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U.S., Brazilian and Indonesian Governors Urge Their Presidents to Include Forest Protection in Climate Change Policies
LOS ANGELES, Oct. 2 /PRNewswire-USNewswire/ -- California Governor Arnold Schwarzenegger and 10 other governors from the United States, Brazil and Indonesia are sending a letter to U.S. President Barack Obama, Brazilian President Luiz Inacio Lula da Silva, and Indonesian President Susilo Bambang Yudhoyono urging them to include forest protection in international and national climate change policies, according to Reuters (http://www.reuters.com/article/newsOne/idUSTRE5910GJ20091002).
The state governors represent California, Illinois, Wisconsin in the United States; Acre, Amapa, Amazonas, Mato Grosso and Para in Brazil; and Aceh, East Kalimantan and Papua in Indonesia. They signed the letter during the Governors' Global Climate Summit 2 taking place in Los Angeles.
"It is a vital sign of leadership that California -- which has the world's seventh largest economy -- and states with half of the world's remaining tropical forests have joined forces to make living forests worth more than dead ones," said Steve Schwartzman, director of tropical forest policy at Environmental Defense Fund. "Including forests in U.S. emissions control efforts will help achieve greater overall reductions at lower costs than would be possible without it."
The 11 states agreed on basic principles to allow reduced deforestation and degradation (REDD) to be used in the United States to meet targets for reducing global warming gas emissions. The principles establish a template for what may become the first compliance-grade REDD assets. The Waxman-Markey climate bill passed by the U.S. House of Representatives in June includes provisions for the use of REDD in a national carbon market.
"REDD is one of the key issues on the agenda at the United Nations Climate Conference in Copenhagen in December," concluded Schwartzman. "Many countries participating in the negotiations intend to agree on REDD policies, which could help developed and developing countries break the logjam holding up progress in the broader negotiation."
Deforestation accounts for 15-20 percent of global greenhouse gas emissions, so forest preservation is vital in combating climate change. California and representatives from Brazil and Indonesia signed memos of understanding at last year's global climate summit. The memos called for using REDD strategies and projects that could help meet national and global emissions reductions goals, while sustaining local communities.
About Environmental Defense Fund
A leading national nonprofit organization, Environmental Defense Fund represents more than 700,000 members. Since 1967, Environmental Defense Fund has linked science, economics, law and innovative private-sector partnerships to create breakthrough solutions to the most serious environmental problems. For more information, visit www.edf.org. Contacts: Lori Sinsley, (415) 308-6970 (m), lsinsley@edf.org Stephan Schwartzman, (202) 746-9201 (m), sschwartzman@edf.org
SOURCE Environmental Defense Fund
Carbon

+7 9 votes
ANALYSIS - Carbon firm highlights risk, appetite of forest credits
by Reuters News on 11 September 2009, 10:41 AM 2 comments , 1668 views Categories: Most Discussed, Analysis, Reuters News
* Firm hopes to sell A$1.6 billion in forest credits
* But market for such carbon credits small and uncertain
* Analysts point to delivery risk from forest carbon projects
By David Fogarty, Climate Change Correspondent, Asia
SINGAPORE, Sept 11 (Reuters) - An Australian firm hoping to broker A$1.6 billion in carbon credit sales from saving tropical forests highlights the promise and peril of a U.N.-backed scheme that rewards projects for curbing deforestation.
Carbon Planet, in presentations to investors, says it has contracted 100 million carbon offsets over five years from projects in Papua New Guinea and 60 million over five years from Indonesia at an average of A$10 ($8.5) each offset, or credit.
That equates to 160 million tonnes of carbon dioxide saved from being emitted by keeping the forests standing.
None of the 25 projects in PNG and 8 in Indonesia have yielded credits although the company, a carbon services provider, hopes credits will start to flow soon and says it has buyers.
But brokers and analysts say there is no appetite currently for that volume of "avoided deforestation" credits on the global voluntary carbon market, which is driven by demand from corporates wanting to offset their carbon emissions.
Demand worth potentially billions of dollars annually would only come from future national emissions trading schemes such as in the United States and Australia and an eventual global scheme backed by the United Nations, called reduced emissions from deforestation and degradation (REDD).
