CARBON TRUST LOOKS TO INVEST IN FOREST OFFSETS
The Pacific Carbon Trust has released a request for information to develop forest-based carbon offsets, marking the first major step toward positioning B.C. forests as a key supplier in the global carbon market, Forests and Range Minister Pat Bell announced today.
British Columbia is already world-renowned for its efforts on reforestation. BC currently has an opportunity to increase the amount of carbon their forests sequester, and harness the economic potential of carbon offsets,This move is expected to strengthen the forest sector and the communities that depend on it and will remove more greenhouse gases from the atmosphere and help in meeting our climate change goals.
The request for information will gauge interest in projects based on three types of silviculture investments: creating more forests through afforestation, planting seedlings grown from superior seeds, and fertilizing. The goal is to increase the number of trees and improve their volumes and growth rates to make them more efficient at sequestering carbon.
Projects can be located on privately owned land – including property held by local governments and First Nations – as well as Crown land managed under area-based tenures, such as tree farm licences, woodlots and community forests. A request for qualifications and proposals will follow later this year.
The Trust chose afforestation, use of superior seeds and fertilization for its first round of offset procurements because the results are more easily measured and verified. Additional forest-based projects are expected as more methods for quantifying carbon sequestration are developed.
This is being seen as an opportunity to develop innovative carbon-offset projects that will create jobs and generate revenue while being mindful of our planet’s health.According to the BC Finance Minister Colin Hansen this move is expected to help BC meet its overall goal to reduce greenhouse gas emissions by 33 per cent by 2020.
The Pacific Carbon Trust is a Crown corporation established under the British Columbia Climate Action Plan. Its mandate is to deliver quality B.C.-based greenhouse gas offsets to help clients meet their carbon reduction goals.
The Trust expects to secure up to one million tonnes of offsets annually in order to meet the province’s greenhouse gas reduction targets. For more information on the Trust visit www.pacificcarbontrust.ca
Tuesday, April 7, 2009
C+ Price Methodology
Price assessment methodologies followed by C+
bid-offer-close methodology of EUA.
Basis
C+’s bid-offer close methodology is based on over-the-counter (OTC), brokered prices. Every day, active brokers and traders in the EU emissions trading scheme supply market information at close of market to C+.
Each broker acts with the permission of their corporation or trade desk. The brokerages act independently from each other and the information they provide is confidential.
The information they provide is confidential and held by C+. The data is not circulated outside C+ and is used solely for compiling the market assessment inorder to be published on C+' website.
Time of assessment and verification
C+' closing price reflect the best bid and the best offer at 23:00 Indian Standard Time (IST) exactly.C+ volunteers then contact as many of the most active traders in the market as possible each day, usually about five, to verify that the bid and offer is firm and executable. The traders are required to act in complete independence when confirming the numbers submitted by brokers.
C+ may discard any information at their discretion which they consider unconfirmed or unrealistic. They may also discard bids and offers that they believe is trading away from the market.
Bids and offers and lot size
All bids and offers must be firm at 2300 IST and be of a minimum lot size of 5000 allowances. All bids and offers must be open and available to any reputable and creditworthy counterparty, although C+ recognise that national legislation may prohibit companies from trading with certain counterparties. Such counterparty issues will be dealt with on a case-by-case basis.
Illiquid contractsIn the case of illiquid contracts, where no firm bids and offers can be ascertained at 2300 IST,C+, when assessing the closing price, will take into account the previous relationship these contracts have had with a more liquid counterpart. Consequently, the market structure will be taken into account when formulating the best bid and offer in the absence of any firm indications at the end of the day. In the unlikely event that there is no bid or offer indications throughout the day, the closing price will remain unchanged.
Timing
Currently C+ tracks the price of EU allowance contracts for spot delivery and contracts delivery on 1 December 2008-2012.
Price
The price refers to one EU allowance, equivalent to one metric tonne of carbon dioxide emissions.
bid-offer-close methodology of EUA.
Basis
C+’s bid-offer close methodology is based on over-the-counter (OTC), brokered prices. Every day, active brokers and traders in the EU emissions trading scheme supply market information at close of market to C+.
Each broker acts with the permission of their corporation or trade desk. The brokerages act independently from each other and the information they provide is confidential.
The information they provide is confidential and held by C+. The data is not circulated outside C+ and is used solely for compiling the market assessment inorder to be published on C+' website.
Time of assessment and verification
C+' closing price reflect the best bid and the best offer at 23:00 Indian Standard Time (IST) exactly.C+ volunteers then contact as many of the most active traders in the market as possible each day, usually about five, to verify that the bid and offer is firm and executable. The traders are required to act in complete independence when confirming the numbers submitted by brokers.
C+ may discard any information at their discretion which they consider unconfirmed or unrealistic. They may also discard bids and offers that they believe is trading away from the market.
Bids and offers and lot size
All bids and offers must be firm at 2300 IST and be of a minimum lot size of 5000 allowances. All bids and offers must be open and available to any reputable and creditworthy counterparty, although C+ recognise that national legislation may prohibit companies from trading with certain counterparties. Such counterparty issues will be dealt with on a case-by-case basis.
Illiquid contractsIn the case of illiquid contracts, where no firm bids and offers can be ascertained at 2300 IST,C+, when assessing the closing price, will take into account the previous relationship these contracts have had with a more liquid counterpart. Consequently, the market structure will be taken into account when formulating the best bid and offer in the absence of any firm indications at the end of the day. In the unlikely event that there is no bid or offer indications throughout the day, the closing price will remain unchanged.
Timing
Currently C+ tracks the price of EU allowance contracts for spot delivery and contracts delivery on 1 December 2008-2012.
Price
The price refers to one EU allowance, equivalent to one metric tonne of carbon dioxide emissions.
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