Germany's decision to phase out nuclear power over the next 11 years will impact carbon prices in the EU. The newsletter discusses various carbon market highlights including an increase in new CDM projects and issuance of CERs in May. It also provides updates on VER and CER prices globally and previews upcoming carbon events.

1. General Carbon Newsletter
MONTHLY CARBON NEWSLETTER JUNE 2011, ISSUE:04
Point of View
PROJECT HIGHLIGHTS
The CDM Pipeline saw 141 new
Germany's decision to shut all of the nation's nuclear projects entering in May (highest
power plants over the next 11 years comes in a sharp since 2007-08) exemplifying the
reversal to an earlier decision to extend the life of the 2012 rush amongst the project
plants. This decision will be a key element in the future proponents.
price of carbon in the EU. The decision lays the plan to
increase renewable energy generation in a big way. With The issuance of CERs in May
other nations likely to revisit their Nuclear plans, price was also high at ~19 MCERs
projections of carbon offsets in the next phase has turned
bullish again. France, meanwhile continues to rely on In May, six new PoAs entered the
nuclear power with two more nuclear plants under Pipeline taking the number of
PoAs in Africa to 20 or 22% of
construction, it is likely that the German decision will
the 92 existing PoAs. This is a
increase reliance on renewable power across EU.
much higher percentage than
Africa‟s 2.6% of all CDM projects.
EU ETS data on emissions for 2010 from the ~12,000
installations covered was ~3% higher than 2009, showing
that the economic recovery had not increased emissions
above the cap for the 2008-2012 trading phase. 2% of VCS VER PRICE WATCH
the installations did not surrender allowances covering all India, China:
their 2010 emissions by the deadline of 30 April 2011.
These were typically small and together account for less Renewables, EE
than 2% of emissions covered by the EU ETS, showing a Pre 2008 vintages
US$ 0.50- 1.00
high level of compliance. CERs accounted for 4.7% of all
Post 2008 vintages
surrenders in 2008-2010. Data suggests that CERs are US$ 1.00-2.75
being surrendered while EUAs banked for the next phase
indicating a soft pricing in the early years of the next Renewables, EE- Pre CDM
phase. Policy makers could use this to show that greater Pre 2008 vintages
emission reduction can be done at an economic cost. US$ 0.50-2.00
Post 2008 vintages
US$ 2.00-3.50
Best, Industrial gases, others
Pre 2008 vintages
Satish Kashyap US$ 0.25-0.50
Post 2008 vintages
US$ 0.50-1.00
Rest of Asia, Africa:
Renewables, EE
Pre 2008 vintages
US$ 1.00-2.00
Post 2008 vintages
US$ 2.00-4.00

2. Carbon Credits from Watershed Management Renewables, EE- Pre CDM
Pre 2008 vintages
US$ 1.50-3.00
Recently World Bank entered into an agreement with the Post 2008 vintages
Himachal Pradesh Government (India) for buying the US$ 2.00-5.00
carbon credits from the new forests being developed on
degraded lands under a watershed management program. Industrial gases, others
The main objective of this reforestation project in Pre 2008 vintages
watershed areas is to improve livelihoods and generate US$ 0.25-1.00
carbon revenue for the community. It is proposed to Post 2008 vintages
implement the project in 11 watershed divisions covering US$ 0.50-1.00
4000 hectares of land.
NEW METHODOLOGIES
While, reforestation activities sequester CO2 emissions
UPDATE
and also conserve the natural resources and are known to
be eligible under CDM to earn carbon credits. Watershed
management programme also helps in sequestration of Five new small scale
soil carbon through indirect activities like soil erosion methodologies were approved at
control, fertilizer leaching control etc. Electricity savings
EB 60:
from reduced use of pumps due to increase in ground
water level will also reduce carbon emission. But so far AMS-III.AT “Transportation
there is no approved methodology to assess credits from energy efficiency activities
watershed management activities in VCS, CDM and other
installing digital tachograph
such similar standards.
systems to commercial freight
transport fleets” The
methodology covers installation
Other Carbon News
of digital tachograph systems in
freight vehicles operating on a
Global CO2 market growth stalls in 2010 amid number of identified traceable
uncertainty
The global carbon market dipped 1.4 percent to $142 routes to improve driving
billion last year from $144 billion in 2009, mainly due to efficiency and reduce vehicle fuel
regulatory uncertainty, the World Bank said. consumption.
AMS-III.AU “Methane emission
Kenyan wind farm gets UN carbon credit approval
A 310 MW Kenyan wind power project has received reduction by adjusted water
approval to earn carbon emissions. Construction on management practice in rice
the 617 million euro ($873.7 million) Lake Turkana cultivation” The methodology is
Wind Power (LTWP) project is expected to start by
December and will be the fourth project in Kenya to for measures that result in
get approval under the CDM. reduced anaerobic
decomposition of organic matter
Carbon price may push up Kyoto bill
in rice cropping soils and thus
The NZ Budget disclosed a contingent liability for the
taxpayer of $1.5 billion under the Kyoto Protocol. That the reduced generation of
is down from $1.7 billion in last year's Budget, methane. It includes rice farms
reflecting the issuance of 10 million carbon credits to
that change their rice cultivation
eligible foresters in the interim
practice from transplanted to
Designing Targeted Financing to Build Africa's Carbon direct seeded rice.
Market AMS-I.J “Solar water heating
While global carbon markets are taking off, Africa lags
far behind with only 7% of the Clean Development systems (SWH)” The
Mechanism (CDM) global market share. The African methodology is applicable to

