Voluntary Cancellation of CERs: a private sector perspective LACCF Bogotá 2014 Isabela Aroeira | Offset Manager DIFFERENT PERSPECTIVES ON CER’s VOLUNTARY CANCELLATION CDM Board Possibility to create new demand for CDM offset credits Brazil Possibility to compensate big international events through public calls: Rio +20 FIFA World Cup Private Sector The action is aligned to the company values and beliefs: Brand name figuring among the “official CER’s Donors to offset GHG during the 2014 Soccer World Cup” Usage of the “Selo Sustentabilidade Baixo Carbono” COMPLIANCE X VOLUNTARY CANCELLATION • Higher volumes of transacted credits; • Smaller quantities of credits are transacted; (Less than 0,5% of total CDM issuance) • Prices determined according to credits supply and demand. • Prices determined according to “co-benefits” delivered by project activities; • Process have to be fast, transparent and less bureaucratic. CER’s VOLUNTARY CANCELLATION – NUMBERS 2nd Q / 2014 VOLUNTARY CANCELLATION BY HOST PARTY (CERs/tCERs/lCERs) 2nd BRAZIL (17%) 1st CHINA (36%) 3rd ARGENTINA (12%) VOLUNTARY CANCELLATION BY PROJECT TYPE (CERs/tCERs/lCERs) 1st 2nd FUGITIVE EMISSIONS (10%) AFFORESTATION AND REFORESTATION (59%) 3rd HYDRO (10%) HOW TO CANCEL CER’s? PARTNERSHIP AGREEMENT (MMA AND COMPANY) SEARCH FOR BRAZILIAN CER’s PRICE NEGOTIATION SMALLER DEMAND, HIGHER PRICES CANCELLATION BY PROJECT OWNER TEXT: PURPOSE/BENEFICIAR Y OF CANCELATION… AMIGO DO CLIMA - PROGRAM AND PREMISSES • Selected high quality carbon credits; – Industrial gas offset projects and large hydro – questionable environmental integrity – tCERs – how can a temporary offset deliver permanent benefits? • Possibility to combine carbon projects (different standards, project activities…) to compensate one action; • Traceable, transparent, auditable system. www.amigodoclima.com LESSONS • Private sector demand faster and transparent operations; • The co-benefits of the project add value for voluntary compensation (SD Tool); • Voluntary cancellation initiatives are growing and have an important role on todays scenario, enhancing carbon transactions. Isabela Aroeira | Offset Manager [email protected] +55 (31) 8401-1766 +55 (31) 3401-1074 Obrigada!