Analysts say giving large credit flow forecasts from REDD projects before they are audited or validated is fraught with risk if projects do not yield as many credits as forecast.
In addition, REDD's final design has not been decided by the U.N., it is unclear how the scheme will be included in national schemes or if early REDD projects will be included in the U.N. framework.
"People are contracting REDD as though it's on the verge of becoming a compliance market," said Martijn Wilder, head of Baker & McKenzie's global climate change and emissions trading practice, referring to markets that would allow REDD credits to meet mandatory emissions curbs in rich nations.
The United Nations hopes REDD will be included in a broader climate pact the world body wants to be agreed in December during a major meeting in Copenhagen. The idea is for a global REDD credit market to formally begin in 2013.
"We are using much more conservative figures when we are talking to our investors," said Darius Sarshar from New Forests, which is developing a large REDD project in Papua, Indonesia.
In Indonesia, there are an estimated 20 projects at various stages of development, the World Bank says.
"However, such engagement remains speculative, extremely expensive and has numerous challenges," said Wilder.
COMPLEXITY
This is particularly the case given the early stage of development of REDD and the complexity and time needed to develop REDD projects in developing countries.
"In terms of the forecast market demand of voluntary credits, it is by no way even up to the volumes that I've seen promoted as imminent from REDD projects," said Chris Halliwell, a senior emissions broker for TFS Green in Melbourne, Australia.
"There seems to be a mark-to-market valuation but not really supply and demand analysis."
REDD holds the promise of unlocking billions of dollars in annual revenue to developing nations from carbon offset sales to wealthy countries.
The scheme is designed to curb deforestation and restore the world's tropical forests so they can soak up growing amounts of planet-warming carbon dioxide from burning fossil fuels.
But REDD projects must provide funds for local communities, prove they are designed to address local causes of deforestation, ensure they are long-term and be able to accurately calculate how much carbon the forest will lock away over several decades.
Such complex calculations take time. Proving who actually owns the carbon stock in a given area is also crucial.
Carbon Planet's projections seem daring if only because the entire value of the world's voluntary carbon market was US$705 million in 2008, up from US$335 million in 2007, according to "State of the Voluntary Carbon Markets 2009" by Ecosystem Marketplace and analysts New Carbon Finance.
Of this, global sales of "avoided deforestation" credits were just one percent of turnover.
Carbon Planet Founder Dave Sag told Reuters the A$600 million in revenues over five years from Indonesia was "based on a very conservative estimated yield of 12 million tonnes per annum".
"I understand that people have concerns about our projections. Anyone would given the scale of them. But the numbers to us do not seem unrealistic."
TOUGH STANDARDS
Sag said the projects would meet tough yardsticks -- such as the respected Voluntary Carbon Standard (VCS) and Climate, Community and Biodiversity Project Design Standards -- and the firm was looking more to future compliance markets.
"That's why we are busting a gut to make sure that these projects are produced properly."
But large markets that will accept large volumes of REDD credits are several years away. And many developing nations have yet to develop rules governing REDD, adding to uncertainty.
Another REDD project developer in Indonesia said it was crucial to prove to investors that protecting an area of forest actually curbs deforestation and therefore emissions.
"You are basically doing projects and drafting legal agreements in the absence of any rules," said Wilder.
"From our point of view, doing a REDD project is similar to other long-term infrastructure projects in the sense that the legal foundations have to be beyond reproach," he added.
Sag says REDD credits will soon start to flow from its projects, starting later this year with 10 million VCS-standard credits from Kamula Doso rainforest in Papua New Guinea.
The company has signed a deal with a firm called Nupan, which represents the 52 land-owner groups in the 800,000 ha (2 million acres) reserve who are the legal owners of the "carbon stock".
He denies Carbon Planet is playing fast and loose with its projections, saying investors want to know the numbers.
"I am the confident the credits will start walking out the door pretty soon. We have buyers lined up."
