First Climate Insights || August 2009

Issue 4 | August 2009

Dear readers,

Given the current economic situation, any new carbon market figures are received with much interest and are looked at as a gauge for where the market may be heading. A recent study on the state of the voluntary carbon market, that shows market growth slowing substantially in 2008, has thus given rise to some analysts' concluding that market saturation may have been reached or that the effect of the crisis looms exceedingly large. Daniel Hires, Manager Marketing & Sales Climate Neutral at First Climate, has taken a close look at the figures behind this year's report and its earlier precursors. He concludes that market growth may well not have slowed quite as dramatically as it seems - in fact he finds a number of positive developments boding well for the voluntary market.

Also in our fourth edition: an article by senior analyst Alina Averchekova, highlighting developments in the policy arena with a look at the most recent post-2012 negotiation and technical sessions in Bonn. Connecting these two articles is a piece by Jim Heath, Vice-President Carbon Asset Development at First Climate LLC, who reports on developments in the offsetting market in Australia and the US, tracing current discussions and outlining possible design aspects for future cap-and-trade systems.

Wishing you an enjoyable read,

A breather, not the turning point: Thoughts on the Voluntary Carbon Market

The State of the Voluntary Carbon Markets 2009 study by Ecosystem Marketplace and New Carbon Finance found that the voluntary carbon market only doubled in value last year. Daniel Hires, Manager Marketing & Sales Climate Neutral at First Climate, argues that the study’s findings do not suggest that the financial crisis has led to the market’s saturation.

Read Article

Post-2012 negotiations pick up speed in Bonn

The session of the international negotiations on post-2012 climate change policy in June in Bonn was significant, as it was the first time that countries considered the draft negotiating texts prepared by the Chairs under both negotiating tracks, under the Convention and under the Kyoto Protocol. Dr. Alina Averchenkova, Senior Analyst for International Climate Policy at First Climate, reviews the meeting’s outcome.

Read Article

Australia‘s unique opportunity - domestic offset programs offer powerful incentives

As the world prepares for post-2012 negotiations in Copenhagen this December, First Climate LLC’s Jim Heath comments on the development of an Australian domestic offset scheme.

Read article

Project developers aim to lock in their future carbon credit revenues now

Creating certainty for project developers while a post-2012 agreement has not yet been accomplished, the investors behind the Post 2012 Carbon Credit Fund affirm their commitment to the carbon credit market. At the Carbon Expo in Barcelona, the Fund announced continued interest among project developers as uncertainty over a post-2012 agreement persists.

View Press Release

Encouraging continuity for emission reduction projects after 2012

Capacity building seminar co-hosted by Philippine DNA in Manila on August 28, 2009

Manila, August 1, 2009 – While the Clean Development Mechanism (CDM) is acknowledged to be very effective in combating climate change, its role after 2012, when the first commitment period of the Kyoto Protocol ends, is still uncertain. The Philippine Designated National Authority (DNA), in collaboration with First Climate and other private sector companies, will host a capacity building seminar in Manila on August 28, 2009 to address this and other issues related to the post-2012 CDM market. The full-day seminar will focus on:

Current status of the global CDM market and the situation in the Philippines
Recent developments regarding an international agreement and outlook beyond 2012
Carbon credit demand/supply and price scenarios for the post-2012 period
Project developer’s perspective: Hedging price and regulatory risks. Sell now or later?
Who buys post-2012 carbon credits if Copenhagen fails? The role of carbon funds
How banks can assist in CDM project development
Legal considerations in negotiations of ERPAs both before and after 2012

Executives of public and private entities in the industrial and agricultural sectors, who have an interest in or experience with CDM projects, as well as stakeholders from related fields such as financial institutions, private investors, government agencies and NGOs will benefit from the interactive discussions with experienced carbon market professionals.

Jointly organized by the Philippine DNA, the Land Bank of the Philippines, leading international law firm Norton Rose Group, local project developer Philippine Bio Sciences Company Inc. and First Climate, the seminar is free of charge, but as places are limited, early registration is recommended. Registrations can be made online: http://cdmdna.emb.gov.ph

For further information about the seminar, please contact Lukas Heer, Regional Manager Southeast Asia, under lukas.heer@firstclimate.com.

First Climate staff regularly participate as speakers or workshop leaders

in numerous conferences and events, where they discuss the latest market developments and opportunities.

For more information about upcoming speaking engagements, please visit our
Event Calendar


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