Technology, Carbon Markets and Climate Change: Charting the Future
“The Canadian government is conscious of the responsibility it shares with other Parties to eliminate or lower barriers to carbon markets, without compromising environmental integrity.”
With those words Foreign Affairs Minister Pierre Pettigrew and Head of the Canadian Delegation opened the Carbon Finance Conference, a standing-room only, one-event Conference co-sponsored by the International Emission Trading Association and World Bank Carbon Finance Business, with support from the Government of Canada.
The Conference gave participants the opportunity to focus on concrete actions under the Kyoto Protocol that can be taken by using the mechanisms and incentives that integrate environmental goals into the economy.
Minister Pettigrew focussed on two economic tools that he described as ‘essential’ in assisting governments and the private sectors in their emissions reduction efforts: the Clean Development Mechanism (CDM) and Joint Implementation (JI).
- On the CDM: “It must become one of the tools to ensure that the development world has access to cleaner sources of energy and clean, climate-friendly technology. The CDM will also allow all countries to achieve a more sustainable form of development.”
- On JI: “(JI) projects can be an effective tool in the transfer of cleaner technologies between industrialized nations.
Minister Pettigrew said he expects Canada to support a strong global carbon market and will itself become a carbon buyer in the near future. Allan Aimey, President of the Canadian Carbon Fund, reinforced Canada’s readiness, telling participants that “opportunities exist for Canada to move to a low carbon future”.
A series of panel discussions then reviewed the readiness of the market and issues such as the regulatory environment and risk management strategies. Participants traded views on lessons learned, experience gained, market creation, the European Union trading system and pricing, as well as emerging U.S. interest in creating greenhouse gas markets.
Carbon Day Finance Exhibits
Conference participants toured 50 booths set up as part of Carbon Finance Day. Exhibitors showcased their climate change mitigation technologies and services, including the market-based approaches to carbon trading.
Canada: Daily Highlights interviewed some exhibitors on site and asked them what their firm was doing to contribute to the “World of Solutions” on the issue of climate change. Their answers are below:
- Douglas Russell, Managing Director, Natsource: “Natsource’s Buyers’ Pool, which closed in October 2005 at $600M (USD), links private sector capital to developing countries projects that both reduce emissions and contribute to sustainable development.”
- Nina Kozobova, Danish Carbon Fund: “The Danish Carbon Fund (100M Danish Crowns) undertakes JI projects in Eastern and Central Europe with a number of successes to date, including a Windmill Park in Estonia, biomass energy and a geothermal energy project in Romania and a methane utilization project in Poland.”
- German Cripovich, Senior Associate, C02e.com: “CO2e.com brokers and provides consulting service for project implementation. In Chile a manure management project reduces methane emissions while a second methane capturing project inEcuador is currently undergoing validation.”
- Leo Hakka, President, Cansolv Technologies Inc.: “We take dirty fuel such as high sulphur coal from the flu gas and capture the CO2 in a regenerable chemical so in the end what goes out the stack is as clean as natural gas. The benefit is that nothing is left behind to pollute the environment.”
(More Information on the Carbon Finance Day Conference or exhibits can be found at: www.ieta.org or www.carbonfinance.org)