(Additional reporting by Sunanda Creagh in JAKARTA; Editing by Michael Urquhart) ((david.fogarty@thomsonreuters.com; +65 6403 5662; Reuters Messaging: david.fogarty.reuters.com@reuters.net))
Keywords: CARBON FORESTS/DEMAND

Carbon

+1 1 vote
FACTBOX-Climate change costs, offers to pay
by Reuters News on 07 October 2009, 17:49 PM 0 comments , 6 views Categories: Reuters News
(Updates World Bank and IEA estimates)
Oct 7 (Reuters) - Countries are deadlocked on how to share the cost of fighting climate change in U.N.-led talks meant to agree a new climate pact in Copenhagen in December.
Delegates from about 180 countries are meeting in Bangkok to try and drive momentum towards a deal. [ID:nSP457708]
Climate costs are calculated as the money needed to cut greenhouse gas emissions and also prepare for more droughts and floods -- called "mitigation" and "adaptation" respectively.
Mexico reiterated on Wednesday its plan for a global fund, with individual donations calculated according to countries' wealth and contribution to global warming. [ID:nSP388133]
Estimates follow of the size of funds needed, proposals on how to raise these, and offers so far.
HOW MUCH MONEY NEEDED
1. Mitigation
* $525 billion per year extra energy investment 2010-2030 for tough carbon cuts -- International Energy Agency
* that total would be reduced to $95 billion per year after including fuel savings -- IEA [ID:nL6231420]
* 530-810 billion euros ($778-1,189 billion) per year extra investment 2020-2030 -- McKinsey
2. Adaptation
* $100-150 billion per year by 2030 globally for early weather warnings, flood prevention, irrigation -- International Institute for Environment and Development
* $75-100 billion per year from 2010-2050 -- World Bank
3. How much rich should pay developing countries
* 100 billion euros ($147 billion) per year by 2020 -- European Commission [ID:nLA157955]
* $140 billion per year by 2020 -- Greenpeace
PROPOSALS ON HOW TO RAISE MONEY
1. Norwegian proposal
* Set quotas of greenhouse gas emissions permits for rich nations for 2013-2020 of which 2 percent would be sold to them to raise funds
* Could raise $15-25 billion per year
2. Mexican proposal
* Raise an international fund from all nations, based on their responsibility for causing climate change, national wealth and population
* Could initially raise $10 billion per year
3. European Commission proposal
* Expansion of carbon markets whereby rich countries earn rights to pollute by paying for emissions cuts in the South
* Could raise up to 38 billion euros per year
4. Least Developed Countries' proposal -- Levy on international jet and shipping fuels.
* Could raise $28 billion per year
CLIMATE FUNDS ALREADY ON THE TABLE 1. Germany -- Is raising about 120 million euros per year in climate funds for developing countries from selling pollution permits to industry
2. Global adaptation fund -- Raised from a 2 percent levy on the global carbon market. Valued at just 83 million euros so far
3. World Bank's climate investment funds for developing nations -- pledges of over $6.1 billion from rich countries
4. Norway funds to slow deforestation -- Will provide up to 3 billion crowns ($510 million) a year to combat deforestation. Has committed 700 million ($119 million) to an Amazon fund -- For Reuters latest environment blogs click on: http://blogs.reuters.com/environment/ ((For a TAKE A LOOK on the politics, economics and markets of climate change click on [nCLIMATE])) (Reporting by Gerard Wynn) ((gerard.wynn@reuters.com; +44 207 542 2302))
Keywords: CLIMATE/COSTS
Carbon

0 0 votes
RPT-U.S. energy bill needs carbon cap-Obama aide
by Reuters News on 07 October 2009, 19:24 PM 0 comments , 3 views Categories: Reuters News
(Repeats to fix typo in headline)
* White House's Browner urges cap-and-trade system
* US must do more than just support renewable energy
* Will "manage in Copenhagen" if no energy bill finalized
By Ayesha Rascoe
WASHINGTON, Oct 7 (Reuters) - It would be a "big mistake" for the U.S. Congress to approve an energy bill this year without placing a cap on greenhouse emissions, the White House's top climate and energy adviser said on Wednesday.
"We think that would be a big mistake," Carol Browner told business leaders at a clean energy forum. "I think you have to keep these programs coordinated because they do impact with each other."
With climate change legislation facing a tough road to passage in the Senate, some lawmakers have suggested the chamber should instead focus on moving less controversial legislation that would just support renewable energy.
