CARBON MANAGEMENT & ADVISORY
CARBON MANAGEMENT & ADVISORY
- Corporate Carbon Management - Risks and Regulation
- Carbon Finance Solutions
- Carbon Offset Investment and Transactions
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Our Credentials
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Carbon Credit Capital works with large and small international companies to address their greenhouse gas emission regulatory needs and to develop additional sources of income through the use of carbon finance.
Project Types, Methodologies and Carbon Finance Structures
Carbon Credit Capital works on a wide spectrum of project types to earn carbon offsets. These include, but are not limited to: renewable energy (solar photovoltaic (PV), concentrated solar power (CSP), biomass, wind, small hydro and geothermal); industrial energy efficiency and co generation; methane capture in landfills, wastewater treatment systems; waste recycling; supercritical cycle in coal power generation; industrial fuel switch; new energy efficient technologies; transportation; energy efficiency in buildings and urban development. We work with private companies and government organizations in India and North Africa that recognize that all components of a new town can be designed to reduce energy consumption and greenhouse gas emissions. We consult on each phase of the design process, from site planning, infrastructure, to the selection of building materials, in order to optimize the opportunities for carbon finance under CDM and other standards.
Forestry and land management projects for carbon credits are handled by an affiliated company, CINCS LLC. Project types include: Afforestation; Reforestation; Reduced Emissions from Deforestation and Degradation (REDD); agricultural land management and improved forest management.
Carbon Credit Capital monitors business and policy developments in clean energy and GHG regulation in the regions of its operations. The team’s in-depth knowledge as well as legal, financial, technical, and investment experience offers clients and co-investors the tools necessary to make sound business decisions.
Carbon Credit Capital works on the development of new methodologies for carbon emission reductions measuring and monitoring. The process of obtaining approval for the application of a new methodology is complex and must be validated and approved by both a third-party validator and a separate methodology panel of a relevant regulatory body. CCC has experience with new methodologies in the sectors of waste recycling, building materials, energy efficiency and transportation.
Carbon Credit Capital works on Program of Activities (PoA) carbon finance structures. Once approved, a PoA provides a streamlined procedure facilitating the registration of a number of similar projects that meet specific program requirements. This framework allows significant savings in transaction costs and it can be beneficial especially for small or micro scale projects.
Clean energy micro installations can provide off-grid power to rural villages: We work with companies and state government agencies on the optimum design and program to implement. The key is cost and scale and to this end our advice includes best in class technology, self-financing including micro-loans and government incentives combined with private investment from companies that can benefit from distributing and supplying the equipment. Our core competency is the development of the carbon finance revenue stream to be distributed in a way that includes the rural population.
Highlights of Carbon Credit Capital’s credentials in Supercritical Coal, Solar PV and Waste Recycling:
Supercritical Coal
Carbon Credit Capital is one of the leading firms in supercritical coal CDM projects, with demonstrated and recognized expertise in this project area. CCC’s experts were at the forefront of the acceptance of supercritical coal as a CDM project type and this expertise is drawn upon in the Project Design Documents of the registered supercritical coal CDM projects globally. The company’s in-depth understanding of the technical and CDM-eligibility aspects of this project type can reduce project risk and protect the potential value of the carbon asset which, for a supercritical coal project, can be in the tens of millions of dollars.
Solar PV
Carbon Credit Capital is also a leading firm in solar PV for rural and commercial applications. Our expertise includes advisory and management of the carbon opportunities related to installations of solar PV hybrid system sin areas and applications where reliable grid electricity supply is a challenge. These projects avoid the consumption of fossil fuels by internal combustion engines, replacing them with clean, emission free electricity generated by solar PV technology.
Waste Recycling
Carbon Credit Capital works on developing carbon credit opportunities related to waste recycling and recovery of recyclable materials.
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Corporate Carbon Management - Risks and Regulation
- Carbon Management Solutions - we develop comprehensive carbon management plans that suit the unique needs of companies subject to greenhouse gas regulation. CCC recognizes that, in order to project costs and design an effective strategy, data collection needs to be streamlined and the results must be analyzed in light of the specifics of regulatory policy, government subsidies, incentives and financing requirements for capital improvements. In addition, in order to accurately predict a company’s future financial exposure the analyses of these costs needs to be integrated with a consideration of the availability of compliance options as emission allowances allocation, carbon offsets and/or renewable energy credits. CCC has developed an end-to-end carbon management approach to reduce the burden of such a task for small to medium-sized companies.
- Greenhouse Gas (GHG) Advisory - we assist companies in analyzing their GHG emission costs and risks related to national or state-level impending or current regulation. A growing number of companies in the U.S., the European Union, Japan, Australia and other countries are actively involved in reducing their GHG emissions. U.S. companies subject to California’s Assembly Bill 32 will soon be subject to a cap-and-trade system, and all companies in the U.S. that emit over 25K tonnes of GHG annually are required to report their emissions under the US Environmental Protection Agency (EPA) regulations. EU emitters have been subject to extensive GHG emission regulations since 2006.
- Comprehensive, Corporate Organization-Wide Strategies - we work on reducing overall carbon emissions throughout a company’s operations and supply chain. We evaluate the feasibility of GHG emissions reduction measures and identify opportunities for carbon offset projects. Our approach combines detailed technical assessments and a full analysis of the overall corporate wide GHG emission reduction strategy. CCC enhances its in house technical expertise by working with specialized engineering companies to provide support and verification on recommended solutions. This approach is being applied to companies in the U.S. and other regions of the world
- Corporate Cost-Benefit Analysis - we use a proprietary, quantitative system that evaluates the annual costs and compliance options associated with GHG emissions regulations. The system enables companies to plan and execute the optimum strategy for adapting to the implementation of a cap and trade regulation. The system provides companies with decision options on the use of allowances, capital improvements, changes in technology and clean energy.
