The Carbon Market 28.10.2015

The ICE exchange from London currently trades as follows:

• EUA spot:  € 8.61
• EUA Dec 15 futures: € 8.63
• CER Dec 15 futures closed: € 0.60
• Brent Crude spot: $ 46.76
• German Power Front Month (Nov. 15): € 34,68

Paris International Climate Change Agreement

If all countries meet the goals outlined in their pledges in the run up to the Paris Climate Summit, growth in energy-related emissions– which account for two-thirds of total greenhouse gas emissions –will slow to a relative crawl by 2030.

A Special Briefing was released this week by the International Energy Agency (IEA) on the energy sector implications of national climate pledges (known as Intended Nationally Determined Contributions or INDC’s) submitted for the upcoming climate summit in Paris (COP21).

“The fact that over 150 countries – representing 90% of global economic activity and nearly 90% of global energy-related greenhouse gas (GHG) emissions – have submitted pledges to reduce emissions is, in itself, remarkable,” said IEA Executive Director Fatih Birol.

“These pledges, together with the increasing engagement of the energy industry, are helping to build the necessary political momentum around the globe to seal a successful climate agreement in Paris”

Source: Globe Net, October 2015

The CO2 Market 12.10.2015

The ICE exchange from London currently trades as follows:

• EUA spot:  € 8.33
• EUA Dec 15 futures: € 8.35
• CER Dec 15 futures closed: € 0.61
• Brent Crude spot: $ 53.13
• German Power Front Month (Oct. 15): € 32,80

The European Carbon Market -EU ETS

At the end of a very calm and balanced week the price of carbon allowances on Friday, 09.10.2015, increased significantly by more than 20 cents on Monday. At the close of trading the December futures recorded a level of 8.35 euros, only two cents below the session high. The same settlement price posted the market last seven weeks before.

The market situation, however, in the coming months will not be dominated by the expected upsurge of political and editorial statements in the context of the World Climate Summit in Paris. Although the expected decisions might proof extremely important, they hardly will have any effect on the ETS. Only an absolutely disappointing outcome of the summit might also impact negatively on the price for the European allowances. Rather, it is assumed that with rising demand and lower willingness to sell current surplus of certificates, the price will continue to rise calmly.

In the wake of prices for EUAs also reduction certificates have risen considerably in the past few weeks. CER costs now almost 20 percent more than at the end of last month.

Source: Advantag Brokerage Gmbh., Germany

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

The CO2 Market 27.08.2015

The ICE exchange from London trades on CO2 instruments:

EUA spot:  € 8.11
EUA Dec 15 futures: € 8.14
CER Dec 15 futures closed: € 0.50
Brent Crude spot: $ 44.76
German Power Front Month (September 15): € 32.40

International News

This week is World Water Week in Stockholm, Sweden, where experts, practitioners, decision-makers, business innovators and young professionals from a range of sectors and countries have come together to network, exchange ideas, foster new thinking and develop solutions to the most pressing water-related challenges of today.

In the world, there is enough freshwater on Earth to meet global demand. Yet, according to recent UNICEF published data, each day 663M people go without safe water.

The Gold Standard has launched “Water Benefit Standard” that will drive funding and long-term governance to critically important water projects. By applying a Gold Standard results-based finance, or ‘payment for performance’ model, proven for a decade in financing successful clean energy projects, the investment will drive into programmes that supply, purify, and conserve water.

Water Benefit Standard Goals are the following:

• To provide safe water to local communities
• To conserve water by decreasing consumption
• To ensure other environmental and social benefits to local communities

Carbon Expert offers you advice in developing such projects or other projects of CO2 emissions reductions.

The Carbon Market 13.08.2015

The ICE exchange from London closed up its CO2 operations. In fact, the carbon price did not follow the trend of other related markets.

• EUA spot:  € 8.15
• EUA Dec 15 futures: € 8.20
• CER Dec 15 futures closed: € 0.47
• Brent Crude spot: $ 49.49
• German Power Front Month (September 15): € 32.91

Climate Change Agreements

Representatives of the 193 UN member states agreed on 17 very ambitious targets for equitable and sustainable development, which will be adopted of the heads of governments at a summit in New York at the end of September. Among other things, the UN agreement provides that the countries of the world will eliminate by 2030 “poverty anywhere in the world and in any of its forms” and hunger. Moreover, access to health care and education should be improved and the gender equality should make progress. The program also calls for “sustainable modes of production and consumption”, and promoting “peaceful and open for all companies.”

One of the 17 objectives is the fight against climate change. In this context the importance of the negotiations on a binding international agreement on climate change has been highlighted again, which should be performed in December at the UN Climate Change Conference in Paris to a successful conclusion. In contrast to the other 16 points the implementation of the agreement in Paris would mean a binding contract. All other points are voluntary and their implementation is expected to be a major effort not only for financial reasons.

Positive sounds the news from last week that a number of well-known US companies decided for voluntary investments totaling more than $ 140 billion on the initiative of the American president. At the same time, US President Barack Obama announced significant measures to combat the greenhouse effect. As a central point of the proposed rules, existing power plants must for the first time reduce their emissions – until 2030 by 32 percent compared to 2005.

The Carbon Market 14.07.2015

The ICE exchange from London closed up its CO2 operations. In fact, all exchanges rose up yesterday as a consequence of the Greek compromise.

• EUA spot:  € 7.76
• EUA Dec 15 futures: € 7.80
• CER Dec 15 futures closed: € 0.44
• Brent Crude spot: $ 58.51
• German Power Front Month (September 15): € 32.10

The International CO2 Voluntary Market

According to 2015 Ecosystem Marketplace Report, voluntary buyers (companies and individuals) spend nearly USD 4.5 billion on offsets to combat climate change impacts. Also, in the last 10 years, the voluntary carbon market reached 1 billion tonnes of CO2, according to the same Report.

The voluntary carbon market represents all voluntary initiatives of private companies and individuals who, not being constrained by any imposed or mandatory legislation, devote their efforts to reduce greenhouse gas emissions by calculating and offsetting their carbon footprint through purchases of voluntary CO2 certificates, issued by certified standard organizations, such as Gold Standard from Switzerland and Verified Carbon Standard from the US.

Business benefits of these voluntary actions of sustainability consist in promoting their image as leaders in the emerging market trend “zero CO2 or zero carbon”, that will become, eventually, a prerequisite.

We remain at your disposal for further details or you can read more here.

The Carbon and Energy Markets 25.06.2016

The ICE exchange from London opened up its CO2 operations:

• EUA spot: € 7.54
• EUA Dec 15 futures: € 7.60
• CER Dec 15 futures: € 0.40
• Brent Crude spot: $ 63.49
• German Power Front Month (June 15): € 31.04

The Energy Market

Over 7.7 million people worldwide are currently employed in the renewable energy industry, according to a new report released by the International Agency for Renewable Energy (Renewable Energy and Jobs – Annual Report 2015, IRENA). This represents an increase of 18% over last year, when there were 6.5 million employees.

The European Union and the United States registered a decrease of jobs in renewable energy in the world: 25% in 2014 compared to 31% in 2012. The figures show that more and more countries, especially in Asia, have developed renewable technologies.

In correlation with this data, Carbon Tracker shows that the main electricity utilities in Europe (E-on, Enel, RWE, GDF Suez, EDF), with a current European energy market share of 60%, fell by 37% in 2008-2013, as a result of green technologies.