The Voluntary CO2 Market

Orhideea Residence & Spa, the largest Aparthotel and Spa in Bucharest, signs landmark agreement with ALLCOT to measure its carbon footprint and offset its emissions

Press Release, Bucharest, 1 October 2015

Orhideea Residence & Spa, the largest aparthotel and spa in Bucharest has signed a two year agreement with ALLCOT to measure and offset its annual carbon emissions.

In 2014, it was responsible for generating 418 tCO2e (metric tonnes of carbon dioxide equivalent), mainly from heating and electricity consumption. Measuring its footprint and offsetting its unavoidable greenhouse gas (GHG) emissions is a part of its wider sustainability strategy, which has already involved the replacement of incandescent lightbulbs with low-energy LED units; improved waste sorting and reduced paper usage. Together, these actions make it one of Romania’s leading sustainable hotel and spa complexes, with 15kg tCO2e per night, which is less than half the Romanian national average of CO2 emissions for hotels.

“This CO2 emissions reduction target is a part of our policy to increase our guests’ comfort. Orhideea Residence & Spa is the largest aparthotel and spa in Bucharest. The smallest apartment is around 100 sqm and the largest more than 300 sqm. For responsible guests, the sheer size of these rooms can be intellectually uncomfortable. However, when you know that your business or holiday-related carbon footprint was offset by the hotel in collaboration with ALLCOT, then your stay at our hotel becomes more attractive. Therefore, I choose to invest in sustainability through ALLCOT and offset carbon emissions from Orhideea Residence & Spa to help guests think deeply about preserving our planet, but also from an “avant-garde” spirit. The ALLCOT sustainability program inspired me to follow their lead and make our hotel sustainable,” says Dragos Penca, Executive Director at Orhideea Residence & Spa.

The project chosen by Orhideea Residence & Spa to offset its unavoidable GHG emissions is a UN forestry project that protects standing forest and the indigenous flora and fauna.

The carbon neutral strategy of Orhideea Residence & Spa has been implemented in Romania with the help of Carbon Expert, which is the official ALLCOT partner for Eastern Europe. The projects promoted by Allcot and Carbon Expert are recognised by the United Nations and verified by third independent parties, such as Tuv or Lloyd Register. Allcot sustainability program promoted in Eastern Europe by Carbon Expert provides management solutions to increase energy efficiency and reduce CO2 emissions.

“Our projects for economic operators in Eastern Europe to voluntarily reduce the pollution are the precursor of the UN international politics of compulsory reduction of CO2. What today is voluntarily achieved at minimum costs, tomorrow will be mandatory at much higher costs. The most convincing example is given by big Romanian polluters: power plants, cement factories, etc., which have voluntarly implemented various technologies against pollution at lower costs before entering into the manadatory EU ETS, compared to operators, which have made this transition under the pressure of governmental penalties at the last moment. One thing is clear: the polluter pays. We come up with solutions to reduce these costs”, says Casiana Fometescu, Carbon Expert.  

“ALLCOT is delighted to be partnering with Orhideea Residence and Spa on their sustainability journey that is targeting zero emissions with reduced operational costs. Entering the Romanian market is a clear strategic objective of ours, so this collaboration is very exciting for us to be involved with.’’ Alexis Leroy, CEO, ALLCOT

The CO2 Market – 22.09.2015

The ICE exchange from London currently trades as follows:

• EUA spot:  € 8.00
• EUA Dec 15 futures: € 8.02
• CER Dec 15 futures closed: € 0.50
• Brent Crude spot: $ 48.19
• German Power Front Month (Oct. 15): € 33,10

The EU ETS Market

The EU environment ministers decided on Friday, 18.09.2015, the final formal adoption of the Market Stability Reserve (MSR) as expected. Six countries – among them Hungary, Poland and Bulgaria – voted against the draft resolution. Thus, the MSR will be introduced on schedule from 2019 and the 900 million allowances from the backloading can flow directly into the MSR.

Also last Friday the EU environment ministers agreed, after long debates, on a common EU position for the UN climate talks in Paris later this year. By the end of this century, a sustainable climate neutrality should be realised worldwide in order to keep the goal of limiting global warming to 2 ° C, according to the proposals of the EU environment ministers.

A reduction target of 50% below the greenhouse gas emissions from 1990 to 2050 is therefore considered to be an important milestone for all countries; all countries should reach their peak emissions by 2020 for the latest and from then on gradually reduce emissions.

