In this issues of Monthly Carbon Newsletter: -Cancun In A Nutshell -Start of the Indian REC Market -NAMAS Explained -Implications of the ban on HFC-23 and N2O Credits -And many more news & updates

1. General Carbon Newsletter
MONTHLY CARBON NEWSLETTER FEBRUARY 2011, ISSUE:01
Point of View
PROJECT HIGHLIGHTS
The Cancun Agreement was viewed by outsiders to be just
January 2011 sees the highest another agreement (along the lines of Copenhagen), but
issuance of CERs at 50 Mill insiders see this as the beginning of the formal process to
stitch together international climate policy. Significant
CERs.
resistance to the Kyoto Protocol was evident during the
meetings. However, CDM seems to be more alive now
The share of projects that were than before, with multiple signs of life over the last month:
automatically registered has
a. Process improvements and reduction in timelines for
increased to 78%.
issuance and registration.
Five new PoAs were submitted b. EU ban on HFC-23 and N2O credits in the next phase
in January raising the number starting 2013.
of PoAs to 76. Africa holds a
c. Increased buyer activity in the market for credits over the
large share of the PoAs (19%). next phase.
Cyber theft of carbon credits The Cancun Agreement also marks the first sign of a
formal shift towards a fragmented policy regime. The
resulted in a freeze imposed by
carbon market is likely to shift to the domain of bi-lateral
the EU on spot trades for over and multi-lateral frameworks, based on the differing views
two weeks in January. of leading countries at Cancun. A number of new jargons
have gained popularity post the Cancun meeting, NAMAs
Reliance Power’s Sasan UMPP
or Nationally Appropriate Mitigation Actions is the new star
in town.
was registered by the CDM EB.
The project is expected to Both, China and India have taken steps to start domestic
generate over 22 Mill CERs emission trading schemes. A number of environmental
commodities are being launched in India including
over 10 years. Renewable Energy Certificates and Energy Efficiency
Certificates. Significant regulatory updates on both these
A large natural gas project commodities are expected in the coming months. We are
(VPGL) from India enters really in the middle of interesting times at the domestic and
international levels.
request for registration. The
project is expected to generate I trust that you will stay connected and find our update
over 700,000 CERs annually. interesting.
Kind Regards,
Satish Kashyap

2. VCS VER PRICE WATCH Cancun In A Nutshell
India, China: Delegates from over 190 countries met at the 16th UN
Renewables, EE climate change negotiation (COP-16) in Cancun, Mexico
Pre 2008 vintages from 29th Nov - 10th Dec 2010. A set of decisions were
US$ 0.50- 1.00
Post 2008 vintages approved including an agreement on the long term co-
US$ 1.00-2.75 operative action (LCA) plan for climate change mitigation
Renewables, EE- Pre CDM and adaptation, with emphasis on “common but
Pre 2008 vintages differentiated responsibilities”. Key take-aways from the
US$ 0.50-2.00
Post 2008 vintages meet:
US$ 2.00-3.50 • Discussions on post- 2012 commitments under
Industrial gases, others Kyoto will continue; more clarity to come in at the
Pre 2008 vintages next COP meet in Durban end of this year.
US$ 0.25-0.50
• Annex-1 countries are to lead mitigation actions
Post 2008 vintages
US$ 0.50-1.00 with more stringent reporting of their efforts; they
will make the funds and technologies available to
non-Annex-1 countries.
Rest of Asia, Africa: • Non-Annex-1 countries will attempt to undertake
Renewables, EE supported and non supported Nationally
Pre 2008 vintages
US$ 1.00-2.00 Appropriate Mitigation Actions (NAMAs).
Post 2008 vintages • Financing options will be explored for projects
US$ 2.00-4.00
under Reduction in Emission from Deforestation &
Renewables, EE- Pre CDM Degradation (REDD).
Pre 2008 vintages
• By May 2011, a report is expected from developed
US$ 1.50-3.00
Post 2008 vintages countries on the status of the USD 30 billion fund
US$ 2.00-5.00 committed at Copenhagen; the action plan on
Industrial gases, others access to the finance by the developing countries
Pre 2008 vintages for combating climate change will also be
US$ 0.25-1.00
Post 2008 vintages provided.
US$ 0.50-1.00 • The Green Climate Fund is to be established as
the operating entity for the financial mechanism
under the convention.
• Cancun Adaptation Framework has been initiated
with support from developed countries, for
adaption related activities at various levels with
specific focus on LDCs.
• A technology mechanism would be operational by
2012 for accelerating the development,
deployment and diffusion of technology to the
developing countries.
• Carbon Capture & Storage (CCS) in geological
formulations is granted eligibility for inclusion in

