This is a research paper presented in a conference

1. CARBON FINANCING
Dr. S. Uma Devi
Ms. R. Kiruba Nagini

2. Carbon Financing

3. Carbon : The Unitary Component
• Monetization of Carbon
• International Scenario
• Indian Scenario

4. Terminologies
• Carbon Pricing
• Carbon Credits
• Carbon footprints
• Global Carbon Fund of World Bank
• United Nations Framework Convention on Climate Change

5. Kyoto Mechanisms
• Cleaning Development Mechanism (CDM)
• Joint Implementation (JI)
• Emission Trading (ET)
• TWO PERIODS: 2008-2012, 2012-2020

6. Financial info on Carbon Trading
• 15 carbon initiatives worldwide
• 2012- $2.5 millions capitalized
• Q2 of 2016 - $42.3 trillions capitalized

7. Market Share of Carbon Trading
47.1
33.8
3.8 3.6 3.5 3.1 2.7 0.9 0.4 0.4
USA UK Australia Brazil Japan Canada China Rep.of
Korea
South
Africa
India
Market Share

8. Green Investment Schemes
• Buyers and Sellers
• Assigned Amount Units (AAU)
• Timing and Flexibility in purchase of AAUs.
• Requirement of Implementation Capacity
• AAUs for greening activities
• Carbon pricing and AAUs deviations
• Ensured Green House Gases mitigation

9. Investment Options
Bond
21.9%
Balanced-
mixed
18%
Guaranteed
0.2%
Real Estate
1.4%Money Market
11.8%
Equity
39%
Others
7.8%
INVESTMENT INSTRUMENTS

10. International Scenario
• EU Emission Trading Scheme – 28 countries, more than 14000 installations
• EEA Countries – Norway, Iceland, Liechtenstein
• Swiss emissions trading scheme – 450 companies
• Kazhakisthan cap-and-trade scheme – 178 companies
• South Korea Cap-and-trade system – 525 companies
• 9 US states – Regional Greenhouse Gas Initiative
• California’s cap-and-trade scheme – 500 companies
• Quebec’s Cap-and-Trade scheme: 80 industrial sites
• Australia’s Carbon Pricing Mechanism : 350 companies

11. International Scenario
• New Zealand Emission Trading Scheme
• CDM-JI Project Database : 100 and 18 countries

12. International Scenario At a glance

13. Carbon Financing in India
• Low Carbon Growth Study by World Bank

14. As a Financial Options
• Certified Emission Reductions
• Verified Emission Reductions
• Emission Reductions
• EU Allowances

15. Market Structure
• Carbon funds
• Compliance buyers
• Tenders for the purchase of carbon credits
• Brokerage firms
• Consulting firms
• Trading platforms and auctioning

16. Benefits of Carbon Finance as a Financial
Option
• Ecological Benefits
• Reforestation
• Eco-Friendly Systems
• Pollution combatant
• Soil Erosion and Soil Enrichment
• Water Economy
• Mineral Wealth and Economy
• Business Benefits
• Start-ups
• Asset Management
• Forums for Carbon Financing
• Academics and Research

17. Conclusion and Future Work
• Carbon Financing Consulting Firms
• Profitable in a period of time, rather not at present.
• Agri-based Researches will help