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Double counting of EU ETS carbon allowances on CITL records of national emissions registries
London - November 2007
E3 International (E3) has analysed all the serial numbers of carbon allowances surrendered to date by liable participants in the EU Emissions Trading Scheme (EU ETS). About 4 billion carbon allowances have been surrendered by over 10,500 installations across Europe against their 2005 & 2006 carbon dioxide emissions. These serial numbers are publicly available from the Community Independent Transaction Log (CITL).
The CITL records display evidence of double counting on 13 out of 24 national emissions registries. “Double counting” means the same allowance ‘block’ (originating registry; start serial number; end serial number) has been surrendered more than once. Excluding the Italian registry, E3 has discovered 238 cases of double counting, totalling nearly 18 million allowances and affecting 385 installations. Double counting appears rife on the Italian registry, with hundreds of cases affecting millions of allowances. E3 does not have access to individual registry accounts. We therefore cannot determine from the CITL records whether the problem lies with the CITL or with the individual national emissions registries.
Full details of each individual case in which identical allowance block have been surrendered more than once are contained in the full E3 report on double counted allowances which is available to registry operators at no charge or can be purchased by commercial entities from the E3 website: http://shop.e3international.com/ These data can be checked against public CITL records.
The full press release is located here.
E3 commissioned to examine the economic efficiency of personal carbon trading for the RSA
London - September 2007
The Royal Society for the Encouragement of Arts, Commerce and Manufactures (“RSA”) is undertaking a rigorous 3 year project to investigate the possible application of personal carbon trading in the UK as a means to encourage and incentivise individuals to change behaviour and reduce greenhouse gas emissions.
Personal carbon trading is based on the concept that each citizen should be allocated with an equal ‘carbon allowance’ as part of a ‘cap and trade’ scheme designed to control carbon emissions. The ‘cap’ (the total body of emissions allowed under the scheme) would initially be set at current emissions levels and gradually be reduce to meet the long-term carbon emission reduction goals. These carbon allowances would be issued at no cost to individuals and surrendered electronically when purchasing domestic and transport fuel and electricity. People using less than their share could sell the surplus to people using more than their allotted share, via a market. In this way, it would provide an incentive for every individual to take steps to reduce their ‘personal emissions’.
E3 has been commissioned by the RSA to examine the relative economic efficiency of personal carbon trading in comparison to the use of pure taxation methods or business-based emissions trading schemes. Our work focuses on whether personal carbon trading is a cost-effective approach for overcoming the various barriers – particularly individual behaviour - to the efficient functioning of the existing climate policies and economic instruments.
Further details of our work can be found at http://www.rsacarbonlimited.org/aboutcarbonlimited/default.aspa
E3 International Supports the Australian Business & Climate Group
Brisbane – August 2007
The Australian Business & Climate Group comprises nine leading organisations that have come together to look at how Australia can accelerate the development and deployment of low emission technologies. The participating organisations are Anglo Coal, BP Australia, Deloitte, Mirvac, Rio Tinto, Santos, Swiss Re, VicSuper and Westpac.
The group is seeking to stimulate debate in Australia between government, industry and the community to determine appropriate policies and measures to trigger a transformation of the energy market towards low emission technologies, while leveraging national comparative advantage.
Given the growth in global greenhouse gas emissions, and the importance of new technologies in reversing this trend, this area is one of lively debate at present and it poses some of the most difficult policy questions that government and business currently face.
E3 International supported the Australian Business & Climate Group by:
- Examining the process of technology innovation and in particular the barriers and challenges that to relate specifically to zero and low emissions energy technologies;
- Reviewing current approaches to the development and deployment of low emissions technologies;
- Preparing a number of case studies that examined lessons from the deployment of selected new technologies in certain markets and industry sectors, which included tracing the development of the technology, identifying the market mechanisms that enabled the deployment, and assessing how barriers to deployment were overcome; and
- Identifying the implications for Australian technology policy.
The research findings underpin the Australian Business & Climate Group’s recently released report entitled Stepping Up: Accelerating the Deployment of Low Emission Technology in Australia, which calls for the urgent development of a National Low Emission Technology Strategy to complement an Australian emissions trading scheme, in order to reduce Australia’s greenhouse gas emissions.
