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By continuing to read this document you agree to the terms of this Disclaimer. TLR Energy will consult and facilitate your projects and credit issuances. Carbon Offsets represent the act of reducing or the act of avoiding green house gas emissions. Companies that are able to reduce their emissions below a business as usual baseline may be able to generate Voluntary Emission Reductions (VER's) that can then be sold. Carbon Offsets that have a story element or have substantial co-benefits are valued at a premium, as well as VER's that are verified against the most stringent voluntary carbon standard using the most reputable verifier. The premium is based on the likely-hood of there being a use in a future U.S. compliance market for the credit and whether it stands a chance of being resold at a higher price. There are generally two types of Offsets; SEQUESTRATION- pulling carbon out of the atmosphere and store it in sinks EMISSION REDUCTIONS-either reduces or destroys green house gases in ways such as Fuel Switching, Efficiency, Renewable Energy, Industrial Gas Destruction, Flaring Agricultural or Landfill Gas. The economic advantages of Offsets include taking advantage of the varied costs of achieving emissions reductions by activity and geography. Companies can buy Offsets for compliance providing a most cost effective options to meet their imposed Cap. This creates liquidity and possible economic relief. Offsets help promote innovation for new low carbon technologies, job creation, improved air quality, wealth creation, infrastructure development, increased awareness of climate change and sensitivity to the planet,and build support for public policy and the necessities of long term planning into the public dialogue. -There are "Primary trades"; these involve the offset project that reduces emissions in the first place. The contract establishing this trade is the Voluntary Emission Reduction Purchase Agreement (VERPA),these are generally long-term forward contracts, with quarterly or annual delivery obligations. VERPAs will likely continue to be bilaterally negotiated and customized in order to fit and highlight the terms and uniqueness of each project. -There are also "Secondary trades"; these involve allowances or credits that have already been issued. (In the EU ETS these trades are documented by a Master Agreement) It is important to note that Offsets should have the following characteristics: OFFSETS should represent emission reductions that have occurred. Each offset represents the equivalent of one metric ton of carbon dioxide emissions reduction. OFFSETS should be "additional". Offsets must go beyond business as usual. OFFSETS must be permanent and have guarantees. In order to prevent double counting they should be retired once sold and the benefits and claims are directly assigned to the buyer. OFFSETS should be verifiable; precisely measured, tracked and recorded -VER's must be verified by a reputable third party against a reliable standard. There exist over ten Carbon Standards for the Voluntary market; The more widely used are the Voluntary carbon Standard and the California Climate Action Registry. -There exists Electronic Registries to demonstrate that a VER has been issued and confirms if it is transferred or retired, this assists in preventing double counting and adds transparency. Given the vagueness on which kinds of projects will be eligible under future mandatory schemes, the VER's will need to be from the highest quality projects in order to minimize the risk that some types of credits will not be eligible for future Cap and Trade schemes. -VER sellers may include farmers that seek to control animal methane emissions or switch tilling practices, landfills that capture and destroy gas emissions, forestry companies or land owners that agree to protect, or replant forests, industrial facilities that have improved their efficiencies enough that they significantly reduce emissions, companies that commit to fuel switching to renewable sources of energy, or miners that flare or sequestrate their carbon dioxide. -VER buyers include aggregators, wholesalers, and carbon funds that are buying carbon because they perceive value, and anticipate that it will increase in value, and may be used for compliance purposes under a mandatory U.S. regime. Endusers that have adopted carbon neutral pledges or goals to reduce their emissions,or create brand image, or familiarize their management in anticipation of mandatory legislation in their sector, promotes corporate responsibility and consumer accountability for their carbon footprint, and bypasses government bureaucracy waiting for a national mandate. THE CLEAN DEVELOPMENT MECHANISM (CDM) is a project based mechanism under the KYOTO PROTOCOL that allows industrial countries to pay for projects that reduce green house gases in poorer countries, and then provide certified emission reductions. The goal is to assist developing countries in achieving a sustainable future and to assist developed countries in achieving their emission limitations under the Kyoto Protocol. The CDM is cost effective and offers flexibility to industrialized countries who are trying to meet their Kyoto targets. The aim is for companies to achieve reductions at the least possible cost, and the recipient receives investment and transfer of technology allowing production operation more efficiently. CDM's also help resolve the problem that exists for conditions of justice, in that developing countries may pay more for climate change than developed, recognizing the right of development usually equates to CO2 emissions. ________ There are SIX major Green House Gases defined by the Kyoto Protocol ............................................... Global Warming Potential Carbon Dioxide (CO2) ................................... 1 Methane (CH4)............................................ 21 Nitrous Oxide (N2O).................................... 310 Hydrofluorocarbons (HFC's)............... 140-11,700 Hydrchorofluorocarbons (HCFCs)...... Perfluorocarbons (PFCs).................... 6,500-9,200 Sulfur Hexafluoride (SF6)......................... 23,900 Only 1/3 of voluntary offsets credits are created in the U.S.; the remaining amount is from CDM projects that did not qualify or had been generated while waiting for approval in the registration process. The value of global voluntary markets tripled from 06-07; 96.7 million to 330.8 million and 63 billion for compliance markets in 2007. A COMPREHENSIVE ENERGY POLICY and final Carbon Bill should enhance safeguards for the environment while minimizing economic harm, protects and creates jobs, while avoiding a trade war, promote investment in new technologies to change how we use and produce energy and encourage a wider deployment of existing technologies. A strong bill will provide reduced green house gases, with set achievable targets that are economically viable; providing immediate major investments in new energy technology. This must be enacted with assurances of continued fresh analysis, in order to provide confidence that any weaknesses will be rectified. Governments worldwide need to adopt policies of sustainability in their planning and greater efforts of efficiency in their infrastructure and energy use. Policy makers need to discourage the consumption of nonrenewable resources,and encourage a reduction in human fertility. RENEWABLE ENERGY CERTIFICATES (RECs) are a popular method of supporting renewable energy and meeting desired goals of sustainability, environmental protection, and green house gas reduction. A REC attests to the production of 1 Megawatt hour of environmentally preferable electricity from an eligible renewable energy source; such as SUN, WIND, WATER and BIO-ENERGY. Anyone can buy a REC to support clean renewable energy and reduce their environmental footprint. RECs support domestic energy sources helping to reduce the countries energy security and national security. Certification and verification stndards ensures environmental integrity and guarantees the delivery of the promised benefits.RECs can be blended to suit the client with a percentage derived from WIND, BIOMASS etc.-REC clients are from the business sector,colleges and universities, government, and event off-setters. |
