The Re Return rn of Ca Carbon n Fin inance ce for r Re - PowerPoint PPT Presentation

multiconsultgroup.com The Re Return rn of Ca Carbon n Fin inance ce for r Re Renewa wable ble Energy gy Project cts: s: When? What? How? Really? William Greene Senior Advisor - RE wig@multiconsult.no

multiconsultgroup.com multiconsult.no

multiconsultgroup.com Multiconsult ASA: full service engineering & technical consultancy Operating revenues 2.968 MNOK (2016)  Founded 1908 (listed 2015, OSL:MULTI)  Headquarters Oslo, Norway  Employees 2.450  • Permanent presence through subsidiary • JVs to support Energy and Oil & Gas projects Sales offices

multiconsultgroup.com multiconsultgroup.com Carbon finance: extra revenues to project owners where projects produce «additional» GHG reductions Project Developer Covered Emitter Offset credits (tCO2e) $/€/ ¥ DEMAND SUPPLY 4

multiconsultgroup.com That’s had its share of ups and downs … CER Futures Price (ICE) 16 14 12 10 € /T 8 6 4 € 0.22/tCO2e 2 0

multiconsultgroup.com And now promises a rebound… S Korea KOCs - China CCERs - 55Mt p/a? 400Mt p/a? Japan JCM – 50Mt p/a? + CORSIA (2021+) – 100 Mt p/a? + New Mechanisms under Paris Agreement (2020+) - ? Source: IETA, 2017

multiconsultgroup.com But what have we learned? # CDM projects CER supply 2013 to 2020, (Mt CO2e) 2 % 7 % 13 % 20 % 73 % 85 % Likelihood of being real, measurable, additional Low Medium High Low Medium High Potential CER supply To 2020, Mt CO 2 e Low: 3527 Medium: 943 High: 359 Hydro Wind Fossil fuel Waste heat Efficient Cook HFC-23 Coal mine Biomass HFC-23 power power switch recovery lighting stoves Adipic acid abatement methane Landfill gas power abatement Nitric acid 1669 1397 232 222 4 2 257 191 170 163 162 184 175 Multiconsult & OEKO institute, 2016

multiconsultgroup.com Do we need this complexity? 2.1 Host Country 1. Project Design Approval Project Concept Note, Letter of Approval Methodology, Stakeholder 3. Registration Consultation, Project Design 2.2 Validation Document (PDD) Validation Report, PDD Designated CDM Project Developer Project Developer Operational Entity 1 Executive Board 6. Certification and 4. Monitoring 5. Verification Issuance of Credits 7. Commercialization Monitoring Report Verification Report CER Designated CDM Project Developer Credit Buyer Project Developer Operational Entity 2 Executive Board

multiconsultgroup.com multiconsultgroup.com «We are what we do. And what we do is what we become.» William Greene wig @multiconsult.no

multiconsultgroup.com multiconsultgroup.com Status of the industry 2017 5000+ projects. 1.75 bn+ tCO2e reductions (?) 规则 の基本コン セプト 10

multiconsultgroup.com All RE projects have suspect additionality SLIDE Oeko Institute & Carbon Limits, 2016