QualityTonnes


		Home \| QT Español


Who We Are Introduction What is a "Quality Tonne" Staff and Office Locations	The Carbon Market Introduction The Market Potential How the Market Works UNFCCC Process	QT's Approved CDM Methodologies Introduction AM0017 (Steam Efficiency Improvements in China) AM0020 (Water Pumping Efficiency in India) AM0023 (Reducing Gas Leaks in Pipeline Compressor Stations) AM0035 (SF6 Emission Reductions in Electrical Grids) AM0037 (Flare reduction and gas utilization at oil and gas processing facilities) ACM007 (Conversion from Single Cycle to Combined Cycle Generation) AM0048 (Elimination of Diesel Self-Generation) AM0052 (Hydropower Optimization)	Proposed CDM Projects by QT and its Partners Replacing SF6 as a Cover Gas in Magnesium Production	QT in the News QT Article in Env. Finance QT Article in Carbon Finance Point Carbon, CDM Monitor, July 15, 2004 Article on QT Point Carbon, CDM Monitor, June 14, 2005 Mott-MacDonald Press Release CCC funds buy QT, May 1, 2007	Areas of Expertise Power Sector Oil and Gas Sector Renewable Energy and Landfill Gas Energy Efficiency Sequestration	What QT can do for you Services: QT Baseline and Monitoring What else can QT do?

The Carbon Market

Introduction

The Kyoto Protocol calls for major industrial countries to reduce their greenhouse gas (GHG) emissions by varying amounts below 1990 emissions levels by 2012. The European Union is supposed to reduce 8% below 1990 levels, Canada 6% and Japan 6%. With Russia's ratification, the Kyoto Protocol came into force on February 16, 2005. As part of Kyoto, countries are allowed to buy emission credits - generated by GHG-reducing projects - in other countries. The treaty has therefore created what is expected to be a multi-billion dollar emissions trading market. Perhaps the most developed market is in the European Union, which has set legally binding limits on GHG emissions for the power sector and large industries. Large European emitters of CO2 will be able to meet their targets three ways: 1) reduce their GHG output; 2) buy allowances from other EU firms that are below their targets (emissions trading) or 3) buy emissions credits from the international market, particularly through the CDM. EU emitters that fail to meet their limits will have a penalty of 40 euros/tonne of CO2 between 2004-2008 and 100 euros/tonne between 2008 and 2012, the end of the first Kyoto period.

For businesses that implement projects that reduce CO2 and other greenhouse gas emissions, this is a major market opportunity. Why? Because for many EU factories and power plants, it will be cheaper to buy credits on the emerging carbon market than to reduce their own emissions for what may be relatively efficient operations.

[ back to top ]