Taking on the challenge
Addressing climate change and moving toward a more sustainable environment have become every-day challenges for most of today’s society
Addressing climate change and moving toward a more sustainable environment have become every-day challenges for most of today's society
The Clean Development Mechanism or CDM is a recognised cost∞ effective solution to reducing emissions. CDM projects have been underway since 2005 and the value of the global carbon market now stands at $126bn. As at 26th June 2009, 1,691 CDM projects have been registered. Together, these projects should reduce CO2 by 1,700 million tons.
In-depth knowledge
EDF Trading has built extensive knowledge of the CDM market and expanded its involvement along key areas of the value chain. With the experience of having sourced reliable CDM projects in over 15 countries, its expertise includes an in∞depth knowledge of the UN’s approval process and the delivery risk inherent to every CDM project.
China project
EDF Trading is currently involved in more than 100 projects. It has worked with project developers across the world from Brazil to China, Russia, Korea, India, Malaysia, Mexico, the Phillipines, Thailand and Vietnam. Gaotang County, a major agricultural base in the north west of Shandong, has a thriving farming community producing rice and cotton crops.
Traditionally, the rice husks and cotton stalks have been disposed of as waste following processing of the crops. However, with the introduction of the biomass power plant, the waste materials can be sold and used as fuel for generating electricity. It is estimated that the plant will deliver 145,000 MWh/y of electricity to the North China grid and consume around 121,000 tons of biomass each year.
Vietnam project
EDF Trading is project participant to the first registered wind power CDM project in Vietnam. Located in the Tuy Phong District of Binh Thuan Province, Vietnam, the REVN 30 MW Wind Power Project will be the first commercial wind farm in the country as well as a case study for adoption of best practices in environmental management.
It is only the fourth CDM project in Vietnam to be registered under the CDM. The project involves the installation of 20 wind turbines with a combined installed capacity of 30 MW. All electricity transmitted from the project site will be distributed by the project developer, Vietnam Renewable Energy, to the Vietnam national grid.
The wind farm has taken delivery of the first batch of turbines and they are currently being installed. When fully commissioned, the wind farm is expected to produce a significant amount of renewable energy.
EDF Trading was one of the first commercial companies to have a registry account with the UNFCCC (United Nations Framework Convention on Climate Change). It is a strong counterparty with its own independent credit rating of A3 from Moody’s. EDF Trading launched the EDF carbon fund of almost ¤300m in November 2006 to diversify the EDF Group’s sourcing of CO2 allowances and enable it to meet its environmental commitments under optimum economic conditions.
Direct access
As the wholesale trading division of the EDF Group, Europe’s largest electricity producer, EDF Trading offers direct access to end users of carbon credits. While 95 percent of EDF’s electricity output is already carbon∞free, supporting CDM and JI emission reduction projects offers a cost∞effective way to offset the carbon impact of EDF’s power production.
A wide range of companies now regularly face challenges linked to the price of carbon. With a wealth of experience in the sector, established financial strength, efficient market access and a long∞term commitment to the emissions market, EDF Trading is well positioned to help you take advantage of the opportunities and mitigate the risks in today’s carbon market.
About the author
Francois Joubert is the Head of Corporate Development and was appointed to the EDF Trading executive team in 2008. He joined EDF Trading’s Origination team in 2000 and has led the company’s development across a number of areas, including the set up and management of EDF Trading’s emission origination and trading business. Prior to EDF Trading, Francois held a variety of roles within the EDF Group in the strategy division at EDF’s head office in Paris and as Financial Manager for EDF China based in Beijing.
Further information: www.edftrading.com
