Exec Sum
Between 1998 and 2018 UNFCC & associated countries have developed 3 market based emission reduction schemes to help obligated countries and companies to reach their emission reduction targets, initially agreed under the Kyoto protocol.
- EUETS : European emission cap & trade system under which obligated companies & countries can trade their emission rights.
- CDM : clean development mechanism, which is a project based scheme to issue certified emission reduction (CER) that can then be used by obligated countries/ companies to fulfill their obligations
- JI : joint implementation : cooperation between countries to reach their targets.
CDM report 2018
- 7800 projects
- 140 countries involved
- offsetting 2Gt CO2eq cumulated 😓
Voluntary Offset programs :
- the absolute largest offset program is close to 2000 projects for approx 1Gt CO2e (1 gigatonne = 10^9 tonnes) registered, 2nd one : 200 millions T CO2e
- average exchange price today is 20€/T (to be verified)
- Because voluntary offset credits cannot be used in compliance markets, they tend to be cheaper
- Concerns About How Carbon Offset Credits are Used : a “permit to pollute” instead of effective regulation
- To develop a new offset program :
- underlying (ad-based carbon offset) is different enough from any other offset program to justify to develop (or co-develop) a new methodology
- ideally designed to be approved by the highest standards to establish creditibility & value : VCS / Verra? CDM/ UNFCC?