Benefit from carbon trading – by 31 December 2012

The Carbon Development Mechanism (CDM) is widely regarded to be the most significant outcome from the Kyoto Protocol, but is intrinsically linked with carbon credit and finance. CDM depends on the regulatory and legal framework that is generated by the Protocol. Companies in the EU Emissions Trading System (ETS) will continue to demand carbon credits generated by CDM projects after 2012. But all indications are that the ETS rules will change to restrict eligibility for new projects to only those in least developed countries from 2013. Projects that are not submitted for registration to the United Nations Framework Convention on Climate Change (UNFCCC) by 31 December 2012 cannot sell their emission reductions into the EU ETS.

A number of carbon schemes can be used to provide finance for energy efficiency initiatives. There is still opportunity to benefit from carbon trading mechanisms in the foreseeable future. If you do not make the 2012 deadline then you will miss this opportunity.

 

Take note

  • Burning fossil fuel liberates CO2, so saving energy is critical.
  • Carbon schemes can be used to fund energy efficiency initiatives.
  • The key is to reduce the amount of CO2 produced.

 

Published as:

Securing carbon finance to promote energy efficiency

By C Terblanche, CDM Africa Climate Solutions

Electricity+Control, July 2011 (pgs 54 - 55)