The Carbon Market 3.12.2015

The ICE exchange from London currently trades as follows:

• EUA spot:  € 8.56
• EUA Dec ’15 futures: € 8.57
• CER Dec ’15 futures: € 0.53
• Brent Crude spot: $ 43.20
• German Power ‘2016: € 29,10

The International CO2 Market

Nine businesses, including Aviva, Sky, Fuji Xerox and DPD, have joined the UN’s Christiana Figueres to speak out about the benefits of offsetting carbon emissions, at this week’s climate negotiations in Paris at the UNFCCC.

In a video released today, the companies explain why offset strategies are good business sense, the challenges and opportunities their approach has created, and why they believe it has made a difference. Companies throughout the world, including Microsoft, Jaguar Land Rover and Marks and Spencer have adopted carbon-offset approaches to enable them to go beyond the reduction targets they could achieve through internal change.

Recent research from Carbon Disclosure Project Data shows that business who offset also take the lead in reducing their carbon emissions with the typical offset buyer cutting almost 17% of their scope 1 direct emissions compared to non offset buyers who reduced emissions by less than 5% in the same year.

By supporting carbon-offset projects, businesses are investing in the local environment and communities, delivering positive impacts beyond the carbon reduction. While these ‘co-benefits’ vary by project, a market representative average was recently calculated by Imperial College London University at $664 for every tonne of carbon offset.

Source: IETA, Paris

The Carbon Market 18.11.2015

The ICE exchange from London currently trades as follows:

• EUA spot:  € 8.60
• EUA Dec ’15 futures: € 8.64
• CER Dec ’15 futures: € 0.65
• Brent Crude spot: $ 45.01
• German Power ‘2016: € 28,92

The European CO2 Market

On 10 November 2015, the Council adopted a new directive to limit the emissions from combustion plants of medium size. These new rules are part of the clean air legislative package, which aims at improving air quality in the EU.

The new directive sets emission limit values for certain pollutants. These limits will be applied for new and existing combustion plants of medium size (between 1 and 50 MW).

Main elements of the new directive include:

• compulsory registration of medium combustion plants
• specific emission limits for certain pollutants: sulphur dioxide, nitrogen oxides and dust
• rules to monitor another pollutant: carbon monoxide

There are different deadlines to apply the emission limits:

• for bigger existing plants (5-50 MW): from 2025
• for smaller existing ones (1-5 MW): from 2030
• for new plants: after a transposition period of two years following entry into force
• extended compliance deadlines until 2030 may be granted to some plants (district heating systems, plants firing biomass as their main fuel, plants in small isolated systems and plants linked to a national gas transmission system)

Source: The European Council, Brussels

The Carbon Market 10.11.2015

The ICE exchange from London currently trades as follows:

• EUA spot:  € 8.35
• EUA Dec ’15 futures: € 8.40
• CER Dec ’15 futures closed: € 0.63
• Brent Crude spot: $ 47.24
• German Power ‘2016: € 28,87

The European CO2 Market

A newly released report has found the waste sector has a key role to play in the development of a low carbon economy and the reduction of greenhouse gases (GHGs). This report comes in advance of the UN Climate Conference in Paris, which will take place in December.

The report was commissioned by Zero Waste Europe, in partnership with Zero Waste France and ACR+. The report finds that the role of waste prevention and improved waste management can play in reducing GHG emissions and the development of a low carbon economy has previously been significantly understated, partly due to the structure of the national inventories of the UNFCCC.

The CO2 Market 03.11.2015

The ICE exchange from London currently trades as follows:

• EUA spot:  € 8.57
• EUA Dec ’15 futures: € 8.69
• CER Dec ’15 futures closed: € 0.63
• Brent Crude spot: $ 46.57
• German Power ‘2016: € 29,25

The European Carbon Market EU ETS

Carbon market throughout the past month of October proved to be very bullish. The price of European allowances increased week after week, reaching thereby a few times new three-year highs. With a peak of 8.71 euros for the December contract this was also the case in the past week, but overall the uptrend slowed somewhat.

If we will see in the coming days a correction at the market, it could push the price back to a level above 8.50 euros. However, according to recent experience, the correction could well turn out even more moderate. If on the other hand the bullish trend continues, the line of 8.80 euros could be overcome in the foreseeable future.

The rise in prices logically had a positive effect on the auction proceeds. Thus, for example, Germany made with their auction last Friday (with an unchanged sales volume) an increase of more than two million euros revenue than a month ago. Romania will auction in 2015 25,395,500 EUAs in weekly installments of approximately 560,000 EUAs.

Source: Advantag Brokerage Gmbh. and EEX., Leipzig

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