Carbon Market

The explosive growth of the carbon market in the last 5 years has established it as one of the fastest growing financial markets worldwide. According to a World Bank report (“State and Trends of the Carbon Market 2011”), the market’s worth expanded to US$ 142 billion in 2010 from US$ 10 billion just 5 years prior to that. Some estimates predict a potential of up to US$ 1 trillion by 2020.

As climate change concerns grow more and more urgent, emission reductions will increasingly be sought in the most cost-effective geographies. The share of developing countries in global carbon markets, therefore, is set to increase further.

EVI has in-depth expertise, comprehensive experience and an established network in these markets, helping us to:

• Efficiently steer projects through the regulatory cycles of Clean Development Mechanism, Voluntary Carbon Standard, CAR or any other standard.
• Manage our clients’ carbon offset portfolios to obtain best value and mitigate risks.
• Provide access to the most secure portfolio of carbon assets to buyers and sellers to reduce post 2012 risks 

The carbon market consists of compliance (legally mandated) markets and voluntary markets. There are numerous rapidly evolving standards, procedures and geographical demands for different types of carbon credits.

Developing countries’ principal contributor to the compliance market is The Kyoto Protocol’s Clean Development Mechanism (CDM). It generates UN-certified credits from renewable energy, energy efficiency and other greenhouse gas mitigation projects. These credits are used by Annex-I countries of the United Nations Framework Convention on Climate Change (UNFCCC) looking to meet their emission reduction targets under the Kyoto Protocol.

A growing number of organizations in the USA, the European Union, Japan, Australia and other countries feel the need to proactively adopt voluntary measures to mitigate or offset their emissions, leading to exponential growth in the voluntary market. The voluntary market now encompasses more than 10 different standards, each with its own pricing, demand mechanism, and geography, which may be employed to certify projects. The most prominent of these standards are, Voluntary Carbon Standard (VCS), Climate Action Reserve (CAR), Gold Standard (GS), and Climate Change and Biodiversity Alliance (CCBA).

EVI is one of the leading players in voluntary market. We have transacted over 9 million VERs/ carbon offsets over the last 3 years.