Options to improve existing and to create new carbon market mechanisms in a post 2012 climate regime

In this project, we first mapped out the existing proposals for the various sector-based mechanisms and NAMAs that were proposed in the process towards Copenhagen. These proposals were then assessed in terms of how they might work and be implemented in a selection of the most significant sectors in 8 non-annex-1 countries. Finally, the project looked into the likely level of emissions reductions these might bring to the market. The project was commissioned by a European government.

Assessment of REDD potentials

The project consisted of assessing the level of reductions/removals obtainable by introducing a 3-step REDD scheme to 2020 by joint efforts between US (Waxman-Markey) and Europe. A deforestation model with opportunity cost and phase-in was established to help analyse the financial requirements needed. Project was commissioned by a European government.

Assessment of sector approaches for Non-Annex 1 countries

The project consisted of assessing how sector approaches could work in a post-2012 climate regime. First, the different types of sectoral approaches were analysed. Then, selected countries were analysed to assess appropriateness of the various sector approaches. Finally, reduction volumes to 2020 were assessed. Project was commissioned by a European government.

Greening Europe multi-client study

The project consisted of a study examining the European carbon market and carbon and energy policy towards 2020. The study provides CO2 and power prices and describes the interaction between GHG reduction, renewable deployment and energy efficiency policy in Europe. The project was done as a multi-client study. This multi-client was conducted for various European clients.

IET and GIS legal status in Latvia, Ukraine and Russia

Report on policy developments and legal background of IET in the three countries. The work included detailed explanations of legal status and institutional infrastructure for AAU trading. Project was commissioned by a government body.

Mapping of climate change policies in key countries

Quarterly reports on domestic climate change policies at national and regional level in USA, Canada, Australia, EU main countries, Russia, Ukraine and key CDM countries. Project was commissioned by the Government of Japan.

Clean energy investment analysis in the former Soviet Union

Analysis for clean energy policies and potential, clean energy project case studies in Ukraine and Kazakhstan. Project was commissioned by a Canadian non-profit organisation.

Post-2012 expansion strategy
This assignment comprised analysing the current CDM/JI sourcing operations of a European utility currently under the EU ETS in light of future compliance needs, competition and possible upcoming opportunities. The project developed a common platform of understanding, discussed various forms of operation, and then built a business case around the desired sourcing operation until 2020. The project was commissioned by a European utility. 

Carbon fund strategy
CDM market entry strategy: A two part project incorporating comprehensive training on all aspects of the carbon market and a tailored CDM market entry strategy report. The strategy report included analysis of the company project pipeline and project development potential, converted into an annual cash flow. The pros and cons of different CDM involvement strategies were examined, taking into account the competence and experience of the client. The report went on to recommend various trading strategies. Project was commissioned by an African CDM/carbon fund. 

Market entry strategy for a large investment bank
The assignment focused on business opportunities within CDM/JI project finance and credit risk management. The assignment consisted of three parts: (i) Identification of the five CDM/JI project types that are likely to have the greatest need for credit solutions; (ii) analysing main risks, market size, geographical distribution etc for each shortlisted technology and (iii) describing the range of business activities in the carbon trading arena to provide the company with an overview of business opportunities and an assessment of the competitive environment. Case studies of successful companies were provided in each of the parts. Project was commissioned by a European investment bank. 

Business Strategy and CER Acquisition Support for major EU Utility
This project comprised extensive advisory support on the establishment of a new carbon credit acquisition and trading unit for a large EU utility. The project combined long term strategy with a comprehensive business plan and advice on sales and trading. Project was commissioned by a European utility.

Designing a low-carbon growth plan for Non-Annex-1 Government
Point Carbon and Perspectives are currently working closely with a non-Annex 1 government to design their low-carbon business plan. The projects aims to create a few definitive frameworks to deliver actual GHG reductions that can be measured against the country’s action plan. The project aims to identify and prioritize sectors to develop low-carbon programmes. Then, the project will go on to define sound and MRVable NAMAs that are credible for implementation. The project was commissioned by a non-Annex 1 government, with additional funding from a European Government.

Options for utilizing the CDM for global emission reductions post-2012
This project has the objective to enable a European Government to develop its own negotiation position regarding the contribution of a reformed CDM to the global greenhouse gas emissions reductions. Options for the implementation of a reformed CDM was developed and discussed in terms of pros and cons. Further, their implications for the international emissions market was quantitatively analyzed, implementation barriers identified and the political acceptability by parties to the Convention evaluated. The project's aim was to equip the country's delegation with an understanding and ability to react efficiently to the positions from other parties. Project was commissioned by a European Government. 

London as a low-carbon capital
Major project to overhaul the Mayor of London’s strategy and business plan to achieve low-carbon development through the period 2010 to 2025, advising on: programmes to ramp up and those to drop; evaluation criteria to screen new projects; establishing a prospective project pipeline; proposals to leverage £40 billion in private finance; the role of green bonds and carbon markets in financing reductions in an urban setting; baseline methodology for building sector; best practice cast studies; assessment of the city's potential as host to low carbon services and industries. 