Carbon Finance Solutions
- Carbon Finance Solutions - we provide offset project developers and investors with tailored carbon financing solutions. In countries where debt is expensive carbon revenues can enable a project to get developed. Depending upon the specifics of each project, we also source debt financing from retail banks or engage with international development banks. We develop the financial projections and then work with our co-developer or investor-company to determine the optimum financial package. We propose the project to the debt providers and work on all aspects of the application for debt finance. This is a specialized skill and requires knowledge of national banking policies in the countries where we work.
Clean Technology Companies - we advise clean technology companies on identifying carbon revenue opportunities in the design of their products and processes, introducing carbon finance as an additional revenue stream to support the commercialization of products. We work with startup companies worldwide, advising them on how their products or processes could earn carbon emission reduction credits. We develop and draft the new emission reduction measuring and monitoring methodologies necessary to validate and register the project with the appropriate standard and assist in incorporating carbon revenues into the value proposition of the product.
- Venture Capital and Private Equity Firms - we advise firms who are seeking to fund new clean technology companies on the impact of carbon regulation and carbon revenue opportunities on potential investments. Carbon finance can be used to enhance the cash flow for cash constrained start-up companies or be factored into the pricing of the product as a form of a “rebate”, helping VC and PE firms raise the capital needed to finance a new product or piece of equipment. CCC works on developing new methodologies to earn carbon finance, a critical component in the conception and technical development of energy saving solutions and processes.
Carbon Offset Investment and Transactions
- Carbon Offset Standards and Protocols
The carbon market consists of compliance (legally mandated) markets and voluntary markets. There are a number of evolving standards and protocols for different project types that involve differing procedures and geographical requirements for each type of carbon credit development. Carbon offsets provide cost-containment in the short to medium-term, and companies can derive multiple financial and corporate sustainability benefits from implementing carbon offset projects as part of their GHG mitigation strategy.
We manage accreditation under compliance and voluntary standards and recommend which to use after early-stage carbon offset feasibility assessments and consideration of a client’s offset and business strategy. We work with companies to identify and develop such projects under standards that fit each situation.
- Project Investment Opportunity Origination - we identify investment opportunities in both domestic and international carbon offset projects, also determining the best standard to use for credit generation, whether through the Clean Development Mechanism (CDM) or through one of the Voluntary standards.
Our technical, legal, policy and financial expertise is used by large GHG emitting companies in India and other regions of the world to identify carbon offset projects within organizations. We work with multi-sector companies and have the expertise to perform feasibility assessments on projects both at facility or organization level. We work with power companies - oil, gas, and coal; cement manufacturers, chemical, iron and steel manufacturers and forestry and agriculture businesses. Our experience in these sectors now supports a well-honed approach providing a company with the information they need to develop a short to medium and long-term plan for offset development and have a good understanding of the costs involved.
- Carbon Offset Project Development - we perform the necessary procedures to register a carbon offset project and manage the project development.
This includes, but is not limited to the following steps:
- The development of a Project Design Document (PDD) - i.e. a technical document that details the full scope of the project
- The analysis and assessment of the baseline parameters
- The evaluation of the additionally - i.e. Can one justify the project cost as above those of business as usual?
- The approval of local government, regulatory compliance and site-specific permits if required
- The validation and registration of the project by a third party auditor
- The monitoring and verification approvals
- The host country approval
- The registration of the project by the body that will approve the issuance of the credits - i.e. the UNFCCC for the compliance CDM process or the VCS for the voluntary process
We work with companies in two ways; we provide advisory and management services to ensure successful project registration and carbon credits issuance, as well as procure purchase agreements such credits. In addition, we can provide project management services both as a third party or co-investor in the project. Our own team and our expert partners in the countries where we work, oversee the site selection, planning, design, engineering and construction of projects. We perform this service for financial institution that are funding projects and/or provide this service for companies that are principals, but do not have the expertise to perform the work in-house.
By partnering with companies in the development of projects that are eligible for carbon finance, we provide aligned incentives for registering projects and ensuring the consistent delivery of carbon credits. Such “partnership” involves CCC assuming part of the risk to register the project and sharing the development costs, thus committing to the success of realizing carbon revenues. This approach is termed co-developer, not consultant.
- New Project Methodologies - we identify and draft new methodologies to meet the carbon offset registration criteria and secure regulatory approval.
For each new project type, it may be necessary to develop a new methodology, then submitted and approved to meet a standard under the UNFCCC or Voluntary system. This entails an initial feasibility assessment that must include the proof of additionality and a quantitative, financial and technical approach. Our team has been successful in the drafting and subsequent adoption of new methods in sectors including building materials, transportation, waste recycling and new technological approaches for power generation and distribution. There is a up-front cost involved for this specialized service, but the benefits can outweigh the costs if a new method is adopted worldwide, allowing a company to market a new technology in regions of the world that can benefit from carbon finance.
- Monitor Reductions - we report on emission reductions throughout the crediting period.
- Investment Advisory for Carbon Credits - we assist in negotiating flexible customized Emissions Reductions Purchase Agreements (ERPAs) to suit a client’s specific needs.
These may include up front financing for a portion of the project cost and/or funding for the project registration costs for projects, including third party validation costs and United Nations Framework Convention on Climate Change (UNFCCC) or other organizational registration costs.
- Credit auctioning - we optimize the bidding process for sale of credits through our international network of compliance and institutional buyers. We assist or lead in negotiating and finalizing Certified Emission Reduction (CER) or Voluntary Emission Reduction (VER) sale agreements.
- Credit transfer - we manage the carbon credit issuance and transfer process between the buyer seller and offset registries.
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