3. CDM; the modalities and procedure are yet to be
elaborated.
• Several reforms are to be undertaken within CDM,
including standardized baseline for new projects,
CDM EB NEWS
loan schemes for projects from the poorest
The proposed agenda and
countries, and establishment of an appeal body.
annotations for the fifty-ninth
Read More- Carbon Markets Post Cancun:
meeting of the CDM Executive
Possibilities and Expectations
Board, 14-18 February 2011,
are available now.
Start of the Indian REC Market
The report of the twenty-ninth
meeting of the CDM Small
India launched the Renewable Energy Certificate
Scale Working Group (SSC
Mechanism on 18th November 2010. The mechanism
WG) released.
allows renewable based power projects to be accredited
and registered for receiving Renewable Energy
Call for experts: opportunity for
Certificates (RECs) which are then tradable through Power
ad-hoc work on CDM.
Exchanges. Most states have announced Renewable
Purchase Obligation (RPO) targets which is the
percentage of renewable based power which is to be
EDITORS
Vinodini Chitrakaran, supplied to the grid. The obligated entities within the states
vinodini.c@general-carbon.com (power distribution companies -DISCOMs and large end-
consumers) can cover any shortfall in achieving their RPO
target, by purchasing RECs from RE generators. One
Rameez Shaikh,
REC is equivalent to 1 MWh of renewable energy injected
rameez.shaikh@general-
carbon.com into the grid.
So far, four projects from Gujarat and Chhattisgarh (3
biomass and 1 wind based power), with an aggregated
capacity 28.6 MW, have been accredited under the
mechanism.
There are 25 State Electricity Regulatory Commissions
(SERCs) in India out of which, 11 SERCs have finalized
the regulations for accreditation. Everyone now awaits the
establishment of the mechanism throughout the country
with clearer regulatory environment, price discovery and
enforcement.
Read More: Renewable Energy Certificates Registry of
India

4. NAMAS Explained
Nationally Appropriate Mitigation Actions or NAMAS are a
set of voluntary policies and actions individual countries
undertake as part of their commitment to reduce
greenhouse gas emissions. These are long term
sustainable development measures such as energy
efficiency, afforestation, industrial process efficiency,
development of green fuels, etc. NAMAS can be funded by
developed countries (supported NAMAS), or by the
developing country itself (unilateral NAMAS) or be
supported by the carbon markets (credited NAMAS).
NAMAS are viewed in the context of the developing
countries’ national and/or regional development priorities
and circumstances, which are enabled and supported by
finance, technology and capacity building from developed
countries. At Cancun, it was decided to set up a separate
registry for NAMAS. The selection of unilateral and
supported NAMAs as well as the submission of a NAMA
proposal to the UNFCCC, requires a close cooperation
and coordination of various ministries and institutions at a
national, regional and even municipal level. An important
strength of the NAMA concept when compared to a carbon
market mechanism is that a comprehensive long-term
view can be incorporated.
The Copenhagen Accord specifies some important
aspects regarding Measurement, Reporting and
Verification of actions (MRV):
1. Mitigation actions by developing countries shall be
communicated every two years via National
Communications to the UNFCCC.
2. MRV of unilateral NAMAs will be conducted
domestically.
3. Supported NAMAs are subject to international
MRV according to guidelines by the COP.
For more information or questions on NAMAS please write
to gcnews@general-carbon.com.

5. Implications of the ban on HFC-23 and N2O
Credits
The EU has proposed a ban on credits from HFC-23 and
N2O projects for use as compliance units within the EU
ETS, starting May 2013. HFC-23 and N2O are the most
common types of carbon offsets which contribute ~65% of
supply, mostly from China and India. The ban means that
EU compliance buyers will be able to use these credits for
2012 under the EU Emission Trading Scheme (EU ETS)
until April 30, 2013, but not thereafter.
As the global warming potential of HFC-23 is 11,700 times
higher than CO2, such projects deliver an exceptionally
large return to investors. The announcement marks the
end of the extraordinary profits from sale of HFC-23 and
N2O credits to several project developers in China and
India. The issuance of credits for these projects was
recently delayed by the CDM EB for close to nine months.
Some EU countries, such as Italy, Germany, France,
Britain and Poland, had lobbied hard for the start date to
be pushed back to May 2013 or later. The European
Parliament now has three months to comment on the
proposal, after which the commission will formally adopt it.
For more information or questions please write to
gcnews@general-carbon.com.
Other Carbon News
European Exchange Launches 2020 CER Contract
Chongqing Launches China’s first domestic Emissions
Trading Pilot
South Korean Parliament to Debate Carbon-Emission
Trading Bill in February
Emission Permits Theft Estimated at $37.7 Million

6. European Commission Extends Carbon Market Freeze
Indefinitely
Offset Ban Will Boost Demand for Africa Carbon Projects,
UN Says
Low-Carbon Energy Investment Hit a Record $243 Billion
in 2010, BNEF Says
Extra U.N. Climate Talks Set for April in Bangkok
U.N. Panel Says Has Cut Carbon Offset Backlog
Indonesia Delays Deforestation Ban
Carbon Sequestration: Capture Technology Faces a More
Hostile Environment
Canada Won't Jump Into Cap-and-Trade Carbon Market
On Its Own: Kent
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