Advanced Brazilian Beehive Kiln - the Katoomba Group

Advanced Brazilian Beehive Kiln - the Katoomba Group Advanced Brazilian Beehive Kiln - the Katoomba Group

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12.07.2015 Views

Factors influencing CDM CarbonMarket Development• OECD will miss targets by 20-30% if no action is taken• Published Marginal Abatement Cost estimates insideOECD: $67-$584/ton C. But this likely under-estimates“low hanging fruit” in US and less energy-efficient OECDeconomies• Clearing price with full trade: $20-50/ton C. $20/t/C ismore realistic• Dutch Study: CDM/developing country “technical” supplypotential is 1.6 billion tons at up to $22/t/Carbon• Developing Country Capacity Constraints will limitvolume of of supply• CDM project cycle transaction costs and possible8additionality requirements are key factors in cost of supply

• Does CDM create a new “sovereigncommodity” market regulated by the Protocolor a project-based facility like GEF with exantereview and clearance of each transaction• For CDM to meet Technology Transfer andSustainable Development goals requires– high volume private investment– risk management and profit opportunity through activesecondary market– ‘ex post’ market-based regulation rather than ‘ex ante’project by project review, ie Low transaction costs– fungibility and transferability of emission reductionsCompeting CDM Models andCarbon Market Development

• Does CDM create a new “sovereigncommodity” market regulated by <strong>the</strong> Protocolor a project-based facility like GEF with exantereview and clearance of each transaction• For CDM to meet Technology Transfer andSustainable Development goals requires– high volume private investment– risk management and profit opportunity through activesecondary market– ‘ex post’ market-based regulation ra<strong>the</strong>r than ‘ex ante’project by project review, ie Low transaction costs– fungibility and transferability of emission reductionsCompeting CDM Models andCarbon Market Development

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