The EU Will Exceed 20% Green Energy Target

A report by the European Wind Energy Association (EWEA) has found that the European Union (EU) will exceed its target of meeting 20% of its energy needs from renewable sources by 2020.

Out of the 27 member states, 25 expect to meet or exceed their national targets, EWEA said, based on its analysis of national action plans submitted by EU governments to the European Commission.

"Taken together, the action plans show that the EU-27 will meet 20.7 percent of its 2020 energy consumption from renewables," said Justin Wilkes, policy director at EWEA.

Spain has said it is expecting to surpass its goal by 2.7% and Germany by 1.6%. Luxembourg and Italy, which are predicted to fall short of their national targets by 2.1% and 0.9%, said they plan to import renewable energy from other countries to make up the shortfall.

This shows the growth in the environmental markets, despite the global downturn of the past few years. The carbon credit markets will continue to grow as the target dates near.

---

To find out more about carbon credits, contact 360 Invest Group today.

China Enters Emissions Trading

The EU has begun advising Beijing on the establishment of an emissions trading market in China in order to cut greenhouse-gas emissions.

The entrance of the world’s second largest economy into the carbon market will boost the size of the market and help it grow.

Officials from China’s National Development Reform Commission (NRDC), the government’s central economic planning agency, met with EU climate officials over two days in Beijing recently, according to the China Daily.

The EU operates the world’s largest carbon emissions cap and trade scheme issuing tradable permits for two billion tonnes of CO2 emissions per year from 11,000 high-emitting power and manufacturing installations.

Jos Delbeke, director-general of the European Commission’s climate office in Brussels said his team shared the experiences and expertise gained from the EU ETS and the two delegations discussed the operational details of a carbon system.

China has a target to reduce the emissions of its economic output by up to 45% by 2020.

---

To find out more about investment opportunities in carbon credits contact 360 Invest Group today.

Carbon Offset Investors Have Long-Term Confidence

Investors in the United Nations' Clean Development Mechanism (CDM) now have more confidence in the carbon offset market after 2012 after the number of post-2012 carbon credit deals rose in recent weeks.

On Thursday, UK-based project developer Camco International reported for the first time that it had secured options in CERs due to be issued after 2012 because of more interest from buyers and more market transactions taking place.

"The market has evolved. There is a tangible value for post-2012 credits," Yariv Cohen, Camco's chief carbon officer, told Reuters.

In a project development update, Camco said it has contracts for a risked 28.1 million tonnes and holds contractual rights of up to a further risked 27.6 million tonnes.

This week alone saw three post-2012 deals announced.

A consortium agreed to buy 2 million pre-2012 and post-2012 CERs from a Moroccan wind farm project, while Vitol SA bought 8.5 million CERs from carbon asset manager KYOTOenergy Pte, of which 92 percent are expected to be issued after 2012.

German chemical company Lanxess invested 7 million euros ($9.67 million) in an Indian biomass project to earn post-2012 CERs, Point Carbon reported.

In September, French carbon investor CDC Climat set up a subsidiary to manage 60 million euros of investment in carbon assets, including post-2012 credits.

"Demand been up for a quite a while. People are making sure they are positioned properly for 2012," said Simon Glossop, partner at CF Partners.

---

For more information about carbon investing, speak to one of our consultants at 360 Invest Group today.

EU Tightens Emissions Limits

The European Union has tightened emissions limits for 2020, which is likely to boost demand for carbon credits as governments and companies try to stay under the allowance.

The Carbon Markets & Investors Association, a lobby group of banks and greenhouse-gas-trading companies, has said it supports this adoption of tighter limits. The group would support a unilateral target of a 30 percent cut in emissions from 1990 levels by the end of the decade, the lobby said today in an e-mailed statement. The current target is for a 20 percent reduction.

The EU is setting rules this year for the third phase of its carbon market, the eight years through 2020. The second phase runs for the five years through 2012.

“The global economic downturn has had the effect of leaving many installations covered by the EU emissions trading system with an excess of Phase II allowances that can be banked into Phase III,” the association said in the statement.

---

For more information about carbon credits, speak to one of our consultants at 360 Invest Group today.

Green Investment Bank to boost UK's Low Carbon Status

The coalition government in the UK has released details of a potential Green Investment Bank.
The released report focuses on the importance of the UK becoming a low-carbon economy, reducing emissions, offsetting carbon and investing in the growing green energy markets.
The report finds that private sector investment will be crucial in shifting the country to an eco-friendly economy.
The general secretary of the TUC commented, saying the bank would be a, "major step towards the crucial goal" of making the UK into a "world-leading green economy".
The bank has been described as carrying out investments with a social purpose as well as creating income streams for investors. Its job will be to raise the necessary equity and debt finance to fund nuclear power stations, wind farms, smart grids and other green energy projects.
The move is seen as indicating further interest in green energy investment in the UK and across the world.

---

To find out more about green energy investments, contact 360 Invest Group today.

Barclays:California could face steep carbon prices

California could face steep carbon prices: Barclays

Published: 02 Feb 2011 17:23 CET Last updated: 02 Feb 2011 19:25 CET

Emitters may pay $70/t to comply with California GHG limits in 2018-2020, Barclays projects.

In a research note released today, the bank's London-based analysts assessed the California cap-and-trade market, which is set to begin trading in January 2012.

In 2016, the market should cover 400 million tonnes of carbon dioxide equivalent – a fifth of the European carbon market that year.

The economy-wide cap-and-trade scheme is one of several measures aimed at lowering greenhouse gas emissions to 1990 levels by 2020 - enshrined in the state’s AB 32 law.

The achievement of other complementary state policies, such as an aggressive renewable energy standard (RES), a low-carbon fuel standard for transport fuels, and vehicle emission standards will have a significant impact on carbon prices, the analysts said.

In addition, the availability of offsets emitters can use in the cap-and-trade programme will have a notable effect on carbon prices.

In the programme’s first compliance period, from 2012-2014, prices will be modest as the market will have an adequate supply of allowances (CCAs) and offsets (CRTs), according to the note.

Phasing in
In this initial phase, only industry, power - including imports - and oil refiners will be covered. Emitters are likely to pay $12 when trading begins in 2012 and an average of $16 over the entire compliance period, the analysts predict.

In early pre-compliance trading over-the-counter, traders have said the 2012 delivery contract was bid at $14.00, with an asking price of $14.50. Prices have been rising steadily since December when regulators finalised the cap-and-trade rules.

But as demand for CCAs and CRTs increases with the entry of suppliers of oil products, natural gas and LPG into the market, the analysts said prices will average $40 in the 2015-2017 period.

Forward hedging of liabilities for the third compliance phase (2018-2020) will pressure prices in the second period and “use up any slack in the system,” according to the research note.

Given the shortness of the market starting in the second compliance phase, allowances from a special “price control reserve” will likely be brought to market in 2018, when prices are expected to hit the reserve trigger of around $80.

Roughly 124 million allowances will be held in the reserve throughout the three compliance periods, the bank said.

This means that prices would range around the average reserve price of that period of around $90, meaning prices would average $73 from 2018-2020.

To view the full story by Valerie Volcovici – vv@pointcarbon.com visit pointcarbon.com

carbon trading
carbon credits