Canadian Carbon Market : Certification process and Application for farm-based biogas systems

Presented by

Mahaut R.-RigaultVice-president Ventix Environment

Christian PerronCoordinator Energium GHG

Agrienergy Producers’ Association of OntarioJune 18th, 2008

Presentation plan

• What are GHG?

• What are Canada’s obligations in regards to the Kyoto Protocol and GHG emission reductions?

• Where Canada stands internationally?

• Where does the agriculture sector stand in Canada?

• What tools are available in order to take advantage of the opportunity that represents Carbon assets?

• What other associations and their members do to get the maximum benefits from GHG emission reductions?

First : Who are we?

Ventix Environment :

Brokerage firm in environmental solutions – The first in Canada

Organization Y Ventix Experts in environmental solutions (FREE SERVICES FOR Y)

Energium GHG :Experts in implementation and quantification of GHG emission reduction projects as well as in aggregation of verified emission reductions.

Energium GHG Ventix Organization Y

ADVANTAGES FOR THE CLIENT

Competitive turnkey solutions in regards to energy efficiency and integrated managing processes of Carbon assets

Associations

What are GHG?

• GHG are gases that enhance Global warming and consequently affect Climate change

– 1 metric Ton of CO2 is equivalent to a 30ft X 30ft X 30ft cube (10m X 10m X 10m)

– Canada has emitted 721 Megatons of CO2e in 2006! That is 20 T per capita

Source EPA

What are GHG?

• GHG are, according to Canada’s GHG inventory:

– Carbon dioxyde (CO2)– Methane (CH4) – 1 Ton of CH4 = 21 Tons of CO2equivalent

– Nitrous Oxyde (N2O) – 1 Ton of N2O = 310 Tons of CO2equivalent

– Sulfur hexafluoride (SF6)– Perfluorocarbons (PFCS)– Hydrofluorocarbons (HFCS)

As a signatory to the UNFCCC, Canada is obliged to submit an inventory of its GHG emissions on an annual basis.

Canada is obliged to reduce emissions to a level of 6% below 1990 levels in the period of 2008-2012

Where does the agrienergy sector stand in Canada?

Agriculture Sector (E.C. source)

• In the agriculture sector, the expansion of the beef cattle, swine and poultry industries, along with increases in the application of synthetic nitrogen fertilizer in the Prairies, resulted in a long-term greenhouse gas emission growth of 12.4 Mt. This 25% increase for the agriculture sector contributed the equivalent of 8.6% to the overall national increase.

What tools are available?

• Montreal Climate Exchange (MCeX)– Offset market

• United Nation Environment Program (UNEP)– A guide to emission trading

• International Emissions Trading Association (IETA)– Certified Emission Reduction (CER)– Verified Emission Reduction (VER)

• Canadian Standard Association Climate Change

(CSA CC)– CAN/CSA ISO 14064 Green House Gases

At the end of each compliance year, the emissions of the large regulated industrial emitters will be verified. Each emitters must then offset its GHG emissions against its intensity-based GHG emissions reduction target established by the government. The discrepancy between the imposed target and the actual emissions reduction may be offset by, among other things, the purchase of units on the domestic market. The initial compliance year is 2010.

y

Agriculture – Starting 01.01.09

With baseline at 2006

Regulated emitters

And

Offset credits

t

PurchaserPurchaser

Expensive mechanisms

Expensive mechanisms

Big projectsBig projects

Certified Emission Reduction

CER

Certified Emission Reduction

CER

Small projects???????????????Small projects???????????????

Free marketFree market

Value depends on the sturdiness of the proof and verification process

Value depends on the sturdiness of the proof and verification process

Big projectsBig projects

Verified Emission Reduction

VER

Verified Emission Reduction

VER

Small projects???????????????Small projects???????????????

arCanadian Standards Association Climate Change CSA CC

Accepted by over 160 countries

Easier process

Available even for small projects

p

Forestry Engeenering Research Institute of Canada FERIC

Technology partnership

Canadian Standards Association Climate Change CSA CC

Innovation Maritime, Centre de recherche de Rimouski

Validation Commitee & Technology Centers

AMETVSAMETVS

CQVBCQVB OLEOTEKOLEOTEK

CGERCGER CNRCCNRC

CRIQCRIQ

CTACTA

ITAQITAQ

ACQACQ

Authorized Registration Agents

Energium business case?

The 7 step Procedure

1- Registration

2- Evaluation2- Evaluation

3- 3- QuantificationQuantification4- Verification4- Verification

5- Serialization5- Serialization

6- Aggregation6- Aggregation

7- Trading7- Trading

Advantages

Quantification of every possible assets

Guidance for improvement Make your efforts profitable (payback)

Cash money Return

ISO 14064 Standardized Programs

Environmental certification

Evaluation of your energy efficiency

Management of your new financial assets

The Canadian CO2e Market

• Complexe structure with a lot of uncertainties in regards of the regulations

• Ventix and Energium can help by :– Quantifying and aggregating your carbon assets– Insuring that your carbon assets give you and your

association more benefits and return on investments

Thank you!