: Kathleen Leonard
: Quality Enhancement in Voluntary Carbon Markets Opening up for Mainstream
: Diplomica Verlag GmbH
: 9783836628570
: 1
: CHF 48.70
:
: Management
: English
: 146
: kein Kopierschutz/DRM
: PC/MAC/eReader/Tablet
: PDF
Climate change is the major challenge of the 21st century. In order to mitigate global warming, atmospheric carbon dioxide has to be reduced dramatically. Via instruments designed by the soon expiring Kyoto Protocol and different other measures, the international community aims to realise this carbon reduction. Experts speak of carbon markets. Where companies, organisations and individuals are seeking to neutralise their carbon footprints, financial actors are making enormous profits. But whom does this market really serve? Economy, environment or both?This study intends to increase the understanding of such markets and to analyse strengths and weaknesses for defining possible quality actions. Firstly, an overview of presently existing and developing carbon markets, their differentiation and locations will provide basic comprehension of the current status of carbon trading. Questions about the role of the US or developing nations like China and India will be answered. Who is forerunner in this market? Afterwards, this work will concentrate on non-binding or so called voluntary carbon transactions. The reader will learn about the supply structure of non-compliance carbon trading and market drivers. Major project types will be discussed as well. Furthermore, the question will be raised if offsetting or voluntary carbon trading has an effect on global warming, if it improves the situation - or not.After analysing market structures and participants' motivations, the author will have a closer look on criticism and markets weaknesses, before introducing quality mechanisms. What instruments will open the carbon market for mainstream participants? Which structural changes are necessary to enhance quality in this nascent market? An outlook will be given on how the voluntary carbon market most probably develops. Finally, the reader will be acquainted with voluntary carbon markets and may decide weather or not they are an option to counteract climate change, the major challenge of the 21st century.
Quality Enhancement in Voluntary Carbon Markets1
Executive Summary4
Table of Contents10
Table of Figures12
Table of Boxes13
Abbreviations and Acronyms14
Introduction16
1 An Overview of Existing Carbon Markets17
1.1 Regulated Markets19
1.1.1 The Kyoto Protocol19
1.1.2 European Emissions Trading Scheme22
1.1.3 Other Planned Trading Schemes under the Kyoto Protocol23
1.1.4 Australia, finally committing to Kyoto24
1.1.5 North American Initiatives25
1.2 Unregulated Carbon Markets27
1.2.1 Chicago Climate Exchange and Australia Climate Exchange27
1.2.2 Functioning of Voluntary Carbon Markets27
1.2.3 Market Volume and Prices30
1.2.4 Market Dispersion32
1.2.5 Project Types and Locations33
1.3 Innovation or Security – Choice of Voluntary or Compliance Market36
2 Along the Supply Chain of Carbon Offsetting – Market Players46
2.1 Project Developers46
2.2 Verification Organisations50
2.2.1 Verification and Labelling51
2.2.2 Verifying the Verifiers – Greenpeace and Co.53
2.3 Offset Suppliers53
2.3.1 Non-Profit Sellers – Changing the World for a Better56
2.3.2 Brokers and Consultants – Drivers for Innovation58
2.3.3 Investment Banks, Funds and Speculators – Important Investors60
2.3.4 Wholesalers and Retailers – Profit Seeking Middlemen62
2.3.5 Companies – Jumping on the Carbon Neutral Train63
2.4 Purchasers of Carbon Offsets67
2.4.1 Individuals – Underrepresented Target Group70
2.4.2 Business – Most Attractive Large-Scale Purchasers72
2.4.3 Events – Accounting for Carbon Footprints73
2.4.4 Public Institutions and Governments – Combining Efforts towards a Low-Carbon Society74
2.4.5 NGO’s – Sceptic Customers76
3 Instruments for Quality Enhancement77
3.1 Criticism and Problems of the Voluntary Market79
3.2 Standards and Labels85
3.3 Registries87
3.4 Carbon Exchanges90
3.5 Governmental Action91
3.5.1 Sensitisation of the Public92
3.5.2 Regulatory Framework92
3.5.3 Initiator for Action94
3.6 Guides and Codes95
3.7 Credit Ratings97
3.8 Managerial Approaches towards Quality98
3.8.1 Benchmarking99
3.8.2 Strategic Alliances100
3.8.3 Environmental Risk Management101
3.8.4 Green Teams102
4 Evaluation of Quality Instruments and Perspectives105
4.1 Evaluation of Quality Instruments106
4.2 Review on Experts’ Opinions towards the Future of Voluntary Offsetting111
4.2.1 Investors See Necessity to Overcome Structural Barricades112
4.2.2 Consultants Predict Continued Growth112
4.2.3 Conservationists Call for Faster and Deeper Change113
4.2.4 Offset Suppliers Lack Overarching Market Information114
4.3 Scenario 1: An Overregulated Voluntary Market115
4.4 Scenario 2: A Supply Driven Market117
4.5 Scenario 3: A Demand Driven Market119
4.6 Scenario 4: Aligning Supply and Demand121
Conclusion126
Glossary128
Bibliography130