3. Development Bank (AfDB) is designing targeted installation of solar water heating
financing instruments, such as the Africa Carbon
Facility (ACF), to help build Africa's carbon markets systems in residential,
and attract more green investments to the continent. commercial, industrial, and
institutional facilities. It includes
California judge puts carbon market on hold
three options for determining
A California judge ruled on, that state air regulators
must halt the implementation of a cap-and-trade emission reductions for
scheme until they examine alternatives to emissions residential systems: a computer
trading to meet the state's aggressive greenhouse gas simulation approach; a metering
reduction targets.
approach; and a default value.
Canadian Solar to build 600 MW solar cell plant in AMS-II.L “Demand-side activities
China for efficient outdoor and street
Canadian Solar Inc said it would build a 600 megawatt
lighting technologies” The
photovoltaic cell production factory in Suzhou in
Eastern China, a day after the solar panel maker methodology is for replacement
announced plans to set up a wafer plant in the same of inefficient lamps and/or fixture
area.
combinations with efficient ones
Aviation Carbon Suit to Stir Trade Tension at Durban in public or utility owned street
Talks, Derwent Says lighting systems resulting in
A lawsuit by U.S. airlines arguing against inclusion in electricity savings. It also covers
the European Union carbon market probably will stir
tension at December climate talks, said Henry the implementation of lighting
Derwent, the International Emissions Trading controls.
Association president. AMS-III.AV “Low greenhouse
gas emitting water purification
Offsets „Crowding Out‟ Utility Demand for Carbon,
Orbeo Says systems” The methodology
The European Commission in Brussels, which covers water purification systems
regulates the market, plans to start selling 2013 for residential or institutional
permits late this year at the earliest. In the meantime,
utilities must use permits issued through 2012 for applications.
hedging purposes. Some generators start selling
power three years ahead of production. The carbon The EB has furthermore
program is the world‟s biggest greenhouse-gas market approved the first top-down
by traded volume.
developed large scale A/R
China says EU airline CO2 cap should protect poor methodology: AR-AM0013:
countries “Afforestation and reforestation
Plans by the European Union to impose a blanket
of lands other than wetlands”
carbon emissions cap on global airlines should be
adjusted to reflect the differences between rich and
poor countries, the head of China's aviation regulator EVENT WATCH
said.
Clean Power Asia 2011
UN clean energy scheme grows, 3,000 projects so far On 28-30 June 2011 at
The United Nations said its Clean Development InterContinental Bangkok,
Mechanism (CDM) is growing steadily, having Thailand. This is Asia's largest
registered 3,000 carbon cutting energy projects to conference & exhibition focusing
on the latest global and regional
date. clean power technologies,
"Growth remains steady. The number of projects projects and initiatives
beginning validation in the first three months of 2011
was 17 percent higher than in the same period in
2010," it said in a statement on Thursday.

4. EDITORS
IATA sees 10 airlines joining carbon scheme this year
Ten airlines are expected to start investing in projects Vinodini Chitrakaran,
this year that earn carbon credits under a U.N. scheme vinodini.c@general-carbon.com
to help offset emissions, officials said as Kenya
Airways became the first African carrier to enlist. Rameez Shaikh,
rameez.shaikh@general-
World Bank Auctions Adaptation Fund CERs carbon.com
The World Bank, as Trustee for the Adaptation Fund,
has completed an auction of 200,000 tons of certified GENERAL CARBON PTE LTD
emission reductions (CER) at Euro 12.52 per ton. 16 RAFFLES QUAY, #33-03 HONG
LEONG BUILDING,
SINGAPORE 048581.
UK Sets GHG Emissions Tone for Europe: Cut 50% by
2027
The United Kingdom set a binding target for cutting
greenhouse gas emissions 50% by 2027. This makes
the UK the first country in the world to declare a
"legally binding" target on greenhouse gas emissions
beyond 2020.
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disappointment gcnews@general-carbon.com if
Cement companies will look to introduce goals on
you have any queries or
water usage and biodiversity preservation, following
the disappointing outcome to a plan that would have comments or wish to contribute
addressed carbon emissions, said the Cement news and updates. We welcome
Sustainability Initiative (CSI).
your suggestions and
UN Proposes Changes to Hydrofluorocarbon- contributions.
Reduction Projects
A United Nations-overseen panel that helps set the
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PCRA to set up carbon credit aggregation centre in
Rajasthan General Carbon is a leading
The Petroleum Conservation and Research
emission reduction consulting,
Association (PCRA) plans to set up a Carbon Credit
Aggregation Centre (CCA) at the Pali textile cluster in sustainability advisory and
Rajasthan. investment firm with presence
This will be the first of 16 such CCA centres proposed
across Singapore, India, Sri
to be set up across the country and aim to introduce
and popularise Clean Development Mechanism (CDM) Lanka, Thailand, Philippines,
initiatives in MSME clusters under the Technology and Indonesia, South Africa, Nigeria,
Quality Upgradation Support scheme for MSMEs.
Ethiopia and Kenya.