the European Investment Bank - EIB (initiator and principal investor with EUR 50 million), Caissedes Dépóts (EUR 25 million), Instituto de Crédito Oficial - ICO (EUR 10 million), KfW Bankengruppe (EUR 25 million), and the Nordic Investment Bank - NIB (EUR 15 million), is beginning ist activities following the appointment of a consortium of Conning Asset Management (Eurpoe) Limited and First Climate as fund manager.
Panel Discussion: Elements of a U.S. GHG Policy
What is happening in the U.S. with respect to greenhouse gas reduction? This question, which is important for the international market as well, was discussed this morning by Kenneth Connolly (former Chief of Staff, U.S. Senate Environment Committee) Allison Wood (Partner, Hunton & Williams), John Shanahan (Senior Vice-President, Hawthorn Group), Joel Bluestein (Senior Vice President, ICF International) and Jack Cogen (President, Natsource). “It is not realistic, I believe, to expect the U.S. government to sign a climate agreement within the next five years”, said Ken Connolly. On the other hand, the U.S. will attempt to play a decisive part in the emission reduction at the climate conference in Copenhagen in 2009.
Connolly emphasised the difficult political processes that often hinder the success of a climate protection bill. With the beginning of a new presidency the national emission policy will change too. A national solution for all federal states is especially important for the industry. Even though many U.S. companies judge emissions trade to be a useful economic tool, we still have a long way to go to establish a working trading scheme like the EU ETS.
Keep a low profile?
Not at the CARBON EXPO. Discussions about the medium-term future of CDM, debates against the backdrop of the challenges posed to the emissions trade on the North American or the Asian market, and numerous business meetings with potential contractual partners leave no space for reserve. When, however, exhibitors, visitors and representatives of politics and economy meet in the exhibition halls at the end of a successful day at the fair, they have the possibility to play soccer. Here, for example, at the exhibition stand of First Climate AG and to the left, by the way, Linklaters is playing Frisbee.
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