The report can be viewed at http://www.businessandclimate.com/report.htm
E3 Involved in Preparatory Work for New UK Emissions Trading Scheme
London – March 2007
E3 Europe participated in a project, led by HEDRA plc, working on UK Government’s proposed new UK emissions trading scheme - the Energy Performance Commitment (EPC). The EPC is a proposed mandatory cap on the carbon dioxide emissions of all UK companies which consume more than 3,000 MWh electricity per year, coupled with the auctioning of tradable carbon allowances.
E3’s contribution to the project was to work with HEDRA to produce a solution that helps overcome the current obstacles of data access and organisational definition and provide a clear guidance framework to the UK Government for determining which organisations (and parts of organisations ) would be liable under the proposed EPC legislation.
E3 Staff Co-Authors Second Edition of Book: "Climate Change and Emissions Trading: What Every Business Needs to Know"
London – March 2007
Andy Kerr, who leads E3’s European office, is the co-author of the comprehensive business reference book “Climate Change & Emissions Trading: What Every Business Needs to Know” [ISBN-10 0-9550839-1-5, ISBN-13 978-0-9550839-1-4]. Its second edition was launched in London in March 2007. Priced at only £99 per copy, with discounts for multiple orders, it is a comprehensive and up-to-date guide to climate change and emissions trading. It provides an updated and expanded analysis of the regulation, the market and opportunities it presents for both APP, Kyoto and European countries. It includes both the policy context and concise practical advice for businesses, institutions, advisers and regulators.
The first edition was bought by the UN, EC, international energy companies, industrial organisations , financial institutions, legal and financial advisers, and emissions and climate specialists.
Topics include:
- Markets and Finance: The value of allowances. Contracts and trading issues. Pros and cons of trading and investing in emissions. Financial analysis of European trading and compliance so far. Physical delivery, registries and exchanges. Price drivers and the outlook for prices.
- Regulation: A summary of the applicable legislation. The lessons from Europe for making Kyoto work. Kyoto countries’ reports of their annual emissions caps. Enforcing compliance with Kyoto targets. The Kyoto projects and sustainable development. Comparing the Kyoto and APP approaches.
- Science and measurement: The updated state of knowledge on global warming. The ‘inconvenient truth’ of an inexact science. Measuring and verifying data and compliance. The role of sinks and sequestration.. Carbon capture and storage.
- The Future: Beyond President Bush. 2012: what happens next? Market evolution: next stop the retail sector. Weather and climate forecasts: what the experts say. The interaction of weather derivatives and insurance.
For further details and an order form click here.
To view the press release click here.
To view an article in The Australian referring to the report click here.
First edition data:
To view a copy of the introduction click here.
Review by Petroleum Economist click here.
Review by Oil Voice click here.
Review by Global Cement and Lime click here.
Ford Motor Company Expands Application of Emissions Management Software
December 2006
The Ford Motor Company will use EMISSIONS logic to manage a full range of environmental utilities and contaminants. EMISSIONS logic – E3’s associated company CarbonSim’s and LogicaCMG’s emissions management software – will be used to manage Ford’s energy and fuel consumption, waste generation and recycling and water use and discharges at more than 70 manufacturing sites throughout Europe, North America, South America and Australasia.
E3 International Supports Exploration of Technology Innovation Policy to Support the Development and Deployment of Zero and Low Emissions Technologies.
Sydney – November 2006
E3 has been engaged by a consortium of 12 leading Australian companies to provide specialist advice on technology innovation, development and deployment. Given the growth in global greenhouse gas emissions, and the importance of new technologies in reversing this trend, this area is one of lively debate at present and it poses some of the most difficult policy questions that government and business currently face.
Over coming months, E3 will:
- Examine the process of technology innovation and in particular the barriers and challenges that to relate specifically to zero and low emissions energy technologies;
- Review current approaches to the development and deployment of low emissions technologies;
- Prepare a number of case studies that examine lessons from the deployment of selected new technologies in certain markets and industry sectors, which includes tracing the development of the technology, identifying the market mechanisms that enabled the deployment, and assessing how barriers to deployment were overcome; and
- Identify the implications for Australian technology policy.
E3 Involved in Innovative Biomass CDM Project in Sri Lanka
Colombo – 1 March 2006
E3 International is partnering with Sri Lanka renewable energy project developer EarthWatts™ Lanka Limited (ELL) seeking to commercialise an innovative biomass project in the country.