Four scenarios for the outcome of the Copenhagen negotiations
The project outlined four scenarios for the outcome of the Copenhagen negotiations, and the different quantitative results expected from these scenarios with regards to participation, emission reductions and emission reduction costs (credits and total costs). Project was commissioned by a European government. 

Capacity building for a non-Annex 1 DNA
This project consisted of helping a non-Annex 1 government initializing their designated national authority (DNA). The assignment consisted of budgeting, setting up and mandating a prospective organisation, identifying sectors and project types of particular interest, capacity building and training of relevant personnel in the UN process. Finally, the assignment included promotion of the DNA’s activities and the promotion of CDM activities in the country. The project was commissioned by a non-Annex 1 Government. 

Assessment of sector approaches for Non-Annex 1 countries
The project consisted of assessing how sector approaches could work in a post-2012 climate regime. First, the different types of sectoral approaches were analysed. Then, selected countries were analysed to assess appropriateness of the various sector approaches. Finally, reduction volumes to 2020 were assessed. Project was commissioned by a European government. 

New Market Mechanisms in a post 2012 climate regime 
– challenges and opportunities
This project explored the different proposals for new mechanisms in the extension of the Kyoto protocol. The goal of the project was to investigate how these proposals might work, how they could be integrated, and how effective these proposals might be delivering emissions reductions. Project was commissioned by a European government.

Risk assessments and desk reviews
Over the past years, Point Carbon has done hundreds of risk assessments of CDM and JI projects on various stages and in various countries. These risk assessments have taken form from simple desk reviews to recalculation of baselines to on-site visits. Customers have been utilities, financials and governments, and projects have ranged from specific assessments of a particular project to screening, rating and risk assessment of groups of up to 30-40 concrete projects. 

On-site due diligence of an African forest plantation project
Point Carbon and Perspectives GmbH conducted an on-site due diligence of a potential CDM project in Africa. The report covered all key project risks, including project implementation risks, project approval risks and the social and environmental sustainability of the project. Project was commissioned by the Government of Norway, and can be downloaded here.

Risk assessment and price recommendations for two JI projects
The report included quantitative and qualitative risk assessment as well as a walkthrough of the commercial side of a potential investment in two JI projects located in Russia. Specific recommendations were given to the client on a fair price for the project and on issues to follow up and clarify during the contract negotiations. Due to the uncertainties with regards to if and when the first Russian host country approval will be given, special focus was on the Russian host country risk by:
• Analyzing the general status of JI in Russia based on Point Carbon’s Russian host country rating and the latest JI policy development in the country.
• Assessment of the likely timeframe and likelihood of host country approval for the two specific projects based on factors such as:
     - How far they have reached in the Russian approval process
     - Host country approval outlook for the project type 
     - Institutional capacity of the responsible ministry 
     - Track 1 vs. track 2 outlook 
     - Ownership structure of the project.
Project was commissioned by a European government.

Valuation of portfolio of CER contracts
Identifying and quantifying volumetric risk factors, establishing a long-term credit price curve and calculating the asset value of the portfolio of CER contracts based on principles of fair value. The project was commissioned by a European CDM project developer. 

Quarterly valuations for a carbon fund
Point Carbon is providing quarterly updates of the value of the fund’s investments in primary CDM and JI projects, with a breakdown of different empirical risk factors on the portfolio’s value. The empirical risk factors were determined using Point Carbon’s proprietary Carbon Valuation Tool. The project was commissioned by a European fund/hedge fund. 

JI Portfolio Valuation
The project consisted of valuation of a JI portfolio for a project developer as part of a transaction process. The portfolio was eventually sold. The project was commissioned by a European CDM project developer. 

Monthly portfolio valuation
Valuation of JI portfolio for alternative investment firm: Point Carbon conducted an empirical valuation of a portfolio of JI projects. The project was commissioned by a European private equity firm. 

Valuation of major project developer
As part of a due diligence process, this project was a valuation of major CDM & JI project developer with a portfolio of more than 100 projects. Point Carbon built a valuation model to assess the total value of the project developer, including a number of price scenarios for EU ETS and post 2012 policy scenarios. The project was commissioned by a US private equity firm. 

Valuation of project aggregator for potential acquisition
The project consisted of conducting an external valuation of a large aggregator of CDM projects as a potential acquisition target for private equity investor. The portfolio consisted of more than 150 VER, CDM and JI projects. Project was commissioned by a US private equity firm. 

External review of government CDM/JI portfolio
This project consisted of three parts. Part one consisted of a desk review of 15 CDM & JI projects that the client was about to invest in. The review comprised ratings and an empirical assessment of delivery potential within the Kyoto period. Part two consisted of a secondary CER market outlook to 2013, also looking at how the secondary market is traded, and what CERs are exchanged. Finally, part 3 comprised evaluating a large portfolio of Kyoto period CER/ERUs. The valuation was based on Point Carbon’s empirical framework and some expert judgement. The client was a European government.