The Carbon Market: A Primer for Airports (2011) / Chapter Skim
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Pages 51-57
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From page 51... ...
As was discussed earlier in the Primer, there are two primary sources of value that can be created for airport operators by hosting carbon offset and renewable energy projects. The first is monetary -- developers of projects can sell the environmental benefits of their projects in the form of offset credits or RECs.
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From page 52... ...
Retail Broker Small volumes (less than 1,000 carbon offset credits or RECs) Option for small volumes Costly on a "per unit" basis Bi-lateral (direct)
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From page 53... ...
Wholesale brokers generally work best for larger volume or higher value price trades as they offer a lower cost per unit transacted Trading Offset Credits and RECs 53 Exchange (Parent Company) Commodities Volume Requirements Additional Comments CAR-CRT, CFI-US, RGGI, compliance RECs for MA, CT and NJ and Green-e eligible voluntary market RECs 1,000 tonnes Carbon offset credit and REC commodities applicable to airports GreenX (NYMEX)
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From page 54... ...
Bonneville Environmental Foundation Offset credits and RECs Carbonfund.org Offset credits Climate Trust Offset credits Native Energy Offset credits and RECs Sterling Planet Offset credits, RECs, white tags Terrapass Offset credits and RECs 3Degrees Offset credits and RECs Table 13. Summary of prominent wholesale brokers.
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From page 55... ...
Examples of bilateral transactions at an airport project may include selling the offset credits from a project to travelers seeking to offset the emissions associated with their flight or selling RECs from a renewable energy project to commercial tenants seeking to claim that their store is powered from renewable energy. Template contracts that can be used as a base vehicle to facilitate bilateral transactions are publicly available as summarized in Table 15.
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From page 56... ...
56 The Carbon Market: A Primer for Airports Project Type Instrument Compliance Demand Voluntary Demand Carbon Offset Project Carbon Offset Credit RGGI and California pre-compliance market players Businesses, institutions, and individuals seeking to reduce their carbon footprint (i.e., "green" companies, schools, or airline passengers) Renewable – Solar Solar REC, aka "SREC" Utilities and energy providers in states with solar tier requirements in RPS Businesses, institutions, and individuals seeking to claim solar renewable energy consumption Renewable – Wind, Biomass, Other REC Utilities and energy providers in states with an RPS Businesses, institutions, and individuals seeking to claim renewable energy consumption Energy Efficiency White Tag Utilities and energy providers in states with efficiency requirements in RPS Businesses, institutions, and individuals seeking to claim lower energy usage and/or reduction of emissions and externalities associated with traditional energy production Table 16.
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From page 57... ...
The carbon offset credits for Climate Passport are sourced from projects that result in real, quantifiable, and permanent GHG emission reductions and are third-party verified against the Climate Action Reserve -- a rigorous, objective, and transparent standard for offset credits from forestry projects. Climate Passport also allocates $1.50 per tonne of all offset credit sales to the San Francisco Carbon Fund, a city-run fund that invests in GHG reduction projects within San Francisco.
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