Skip to comments.China carbon market prospects not optimistic (Mexican resort of Cancun)
Posted on 06/09/2010 1:56:08 PM PDT by day21221
China carbon market prospects not optimistic
Although China has supplied massive volumes of carbon credits to the global market, prospects for CO2 trade within the country itself are not optimistic, a senior climate official said on Sunday.
Lu Xuedu, influential vice-head of China's National Climate Centre and former member of the United Nations Executive Board responsible for approving clean development mechanism (CDM) projects, told a conference in Beijing that carbon transaction volumes within China were likely to remain low.
"The domestic market will probably remain small, because you just need to ask the simple question -- Who will buy emissions in China?" he said.
Under the UN's Kyoto Protocol, China has been under no obligation to cut its own carbon emissions, and Lu said the only potential domestic buyers were big enterprises or high-income celebrities trying to improve their reputations.
China has been a supplier rather than a buyer of carbon credits and remains a key player in the CDM, a part of the Kyoto Protocol that allows industrialised nations to invest in clean projects in the developing world in exchange for offsets known as certified emission reductions (CERs), which can either be traded or used to comply with mandatory national CO2 targets.
China has been by far the biggest supplier of CERs on the world market, but developers have not been allowed to trade the credits domestically. Instead, a plethora of new environmental exchanges in Beijing, Shanghai and elsewhere have expressed hope that voluntary emissions markets will emerge to fill the gap. However, voluntary volumes have so far remained negligible.
There have been around 3,000 trades of voluntary emission reductions (VER) in China so far, exchange officials said, involving a total volume of 10,000 tonnes. The global total stood at 93 million tonnes last year, down 27 percent compared to 2008, according to research released on Sunday by Bloomberg New Energy Finance. The first phase of Kyoto ends in 2012 and negotiations are still continuing on a new global pact after the world community failed to reach a binding deal in the Danish capital of Copenhagen at the end of last year.
Lu said if the United States failed to pass its own climate legislation by the end of July, it was unlikely that a new binding agreement could be sealed during the meetings in the Mexican resort of Cancun at the end of this year.
Out of the total 2,214 CDM projects approved by the Executive Board by the middle of May, 851 originated in China, making it the "most successful" CDM country, Lu said, but there is a backlog of more than 1,600 Chinese projects still awaiting approval.
China's dominant position in the CDM sector has been criticised, with many accusing the country of producing large amounts of low-quality offsets from environmentally dubious projects involving the abatement of industrial gases like hydrofluorocarbons and nitrous oxide.
The Executive Board has been preoccupied with quality control. After turning its fire on the large number of wind power projects being submitted from China -- which it said had been given favourable power prices and were therefore ineligible for CDM support -- there are now indications that it is eyeing Chinese hydropower plants.
But the biggest problem with the current CDM market is demand, which remains uncertain as potential investors and project developers wait for clarity about what will happens after 2012, Lu said.
The United Nations Global Compact presents a unique strategic platform for participants to advance their commitments to sustainability and corporate citizenship. Structured as a publicprivate initiative, the Global Compact offers a policy framework for the development, implementation and disclosure of sustainability principles and practices related to its four core areas: human rights, labour, the environment and anti-corruption. Indeed, managing the enterprise risks and opportunities related to these areas is today a widely understood aspect of long-term “value creation” value creation that can simultaneously benefit the private sector and societies at large.
With over 7700 business participants and other stakeholders from more than 130 countries, the Global Compact offers participants a wide spectrum of specialized workstreams, management tools and resources, and topical programmes and projects all designed to help advance sustainable business models and markets in order to contribute to the initiative’s overarching objective of helping to build a more sustainable and inclusive global economy.
The Corporate Commitment
The Global Compact is a leadership initiative, involving a commitment by a company’s Chief Executive Officer (or equivalent), and supported by the highest-level Governance body of the organization (eg, the Board).
