Carbon Credit BusinessThe Global Direction: Marketplace

and PotentialFacilitator: Dr. Paul Abolo

Carbon Credit BusinessThe Global Direction: Marketplace and Potential

Marketplace

Global Direction

Potential

Carbon Credit BusinessThe Concept of Carbon Trading Based on recognition that developed countries are

principally responsible for high levels of carbon emission.Due to 150 years of industry activities

Heavier burden on developed nations through 

Annex 1 Parties (mostly developed countries) have emissions limitations

Non-Annex 1 Parties (developing countries) have no emissions limitation

 

The Global Marketplace

Compliance Market (CM) – Annex 1 Parties

Voluntary Market (VM) – Non-Annex 1 Parties

Global Carbon Marketplace II

The Compliance Market Mandatory limitations to how much GHG they can

emit. Any excess would need to be bought from somewhere.

Any surplus can be sold to those who exceed the quota.

The Voluntary Market No mandatory limitations on how much GHG they can

emit They create programs and methods to reduce their emission

from what it used to be and sell it to the those in the CM who are unable to keep to their mandatory limitations

Voluntary MarketplaceHow do we create the commodity? Clean Development Mechanism (CDM)

The platform provided by the policy (KP) and United Nations Framework Convention on Climate Change (UNFCCC), in countries like Nigeria; to participate in this trade at a global level.  

Avenue for generating carbon credits through Renewable Energy advocacy, promotion, education and

solutions

Adaptation of sustainable development practices such as solar technologies, energy efficient lighting, biofuels for transport, cooking, BRT, etc.

Global Direction

Global Direction &Trend I Shift in investor-focus

Citigroup’s $50 billion green initiative and a commitment of $10 billion to reducing their own carbon footprints in its 14,500 offices worldwide

Investment of $31 billion over the next 10 years in “wind farms, biofuels, solar panels and other eco-friendly technologies by Citigroup

Introduction of the worldwide Dow Jones Sustainability Group Index (DJSGI).

Joint capitalization of 4.4 trillion US dollars. The lists of financial institutions that are licensed by DJSGI include Vereinsbank, Gerling, Nikki, ING, Rabobank, Westpac and Union Investment.

Global Direction &Trend II

Google invested over US$1billion in wind and solar energy to gain attractive financial returns; generating over 2GW of electricity each year.

Recently invested US$94 million in large-scale solar photovoltaic projects in California.

DuPont saved $3billion by drastically reducing greenhouse emission and associated energy use.

Global Direction &Trend III

GE saved $12.8 million by upgrading lighting in their plants from the regular lighting devices to the high efficiency lights in their plants.

Ford Motor Company reduced their carbon emission by 15% by eliminating energy-intensive drying equipment.Saved another 20% in drying time

Potentials

Pioneer statusBelong to elitist group of

EnvironmentalistsEngage before Nigeria becomes a

Compliance MarketEngage the future now – ahead of the

curve

Business OpportunityLow-entry barrier now

Potentials II

Creating a just worldTo contribute to humanity / make

impact The essence of your professional life? Save lives – clean environment

Reduce Lung CancerReduce Hearing ImpairmentReduce Accidental Deaths, etc.Reduce Joblessness

Potentials III

Global Environmental PoliciesAt the UN Climate Summit in September 2014,

there were pledges to raise over $200 billion by 2015 for climate change, through Green Bonds and shifting assets to clean energy.

Additionally allocate over $18 billion to developing countries between 2014 and 2020 for mitigation and adaptation

Creation of $30 trillion climate risk investment framework is in the pipeline.

The Future

The Future - NigeriaPotential to inject $1.25 billion into the Nigeria

economy from sales of carbon credit$18 billion in investments from implementation of

clean energy technologyN34.4 Billion / year from Deforestation AvoidanceChallenges turned to potentials:

Poor National Power Generation – Provide generationPrivate Power Generation - Provide AlternativePoorly managed waste – used to generate powerPoverty

Reflections?

Hmmmm………..

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