Carbon 350 Ltd was formed in 2008 andwas initially funded with £40,000 via The Enterprise Investment Scheme. In total shareholders contributed £76,000 to the development of Carbon 350 up to end 2012.
Carbon 350 began trading as Broker of Emission Contracts from Clean Development Mechanism Projects. It completed its first transaction in May 2010 (a Municipal Solid Waste Anerobic Digestion Project based in India and sold to a Oil Major). This was quickly followed by a 24 MW Large Hydro Electricity Project based in China.
In 2011, Carbon 350 began to operate as an Executive Developer of Clean Development Mechanism Projects. Thus Carbon 350, was responsible for identifying suitable projects, carrying our primary due diligence, facilitating third party due diligence, finding suitable buyers, negotiating and executing Emission Reduction Purchase Agreements (ERPA’s) between the parties, gaining accreditation of the project through the Department of the Environment in the United Kingdom or the NRDC in CHina and managing the accreditation process via UNFCCC Approved Designated Operational Entities, supervising registration of the project with the UNFCCC and subsequently managing the issuance of Emission Assets through the United Nations and sale of the assets to the purchaser
As of November 2012, Carbon 350’s development pipeline contains over 25 Million Certified Emission Reductions, from 22 Clean Development Mechanism Projects.
Carbon 350 sole focus has been the development of Certified Emission Reductions which are produced through the Clean Development Mechanism of the Kyoto Protocol or through the National Reform and Development Commission in regard to projects registering for the China’s domestic Emission Trading Scheme. Registration of these project occurs via The United Nation Framework Convention on Climate Change Secretariat or the NRDC.
Because many developing countries have utilized UNFCCC Processes for their own emissions trading and crediting mechanisms, we have based the text below on UNFCCC processes.
CDM Projects are awarded emission reductions based on the number of emission reductions they produce versus a specific baseline employed in the country or origin. In normal circumstances that baseline is developed though the amount of emissions needed to produce a fixed amount of energy utilizing coal as a fuel source. Countries that produce their electricity by cleaner means generally have a lower baseline. Thus, countries that are “least green” have most incentive to reduce their emissions.
The projects are awarded their Certified Emission Reductions over a crediting period of either 10 years or 3 * 7 Years, when at the start of each crediting period new calculations must be done to create the baseline. The projects then produce Certified Emission Reductions, which represent a reduction of 1 Ton of CO2, that would have polluted the atmosphere and as a result of the project, does not. Hence Certified Emission Reductions.
Certified Emission Reductions produced via the United Nations are seen as the highest quality of emission reduction for a number of reasons:
1. The United Nations are in effect the guarantor of the emission reductions
2. The United Nations does not favour one nation over another
3. The United Nations can be trusted to ensure a fair market can be created for Nations to base their emission reduction strategies on.
United Nations Certified Emissions Reductions are designed to act as arbitrage units within a global emissions trading scheme. This is because all nations see the United Nations as independent. Thus, in years to come, it is most likely that it is the Certified Emission Reductions that provides the world with a Global Carbon Price.
Technologies / Trading
There are currently 209 Approved Methodologies for demonstrating emission reductions to the UNFCCC. These can broadly be split into 8 different categories as follows:
Number of Project
Percentage of Total Projects
CERs Issued (000)
Percentage of Issued CERs
HFCs, PFCs, SF& & N2O reduction
Renewables (Hydro, Wind, Solar, Hydro
CH4 reduction & Cement & Coal mine/bed
Afforestation & Reforestation
Source: Unep Risoe – http://www.cdmpipeline.org/