Participation in the Global Compact is a widely visible commitment to the implementation, disclosure, and promotion of its ten universal principles. A company joining the initiative is expected to:
Make the Global Compact and its principles an integral part of business strategy, day-to-day operations and organizational culture;
Incorporate the Global Compact and its principles in the decision-making processes of the highest-level governance body (i.e. Board);
Contribute to broad development objectives (including the Millennium Development Goals) through partnerships;
Integrate in its annual report (or in a similar public document, such as a sustainability report) a description of the ways in which it implements the principles and supports broader development objectives (also known as the Communication on Progress); and
Advance the Global Compact and the case for responsible business practices through advocacy and active outreach to peers, partners, clients, consumers and the public at large.
In addition to these actions, participating companies are asked, upon endorsement, to make a regular annual financial contribution to help support the work of the Global Compact. The general contribution levels are set as follows:
For companies with annual sales/revenues of USD 1 billion or more, the suggested annual contribution is USD 10,000;
For companies with annual sales/revenues between USD 250 million and USD 1 billion, the suggested annual contribution is USD 5000;
For companies with annual sales/revenues of less than USD 250 million, the suggested annual contribution is USD 500.
Companies are asked for these annual contributions as part of their participation in the Global Compact. (Additionally, sponsorship opportunities are available related to events and specialized workstreams.) The Foundation for the Global Compact, a registered 501(c)(3) organization, serves as the financial intermediary for all contributions.
Benefits of Participation
Participation in the Global Compact offers numerous benefits:
Adopting an established and globally recognized policy framework for the development, implementation, and disclosure of environmental, social and governance policies and practices.
A platform to share and exchange best and emerging practices to advance practical solutions and strategies to common challenges.
The opportunity to advance sustainability solutions in partnership with a range of stakeholders, including UN agencies, governments, civil society, labour, and other non-business interests.
The opportunity to link business units and subsidiaries across the value chain with Global Compact Local Networks around the world many of these in developing and emerging markets.
Access to the UN’s extensive knowledge of and experience with sustainability and development issues.
Utilizing Global Compact management tools and resources, and the opportunity to engage in specialized workstreams in the environmental, social and governance realms.
Climategate” author Brian Sussman will be a guest tonight on the popular overnight radio show “Coast to Coast AM” with George Noory.
Sussman, a highly acclaimed former meteorologist, is scheduled for two hours, beginning at 3 a.m. Eastern Time.
Sussman’s new book, asserts the move to restrict carbon-dioxide emissions, tax energy programs and create a “Big Brother” that would limit household energy use ultimately is an effort to give government unlimited control over people.
“These people have a plan and they intend to control much more than your thermostat,” Sussman says.
In “Climategate,” he explains how politics has taken control of the science of climate change.
“It’s a social-engineering scheme, designed and promoted by the federal government to change your behavior,” Sussman says.
(Story continues below)
The revelations from the e-mails hacked from the Climatic Research Unit at the University of East Anglia last fall have reduced the credibility of one of the world’s leading atmospheric institutions to “junk science,” Sussman writes.
“The e-mails reveal that the world’s leading climate scientists were working together to block Freedom of Information requests to review their data, marginalize dissenting scientists, manipulate the peer-review process, and obscure, massage or delete inconvenient temperature readings,” Sussman writes. “One certainly wonders, why? Especially since Al Gore has assured the world that ‘the science is settled.’”
Sussman's CLIMATEGATE is in my library but I haven't gotten to it yet.
Carbon credits are nothing more than mob-like protection. Sort of like the local grocer having to play Guido (or these days Derrell or Jose) so his mob (or gang) won’t tear up his store.
Is this the same China that puts melanine in milk that kills babies?
Well, then, they wouldn't cheat on mere carbon credits. I'm sure they're good for their word.
Yup...and the grocer has to raise his prices to compensate for the 'hit' and passes that cost on to you. It's just another tax and another notch down in our loss of freedom.
This too will be corrected during the revolution.
Somebody send this kid to engineering and design school. As an instructor...