The proposed project comprises a 6 MW biomass power plant utilising rice husk and fuel wood resources. A distinguishing feature of the project will be the utilisation of high grade waste ash as an additive to be used in the concrete industry. The project will be eligible for creation of Certified Emissions Reductions (CERs) under the Clean Development Mechanism of the Kyoto Protocol.
The aggregation of biomass resources in developing countries presents a new set of challenges – in particular the development of resource procurement strategies based around large numbers of small scale resource providers – rice mills or fuel wood outgrowers. In these circumstances, conventional procurement models that are heavily reliant on legal enforcement and financial compensation are of limited use. Risk management models more appropriate to local circumstances are therefore required – in the case of the proposed project, this will involve incorporating the long term viability of resource suppliers as an integral element of the project, and partnering with credible industry and institutional stakeholders.
Over coming months E3 International will be working with ELL to finalise the business model, secure certification under the CDM and contractual arrangements for the sale of CERs and facilitate equity investment in the project.
Carbonsim & Logica CMG to help leading automotive company manage its greenhouse gas emissions
Germany – 25 October 2005
Ford Motor Company will use the EMISSIONS logic solution developed by CarbonSim & LogicaCMG to manage its global greenhouse gas emissions and to comply with a variety of environmental regulations and emissions trading schemes.
CarbonSim is pleased to announce that Ford Motor Company has chosen EMISSIONS logic – CarbonSim and LogicaCMG’s emissions management software – to manage the company’s global greenhouse gas emissions and to comply with the EU Emissions Trading Scheme (ETS) and with similar schemes in North America.
Ford will deploy EMISSIONS logic at dozens of sites in Europe and North America. The flexibility of the solution means that Ford will be able to use it to manage CO2 and other emissions under a variety of regimes and methodologies.
EMISSIONS logic manages companies' compliance with the EU ETS and other emissions trading schemes by: tracking their greenhouse gas emissions and compliance against obligations; managing their emissions allowances and credits; evaluating strategies and projects for emissions reduction and generating internal and external reports.
Craig Windram , CarbonSim’s Chief Executive Officer, said: “EMISSIONS logic will provide Ford with a single, comprehensive, enterprise-wide solution to manage their global emissions. CarbonSim and LogicaCMG are pleased that our solution has been chosen by one of the world’s leading corporations. It is testimony to Ford’s commitment to environmental improvement and to the importance that they attach to managing their greenhouse gas emissions, as well as to the strengths of EMISSIONS logic.”
Jim Tapper, managing director for global energy and utilities, LogicaCMG commented, “We are delighted to be working with Ford to help them cost-effectively manage their compliance with emissions management regulations. LogicaCMG is committed to helping our clients address the compliance and trading challenges that result from these schemes, as well as setting up and running the national registries at the heart of the emissions market.”
Italian Government selects E3 international to help manage their National Emissions Registry
London – 4 October 2005
E3 International and LogicaCMG will provide support services for the Italian national emissions registry to help Italian companies to comply with their emissions targets under the EU Emissions Trading Scheme.
E3 International today announced that together with partner LogicaCMG it had been selected to support the Italian Government’s national emissions registry for use under the European Union's (EU) Emissions Trading Scheme (ETS). The two companies will develop training materials such as courses and manuals for registry users and provide support services including an email support centre. As this is the first such registry in Italy, the support given to companies will play a vital role in ensuring the successful implementation of the EU ETS.
Srian Abeysuriya , Principal at E3 International, said: “I am delighted that E3 International is working with APAT to help them meet the demands placed on Italian companies by the EU Emissions Trading Scheme. This is the first step in ensuring that companies are able to comply with their obligations by the end of the first compliance period in March 2006.The result achieved is a very visible result of our collaboration with EDW International, which is our partner and representative in Italy”
Domenico Gaudioso of APAT said: "We chose E3 International and LogicaCMG because of their comprehensive knowledge of emission issues in general and their track record in helping companies to prepare for and to comply with the EU ETS, as well as their expertise in managing and supporting emission registries in various countries in the world."
