Overhaul CDM for Carbon Credibility & Environmental Integrity

The European Union’s top climate official this week called for a major overhaul of the UN’s carbon credit mechanism amid concerns from environmental groups. The Clean Development Mechanism “has been successful in some aspects but has also given rise to criticism with regard to environmental integrity,” European Climate Action Commissioner Connie Hedegaard said. CDMs and carbon trading are a major focus of the Carbon Forum Asia from 27 – 28 October in Singapore.

AFP report in The Age (26 August 2010):

The European Union’s top climate official this week called for a major overhaul of the UN’s carbon credit mechanism amid concerns from environmental groups.

The Clean Development Mechanism “has been successful in some aspects but has also given rise to criticism, for example, with regard to environmental integrity,” European Climate Action Commissioner Connie Hedegaard said.

“As a first step towards a more advanced carbon market the CDM therefore needs a major overhaul,” Hedegaard said in a statement.

The commissioner said she would propose new restrictions on the use of credits from industrial gas projects under the EU’s emission trading scheme after 2012, the end of its current trading period.

Under the CDM, companies in rich countries can claim carbon credits to offset against their own greenhouse-gas emissions if their project qualifies as an initiative that reduces emissions in a poor country.

The credits can then be bought and sold, like any asset.

But environmental groups have asked for a revision of the mechanism, arguing that it lacks balance, has actually led to growth in the potent HFC-23 greenhouse gas and subsidised the chemical industry.

“The international debate has made it quite clear what changes to the CDM are needed … and also what successor mechanisms should be put in place to make the carbon market an even more powerful instrument to reduce emissions,” Hedegaard said.

Source: www.news.theage.com.au

Carbon Forum Asia Report from Singapore:

As of July 2010, the United Nations Framework on Climate Change Convention (UNFCCC) has registered over 2,300 CDM projects globally, an increase of more than 35 percent over a year ago. More than three-quarters of these projects are registered in Asia and the Pacific, spelling once again the abundant opportunities in the region’s carbon trading markets.

With the Kyoto protocol nearing its expiration date in 2012, climate change negotiators are focusing their attention on reaching a definitive agreement for a global fight against climate change. These, and other exciting developments in the emissions trading and global carbon markets will be the centrepiece of the discussions at the fifth edition of CARBON FORUM ASIA, from 27 – 28 October 2010 in Singapore.

Returning with an even more incisive conference program and comprehensive trade fair, CARBON FORUM ASIA 2010 will once again bring together representatives from more than 50 countries in a key gathering prior to the climate change talks in Cancun, Mexico, at the end of this year.

As the Carbon Market continues to grow and the need for a new international treaty becomes more intense, the leading Trade Fair and Conference in Asia is expecting to welcome some 1,000 international participants over the two days.

“Asia has dominated the supply side of the global carbon market over its short but dynamic history,” said Henry Derwent, President and CEO of the International Emissions Trading Association (IETA). “But key Asian countries are now on the brink of adopting emissions trading; so investors and market players must now gauge Asian demand as well as supply. CARBON FORUM ASIA is the place where the experts set out the trends and the politics that will define what could be the most exciting new market of the 21^st century”.

Asia still a key driver in global CDM market

While China and India account for more than 60 percent of 1,780 registered Clean Development Mechanism (CDM) projects in Asia to date, emerging economies like Indonesia, Malaysia, Thailand and the Philippines are also notable contributors to the world’s CDM market.

With some 150 international companies and organizations such as Enel, Endesa, Vattenfall, Orbeo, Rhodia Energy Services, TÜV Rheinland, DNV, Baker & Mckenzie and Deutsche Bank expected to be represented at the CARBON FORUM ASIA Trade Fair, visitors to the event will gain a unique and comprehensive perspective of the Carbon Market activities across the globe.

Australia, Germany, Japan and Singapore are some of the countries who will be hosting official country pavilions, providing visitors with a more focused view of the carbon market regulations, initiatives and innovations in each country.

The Asian Development Bank (ADB) will once more continue to gather project owners from developing countries in a special projects pavilion where Carbon Market sellers and traders can easily identify the opportunities available in these economies, while gaining insights into the types of projects dominating the global CDM investment market.

Held just prior to the important round of climate change talks in Mexico, CARBON FORUM ASIA continues to play a key role in shaping Asia’s viewpoints and contributions to the global climate change abatement efforts.

With over 130 speakers from key global and regional private and public organizations, and authoritative players in the emissions trading landscape, such as World Resources Institute, WWF, China Clean Development Mechanism Fund Management Center, Malaysia’s Biomass-SP, National Australia Bank, Chevron, Shell, Asian Development Bank, IETA, Japan Bank for International Cooperation, UNFCCC, World Bank, and Mexico as the COP16 Host, the CARBON FORUM ASIA Conference will define the key issues impacting the outcome at Cancun.

Covering topics spanning the latest developments in markets around the world, how Asia will fit into the global market of the future, the role of CDM at a time of global change, climate and carbon financing, venture capital, forestry and renewable energy, the CARBON FORUM ASIA 2010 Conference aims to provide participants with insights into the decisive and critical topics influencing the global discussion on emissions trading and climate change.

The Asia-Pacific carbon market crossroads

CARBON FORUM ASIA 2010 is expected to attract about 1,000 participants from across the globe, providing the perfect avenue for networking and exploring further opportunities and innovations in the multi-billion dollar Carbon Market.

Jointly organized by IETA and Koelnmesse, CARBON FORUM ASIA 2010 will be held on 27 and 28 October at the Raffles City Convention Centre, Singapore.

CARBON FORUM ASIA 2010 is the opening anchor for the Singapore International Energy Week (SIEW), which features a week-long calendar of energy-related trade fairs, conferences and dialogues, expected to draw more than 10,000 participants.

Last year’s CARBON FORUM ASIA showcased over 60 projects and drew 924 participants from 106 countries.

Source:  www.singapore.iew.com.sg and www.carbonforumasia.com