The International Voluntary CO2 Market Current State and Prospects for the Future Casiana Fometescu...

The International Voluntary CO2 Market

Current State and Prospects for the Future

Casiana FometescuConsultant Carbon Expert

Romaniawww.carbonexpert.eu

Contents

Volumes and Average Prices

Forestry Market

Major Players

Project Types

Long Term Tendencies & Predictions

Transactions Volumes 2008 - 2013

AVERAGE PRICE

The Forestry Market

17% Volume Increase in 2013 (agriculture, REDD, land-use)

Total Volume in 2013: 32.7 MtCo2

Average REDD offset price: $ 4.2 tCO2

Beyond carbon benefits (jobs, investments in infrastructures, education, health)

Latin America – top projects supplier

Major Players

- Buyers- Sellers- Standard Organizations

What stands for these acronyms?

GS – Gold Standard

VCS – Verified Carbon Standard

CAR – Climate Action Reserve

ACR – American Carbon Standard

CCB – Climate, Community and Biodiversity Standard

SC – Social Carbon

Retirements by Standard Organization

Market Shares

Who are the Sellers?

• Project Developers• Retailers• Brokers• Government

Transacted Volumes by Seller Types

Who are the Buyers?

Offset credit retailers

Governments

Energy utilities

Multinational companies

Other sectors (finance, transport, food, events etc.)

BUYER SECTORS

Buyers Motivations

Balance between profit – climate driven

CSR – corporate social responsibility

Leadership in Industry

Production Chain Sustainability

Marketing and image

Europe – the Main Buyer

Why Europe as the main buyer?

The European Union is the main promoter for CO2 emissions reductions

The EU ETS is the main pillar of the climate change regulated policy in Europe

Much awareness among companies and people

3 European countries currently have “voluntary” legislation: Germany, France, the Netherlands

Pilot projects to be extended at the whole EU

Romania’s case

Project Types

Average Price by Project Type

Tendencies on Long Term:

Standards collaboration – shared expertise

Collective management of the projects

Less profit

More climate change driven motivations

Co-benefits beyond carbon

Tendencies on Long Term

Rise of CSR in companies/corporations

Zero CO2 or emissions – brand for companies

Shift of the voluntary market to regulated market. Ex. California, predicted for the EU

New buyer sector: Government & Public Institutions

Rise of End-buyers: individuals

Predictions for the future

Most estimations see a long term price increase together with increase in trading volumes

Market value predicted for 2020: 1.8 billion USD (based on historical average price $5.9 tCo2)

Volume estimated to 300 MtCO2e in 2020

Reduced projects’ pipeline in the next 5 yeas

Future Trends

Thank you for your attention and take a lead into your industry!

Casiana FometescuCO2 Consultant, Carbon

Expert

casiana@carbonexpert.roSkype: casianairina

www.carbonexpert.eu