Beyond regulation – opportunities for businesses Conference “Ökologische Steuerreform und Emissionshandel” Winterthur, 25.10.2013 Andrea Rumiz – Director Sales, South Pole Group This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from South Pole Carbon Asset Management Ltd. This material was used by South Pole Carbon Asset Management Ltd during an oral presentation; it is not a complete record of the discussion.
26
Embed
Beyond regulation opportunities for businesses · Beyond regulation – opportunities for businesses Conference “Ökologische Steuerreform und Emissionshandel” Winterthur, 25.10.2013
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Beyond regulation – opportunities for businesses Conference “Ökologische Steuerreform und Emissionshandel”
Winterthur, 25.10.2013
Andrea Rumiz – Director Sales, South Pole Group
This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from South
Pole Carbon Asset Management Ltd. This material was used by South Pole Carbon Asset Management Ltd during an oral presentation; it is not a complete record of the discussion.
2
South Pole Group – developing solutions worldwide
Johannesburg
Zurich
Jakarta
Bangkok
Taipei
Beijing
Mexico City
• 2006: Incorporation in
Zurich / Switzerland
• >76% employee owned
• No debt; profitable; very
healthy balance sheet
• Present on all continents
• 2011, 2012 & 2013: Best
Project Developer*
• Swiss Social Entrepreneur
of the
Year**
• >90 carbon pros from 22
countries
• Carbon management for
>250 emission reduction
projects worldwide
Stockholm
Local presence
as of May 2013
Hanoi New Delhi
Medellin
Satellite office
Head office
* Environmental Finance’s Voluntary Carbon Market Survey 2011, 2012 and again 2013
** Schwab Foundation/WEF
Kampala
Melbourne
London
Sydney
Kuala Lumpur
Source: South Pole Group
3
Beyond offsetting – South Pole as solution provider
Climate
Neutrality
Source: South Pole Carbon
•VERs
•GS CERs
•GoldPower
•Emission
reduction
project
development
•Portfolio
Management
•Consulting for
development
banks
•PoA
development
on own account
or as consulting
•Development
of forestry
projects on
own account
or as
consulting
Projects Forestry
• Insetting
•CH projects
•Off4Firms
• Investment
portfolio
footprints
•Webshops
•Credit card
Climate
Solutions
New Carbon
Market
Consulting
4
• EU ETS as huge uncertainty for businesses
• Voluntary action in light of lack of political
commitment for climate change
• Opportunities for businesses
Contents
5
Historically low EUA prices due to 1) lack of ambition, 2)
competing EU policy measures and 3) economic downturn
«need for coordination between various climate and energy policies»
(Caisse des Depôts climate research)
* E.g. the “Energy Efficiency Directive” was adopted on 25.10.2012 when the EU ETS targets until 2020 were since long defined
Source: EUA/CER Prices: Thomson Reuters Point Carbon 22.03.2013; Caisse des Depôts climate research Nr. 18, September 2012
CER price
EUA and CER prices
in EUR/t
1.65
2.50
5.00
-0.15
Required
emission
reduction
by EU
ETS
Economic
downturn
!!!
1.00
Com-
peting EU
policy
measures
!!!*
Kyoto
credits
ERUs &
CERs
(planned)
Emission
reduction
from EU
ETS
(planned)
Emission reduction from EU ETS sectors
in Gt 2008-2020
EUA prices
6
Climate goals can only be reached with carbon costs of USD 60
per ton globally from 2030 onwards
Source: McKinsey Global Energy Perspective
Where polluters pay …
Where polluters pay …
Where polluters pay …
Where polluters pay …
Where polluters pay …
12
• EU ETS as huge uncertainty for businesses
• Voluntary action in light of lack of political
commitment for climate change
• Opportunities for businesses
Contents
13
«Voluntary» action required by investors
Carbon Disclosure Project
• Signatories: 655 institutional investors
managing USD 80 trillion (sic!) in assets
• Content: Yearly survey on 4000
companies globally on emission levels,
emission reduction targets, opportunities,
threats, responsibilities
• Output: reports by region and industry
Source: Carbon Disclosure Project
14
Voluntary action in light of lack of political
commitment for climate change
Source: Ecosystem Marketplace „State of the Voluntary Carbon Markets 2013”; South Pole Carbon
Flow of transacted VERs by offset
supplier and buyer region 2012
in million tons
South Pole connects Europe and
Australia with developing
countries through its offices in
Zurich, Bangkok, Beijing, Hanoi,
Jakarta, Johannesburg, Kampala,
Kuala Lumpur, London, Medellin,
Melbourne, Mexico City, New
Delhi, Stockholm, Sydney, Taipei
15
Prices in the voluntary market are rather stable
* Based on 1142 reported transactions with a volume of 74 million tons
Source: Ecosystem Marketplace „State of the Voluntary Carbon Markets 2013”, South Pole Carbon
Transacted volume by average price 2011/12
in millon tons of CO2 equivalent
While EUA prices fell
by about 50% from 2011 to 2012,
VER prices only went down by 5%
from USD 6.2 to 5.9 per ton
Includes 8.3 million
tons of „worthless“ Chicago
Climate Exchange credits to
North American buyers at
USD 0.1 per ton
16
In the voluntary players support “nice” emission
reduction projects
Source: Ecosystem Marketplace
„State of the Voluntary
Carbon Markets 2013”
Market share by project types 2012
in %
17
• EU ETS as huge uncertainty for businesses
• Voluntary action in light of lack of political
commitment for climate change
• Opportunities for businesses
Contents
18
Reduce own emissions, assign price on the remaining emissions
by compensating them and build-up of own customized projects
over time
Source: South Pole Group
19
Compensate company emissions while helping people on
the ground
VCS
Biomass Thailand (Video) Sport tournmanents and school support
Wind India (Video) Scholarships, econom family support
Cookstove & Water Filter Kenya Worldwide first and only project of its kind,
save water, clean indoor air for cooks (women
and children), school
GS VERs
VCS
GS VERs Wind New Caledonia Sport events organized, health-care and
medical support
VCS + SC
Hydro Indonesia (Video) Donation of sport equipments to high
schools,sport lessions, free medical treat.
Source: South Pole Group
20
Insetting is the world’s most innovative carbon offset initiative. It combines all of
the advantages of classic offsetting with all advantages of running your own
project!
Features &Benefits
• Own project in the corporates operations
• And/or related to the corporate
• High social and environmental co-benefits
• Additional income
• Additionally and permanence according to the rules of the best international
recognized carbon standards
• 3rd party verified: All emission reductions are verified by an accredited third
party (e.g. TÜV, SGS, etc.)
Insetting: Your own carbon offset project
Source: South Pole Group
21
Coop has WWF support for their own offset project in Kenya