As has been feared by the environmental groups and as has been demonstrated here again, the EU environment ministers only managed to agree on the lowest common denominator, which are not expected to lead to ambitious results in Paris. In particular, Greenpeace called for strong efforts in terms of ending the use of fossil energy sources such as coal, gas and oil by the year 2050.

Since many countries around the world have built their economic system on the use of fossil fuels – such as Poland or Australia – and have not yet begun the expansion of renewable energies in sufficient numbers, this will probably remain wishful thinking.

Source: European Commission – DG Clima, Brussels, and Advantag Brokerage Gmbh., Germany

The CO2 Market 15.09.2015

The ICE exchange from London currently trades as follows:

• EUA spot:  € 8.22
• EUA Dec 15 futures: € 8.25
• CER Dec 15 futures closed: € 0.49
• Brent Crude spot: $ 46.51
• German Power Front Month (Oct. 15): € 33

Carbon Expert, Romania – Allcot Group, Switzerland Strategic Partnership

We are glad to announce Carbon Expert – Allcot Group strategic partnership with the objective of developing sustainability and environment common projects in Eastern Europe.

Created in 2009, ALLCOT is focused on carbon markets as well as environmental consulting, management and in particular, the business of corporate sustainability.

ALLCOT Group has its headquarter in Switzerland, having an international team working in London, Madrid, Warsaw, Sao Paolo, and most recently, Bucharest. (http://www.allcot.com/key-personnel/)

Having been an active participant in the environmental industry for about half of the environmental sector’s lifetime, ALLCOT Group has perfected a know-how that allows us to offer a wide range of solutions for our customers and partners. Especially, in working with the development and implementation of environmentally and socially sustainable solutions, we have developed an all encompassing full value chain concept.

ALLCOT is a proud member of the International Emission Trading Association (IETA) as well as the Climate Markets and Investment Association (CMIA), the leading associative bodies and lobbies within our industry. Further, the company operates under the Quality Management System ISO 9001:2008 certified by Lloyds Register.

The voluntary projects promoted by Carbon Expert and Allcot Group are certified by international standards, which are recognised by the United Nations, and verified by certified, third-party organisations, such as Tüv or Lloyds Register.

Allcot Group services in the voluntary sector offered in Romania and other countries from Eastern Europe through Carbon Expert are the followings:

– Corporate sustainability services

o Environmental impact assessment
o Carbon inventory management
o Emissions reduction strategies
o Efficiency strategies
o Environmental initiative communication and stakeholder engagement strategies

– Project development services

o Project development under leading standards (eg. VCS, Gold Standard, and supplementary certifications)
o Crediting standard switch services (eg. VCS to Gold Standard)
o Marketing and Sales via B2B channels and stakeholder engagement
o Innovative B2C monetization and sales tools

For more information on Allcot Group: www.allcot.com

For more information on Carbon Expert: www.carbonexpert.eu

Top 20 Voluntary Offset Buyers

US car marker General Motors has topped a global list of voluntary offset credit buyers, according to NGO Ecosystem Marketplace.

In a report drawing from company data disclosed via surveys to not-for-profit group CDP, Ecosystem Marketplace found that 265 companies bought offsets voluntarily over 2012-2013, typically from sectors not covered by carbon regulation such as transportation, banks, finance and insurance, services and technology.

This amounts to around 11% of the 1,882 companies that disclosed data to CDP over the period, buying some 16.5 million tonnes in 2013.

General Motors bought 4.6 million carbon offsets over the period from carbon-saving projects in the US as part of an initiative to offset up to 8 million tonnes by 2015 to match the emissions from its Chevrolet division’s US new car sales.

UK-based bank Barclays was the second biggest buyer, with US utility PG&E Corporation and Brazilian cosmetics firm Natura tied for third. They are followed by Marks & Spencer Group, Bombardier Inc., Delta Air Lines, Microsoft Corporation, ANZ Banking Group, Allianz, Qantas Airways, Interface Inc, Deutsche Bank, National Australia Bank, Credit Suisse, Entergy, Bank of Montreal, TransAlta Corporation, TUI Group, British Sky Broadcasting.

The list did not include the Livelihoods Fund, which is aiming to source 8 million tonnes over 20 years on behalf of 10 European companies- Danone, Schneider Electric, Credit Agricole, Michelin, Hermes, SAP, CDC Climat, La Poste, Firmenich and Voyageurs du Monde.

Ecosystem Marketplace is an initiative of industry, investor and NGO coalition Forest Trends that promotes market-based approaches to forest protection.

Source: Allcot Group, Switzerland