Both the House and Senate bills center around a cap-and-trade system that limits carbon emissions. Companies would need permits for every ton of carbon pollution they release into the atmosphere. Utilities and factories that don't use all their permits could trade, or sell them, to companies that need more. [ID:nCLIMATE]
Browner played down the significance of having a climate change bill approved by both chambers and signed into law before international climate negotiations begin in Copenhagen in December to try to hammer out an agreement to replace the 1997 Kyoto protocol on fighting climate change.
"We will manage in Copenhagen wherever we are in the process," Browner said.
The House passed legislation earlier this year that would limit greenhouse emissions by requiring companies to acquire permits for the carbon dioxide they release into the atmosphere. [ID:nN26325128]
After several delays, Senators John Kerry and Barbara Boxer last week unveiled their climate bill that calls for a 20 percent reduction in smokestack emissions by 2020 from 2005 levels. [ID:nN30212120]
Senate Majority Leader Harry Reid has said he hopes to combine the climate bill with a comprehensive energy package approved by the Senate Energy and Natural Resources committee earlier this year.
But some moderate Senate Democrats have said they would prefer to simply pass the energy package, which would require utilities to generate more electricity from renewable sources and allow more oil and gas drilling off Florida's Gulf coast.
Any climate legislation in the Senate likely faces an uphill battle, as lawmakers from heavy industrial states in both parties have raised concerns about burdening companies with additional energy costs.
Lawmakers must also contend with a crowded legislative calendar, that also includes healthcare and financial reform.
(Editing by Lisa Shumaker) ((ayesha.rascoe@thomsonreuters.com; +1 202 310 5683; Reuters Messaging: ayesha.rascoe.reuters.com@reuters.net)) ((For help: Click "Contact Us" in your desk top, click here [HELP] or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546)) Keywords: USA CLIMATE/ENERGY
Carbon CalendarTM - Regulatory
28 September - 9 October 2009
7th Session of the Ad Hoc Working Group on Long-Term Cooperative Action and 9th Session of the Ad Hoc Working Group on Further Commitments for Annex I Parties to the Protocol.
Official negotiations on the implementation of the Bali roadmap and the development of a post-2012 system.
Bangkok, Thailand
5 October 2009
U.S. Senate Environment & Public Works Committee holds hearings on proposed cap-and-trade bill.
The EPW is expected to hold hearings all week into proposed cap-and-trade legislation.
Washington, D.C.
6 October 2009
European Parliament considers carbon leakage regulations.
The Parliament's environment committee will consider the Commission's draft list of those sectors vulnerable to carbon leakage as proposed by the European Commission.
Brussels, Belgium
7 October 2009
California AB 32 cap-and-trade meeting.
The Economic and Allocation Advisory Committee meets to discuss allocation of allowances in a state-wide cap-and-trade scheme.
San Francisco, USA
7-9 October 2009
ICAO meeting on aviation and climate change
The meeting will review the Programme of Action recommended by the Group on International Aviation and Climate Change (GIACC) for action by the aviation sector on climate change.
Montreal, Canada
10 October 2009
EU Working Party on International Environment Issues (WPIEI) meeting on climate change.
Meeting to discuss the outcome of the UNFCCC negotiations in Bangkok.
Bangkok, Thailand
11-12 October 2009
Seventh meeting of the Enforcement Branch of the UNFCCC Compliance Committee
Bangkok, Thailand
12 October 2009
Seventh meeting of the Facilitative Branch of the UNFCCC Compliance Committee
Bangkok, Thailand
12 October 2009
U.S. Senate starts "mark-up" of proposed climate legislation.
The Environment & Public Works Committee and other lead committees are scheduled to start "mark-up" of proposed c limate legislation this week.
Washington, D.C.
13 October 2009
Sixth Meeting of the Plenary of the UNFCCC Compliance Committee
Bangkok, Thailand
14-15 October 2009
International Energy Agency ministerial Meeting
The meeting will discuss global energy and environmental challenges, and will review the 2009 edition of the IEA World Energy Outlook, which is being published early to allow itrs consideration in advance of the Copenhagen talks.
Paris, France