Carbon Consulting

Carbon credit trading, or emissions trading as it is sometimes called, is poised to become the largest commodity market in the world. IFS is taking a special interest in how this market develops internationally and locally so we can best help our clients participate in this new trading system.

IFS provides a range of services including project development, carbon inventory assessment, emissions reduction and brokerage. IFS has a special relationship with New Zealands leading carbon brokerage and advisory firm Carbon Market Solutions http://www.carbonmarketsolutions.com/ which enables us to bring you world class expertise in this developing market.

To view Carbon Market Solutions website click here

IFS can assist landowners to obtain the value of the carbon stored in their forests. If you are a land/ forest owner interested in carbon farming click on the link above 'how to earn carbon credits from your land'.

Carbon Trading - The Background

Over the last 20 years global warming and climate change has become a major issue of concern for climate scientists and the worlds governments. There is now almost universal scientific agreement that global warming is being driven by human activities - in particular, the growing output of greenhouse gases (carbon dioxide, methane, nitrous oxide and some synthetic industrial gases) from coal, gas and oil fired power stations, motor vehicles and intensive agriculture.

The effects of global warming include an increase in the global average temperature which may lead to rising sea levels, altered patterns of agriculture, increased extreme weather events, and the expansion of the range of tropical diseases. The worlds response is the development of the Kyoto Protocol.

The Kyoto Protocol

The Kyoto Protocol is an international agreement to address global warming and delay climate change - it aims to reduce the total greenhouse gas emissions of developed countries (and countries with economies in transition) to a target of 5 percent below the level they were in 1990.

Carbon credit trading, also known as emissions trading, is a market mechanism designed to reduce green house gas emissions. It is one of the central tenets of the Kyoto Protocol. It allows countries and companies to buy or sell emissions reduction credits to meet their greenhouse gas (GHG) emission targets. For example, high polluting countries or companies can buy carbon credits (or emissions credits as they are sometimes called) from those countries or companies that are polluting less than their targets allow.

The Carbon Market

According to the 2008 World Bank update on the Carbon Market, the carbon market grew from US$64 billion in 2007 to an estimated US$126 billion in 2008.

The European Union Emissions Trading Scheme or EU-ETS is the largest carbon trading market; the other major markets are based in Chicago, North Eastern US and New South Wales Australia. The carbon market is international in scope and is currently one of the fastest growing financial markets in the world.

The New Zealand Emissions Trading Scheme (NZ - ETS) began on 1 Jan 2008. Initially the ETS will include the forestry sector and will be implemented in other sectors of the economy over an 8 year period.

New Zealand Emissions Trading Scheme (NZ-ETS)

The government has announced the introduction of the New Zealand Emissions Trading Scheme which was implemented from 1 January 2008. Business' will have an obligation to hold emission units that match their emission levels. The NZ-ETS will involve the devolution to land owners of both the credits and liabilities for forestry. For more information on the NZ-ETS including the implications for the forestry sector click on 'NZ emissions trading scheme' at the top of the page.