Jim Tapper, managing director of LogicaCMG's international energy and utilities business, said: "The national registries are central to the ETS and their smooth operation is vital to the success of the scheme. To date 11 of the 25 member countries have partially operational national registries, but we need to ensure all members of the EU are fully prepared by early 2006 to meet the compliance requirements of the first year’s CO2 targets. LogicaCMG and E3 International’s partner company CarbonSim also help individual companies to comply cost-effectively with the EU ETS through their EMISSIONS logic software, which will link seamlessly with the national registries."
Carbonsim and Logica CMG join forces to offer new software solution
London – May 2004
The new European Union Emissions Trading Scheme (EU ETS) will come into effect on 1 January 2005. It imposes a legal obligation on thousands of companies across Europe to reduce their CO2 emissions in line with stringent European targets.
The cost of complying with these obligations will run to millions of Euros per annum; the cost of not complying with these obligations will run to hundreds of millions of Euros per annum.
Faced with these new risks and costs to their business, company boards are asking:
- Are we managing this multi-million euro liability effectively?
- Are we keeping accurate track of emissions and obligations?
- Are we using the correct measuring and reporting protocols?
- Are we selecting the most cost-effective abatement measures?
- Are we optimising decision making across whole-of-business?
- Are we making most efficient use of people’s time and effort?
If these companies are to be ready for the start of the EU ETS in less than twelve months’ time, they will have to start preparing now. For most companies this is a daunting task and few are fully prepared.
Current systems are not sufficient to meet the challenges of the EU ETS and all of these companies will need new tools, systems and processes to support their compliance under the Scheme.
To help companies comply with their obligations under the EU ETS, CarbonSim and LogicaCMG have developed an emissions inventory and compliance management solution – called EMISSIONS logic.
EMISSIONS logic is a comprehensive solution that allows companies to quantify and analyse their emissions, to track their compliance against the EU obligation, to identify abatement projects that will reduce their emissions, to assess alternative policy scenarios and corporate strategies and to generate regular progress and audit reports.
EMISSIONS logic makes good business sense, as well as good environmental sense. It not only helps companies to comply with the EU ETS, it also helps them save potentially millions of euros by informing and improving enterprise-wide decision making and by reducing the ongoing management, administration and audit costs they will face under the Scheme.
E3 International establishes presence in Europe
London - 8 December 2003
E3 International is delighted to announce that Dr Andy Kerr will be leading its climate change and sustainability practice in Europe.
Prior to joining E3, Andy was Director of Trading and Markets at Greenergy Carbon Partners Ltd, a large, independent and innovative European fuels firm, and Policy Director at The Edinburgh Centre for Carbon Management Ltd, a climate change consultancy and project developer of emission reduction and sequestration projects in developing countries. In recent years, Andy has been heavily involved with the emerging carbon market and providing strategic advice to various clients on climate change policy issues.
Andy brings to E3 International a wealth of experience in the climate change domain, and in coming months will be working with companies in Europe to address their strategic and operational response to the European Emissions Trading Scheme.
CarbonSim set to shake up the emerging global carbon market
Brisbane , Australia - 15 January 2003
E3 International's Director, Craig Windram, has launched CarbonSim - set to become one of the world's leading developers of greenhouse gas emissions trading platforms, simulations and software. In a move that will shake up the fledgling carbon market, CarbonSim today announced its official launch and its intention to roll out on-line greenhouse gas emissions trading platforms, simulations and management software on a global scale for markets in Australia, Canada, Europe and Japan. This announcement marks CarbonSim's entry in to the emerging global market in carbon that could conceivably be worth US$150 billion by 2012.
Carbon Ring Launched by Rothschild & E3
Sydney , Australia - 2 September 2002
In a move that will re-shape the fledgling emissions trading market, Rothschild Australia and E3 International today announced their intention to launch the Carbon Ring Consortium - an investment vehicle that will provide companies with an innovative way of learning about and understanding their risks in the new carbon market.
E3 International establishes presence in Sydney
Sydney , Australia - 12 March 2002
E3 International is pleased to announce the appointment of Srian Abeysuriya as the head of our new Sydney branch. Srian's extensive career includes 14 years in the New Zealand and Australian electricity industries, where he held senior corporate positions in strategic development, market management and energy retailing in both countries. Srian was jointly responsible for conceptualising and catalysing the recent initiative to establish the Australian Green Electricity Market - GEM, the world's first industry governed green e-marketplace for renewable energy.
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