Focus CO2: Cap. Count. Trade.

Carbon Coupons

Ken Carter — Fri, 20 Feb 2009 16:24:29 +0000

These are not the like the coupons which you cut out of the sunday paper. I call them coupons because they will essentially serve the same purpose; to lower the costs of those goods and services which reduce carbon emissions.

Take for example Sofame Technologies (TSX: SDW), a Canadian based heat recovery equipment manufacturer. Sofame has established a carbon credit division called Sofame Carbon. The division expects to receive carbon credits based on the equipment’s energy-saving abilities and then pass those savings along to customers. So, perhaps Sofame Carbon will start putting carbon coupons in the Sunday paper. I doubt it, but you get the point.

This is something I expect to see more of in the new carbon economy.

There are a few issues that will have to be addressed, though, such as how to ensure that the credits are additional and not required by law. I would expect this will take the shape of a pre-screening, where select customers will qualify for the credits, thus lowering the cost of the technology. There might be other questions about ownership and ongoing project monitoring, but I expect to see these worked out on a trial-by-fire basis.

In the end, carbon coupons will serve the purpose; to subsidize the incremental cost of choosing low carbon equipment, thus rewarding more sustainable practices. Of course, this is all dependant upon the development of a properly functioning cap-&-trade market…

Tagged: LinkedIn, linkedin carbonmarket

Additionality, Additionality, Additionality

Ken Carter — Mon, 20 Oct 2008 23:34:51 +0000

link

The Scope of American Business Affected by Potential Regulation of CO2

Ken Carter — Mon, 20 Oct 2008 01:22:42 +0000

The report “A Regulatory Burden: The Compliance Dimension of Regulating CO2 as a Pollutant” (Sept. ’08), by Mark Mills and Portia Mills, was published by the U.S. Chamber of Commerce in order to examine the scope of American business which could be affected by compliance measures if the EPA regulates CO2 under the Clean Air Act. The report is a series of tables representing different sectors of the economy, and the number of establishments that are estimated to pollute more than 250 tons per year of CO2. The report uses calculations based upon reported on-site fuel consumption by the various sector categories.

Tagged: Carbon Market, Carbon Offsets, Compliance, LinkedIn, Regulation

Carbon Market Valued at $3 Trillion by 2020; if U.S. Installs Cap-and-Trade

Ken Carter — Mon, 13 Oct 2008 22:02:29 +0000

The value of the World carbon market could top $3 trillion by 2020, if the U.S. implements carbon constraining legislation. Without a U.S. scheme, the value is predicted to be around $2 trillion, according to the latest quarterly analysis from New Carbon Finance. They also expect the market to be worth $116 billion by the end of 2008.

Tagged: Carbon Market, Future Value, LinkedIn