The Emerging Markets of
Global Climate Change
Monetizing Greenhouse Gas Reductions in the United States
Lauren Kimble Blue Source
The Next 25 Minutes:
1)
Global Warming as a Global Marketplace Global Warming & Sustainability in the United States
Monetizing Greenhouse Gas Emission Greenhouse Reductions in the US
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3)
4)
Blue Source – Early Leadership
What is Global Warming?
The planetary greenhouse effect Political, economic and social implications
Global Greenhouse Gas Market
Kyoto Protocol ratified by 136 nations nations
• including all developed countries with the exception of the United States and Australia
European Union ETS began operation in January 2005 January Point Carbon predicts the global market for greenhouse gases will be worth $45 billion by 2010
Domestic GHG Market
No federal legislation on the horizon Regional and state initiatives growing
Corporate Views in the US – What is the motivation to buy?
Shareholder initiatives to assess and manage greenhouse gas risk continue to increase Sustainability leadership-triple bottom line
Social Responsibility
Economic Value
Environmental Stewardship
Natural Resources
Global Warming
Our View of the Domestic Landscape for 2005
Growing role of state/regional regulatory influence Growing proactive role of large emitters in managing risk (vs. accessing risk) Growing development of market infrastructure (inventories, protocols, registries, offsets, etc.) Focus on influence of federal policy with little federal regulatory action Developing market: linkage, convergence, diversification
What is greenhouse gas emission reduction trading?
Greenhouse gases include CO2, CH4, N2O, industrial gases Unit (metric tonne CO2 equivalent) Valuing avoidance
Cash
Certification
Emission Reductions
How to monetize ghg emission reductions in the US
Establishing a baseline
• Quantify baseline emissions and baseline scenario • Maintaining data records (pre-project) • Register and report emission reductions with multiple registries:
US DOE 1605b Voluntary Greenhouse Gas Registry California Climate Action Registry
How to monetize ghg emission reductions in the US
Marketing emission reductions
• Clear title • Third party verification • Vintage year transaction • Significant quantity
0.000404 tonnes CO2e / scf CH4
Blue Source at a glance…
GHG emission reduction supplier, aggregator, portfolio and risk mitigation tools Largest US aggregator (>150 million tonnes thru 2012) Risk mitigation instruments (Carbon Bonds, Ghg Risk Transfer, etc.) Completed largest public transactions to date Completed largest number of US transactions to date (32 million emission reductions) 7 years experience co-developing GHG emission reduction projects Many offset types, including geologic sequestration, energy conservation management, methane destruction, transportation, cogeneration and others Both Fortune 500 and small company suppliers
Contact Information
Lauren Kimble Director, Sourcing & Engineering Blue Source, LLC 48 Market Street, Suite 220 Salt Lake City, Utah 84101 lpr@ghgworks.com (801) 322-4750 www.ghgworks.com