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S t r a t e g y a n d m e c h a n i s m t o r e a c h c a r b o n n e u t r a l i t y
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WE ARE THE LAST GENERATION WHO CAN ACT
ON CLIMATE CHANGE.
WE WANT TO INSPIRE AND EMPOWER BUSINESSES TO MOVE TO A ZERO CARBON
ECONOMY.
LET’S CHANGE THE LEGACY AND BUILD A SUSTAINABLE
WORLD.
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Carbon Monitor, and the European Commission
6%
30%16%
48%
World Emissionsbn ton of CO2
EU 27 China USA Rest of the world
C A R B O N M A R KE T S
25%
13%
9%6%7%6%
34%
Germany Poland
Italy Spain
France Netherlands
Rest of Europe
52%
EU ETS Covered Emissions
Non EU ETS Covered Emissions
EU Emissions bn ton of CO2
EU ETS Emissions bn ton of CO2
W O R L D E M I S S I O N S
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4C A R B O N M A R KE T S
W h a t a r e t h e y ?
W h y d o t h e y e x i s t ?
I s i t a t a x ?
1
2
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C A R B O N M A R KE T S
C O M P L I A N C E
CARBON ALLOWANCES
“Surrendering”
CARBON OFFSETS
“Cancellation”
V O L U N T A R Y
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6C A R B O N M A R KE T SC O M P L I A N C E : E T S A R O U N D T H E W O R L D
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7C A R B O N M A R KE T SC O M P L I A N C E : T H E C A P A N D T R A D E S Y S T E M
The cap decreased each year -1.74% compared to 2010Offer: Auctions + Free allocation.
1 EUA= 1tn CO2
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8C A R B O N M A R KE T S
STOCK EXCHANGES COMPLIANT ENTITY
AUTHORITIES
STOCK EXCHANGESAUTHORITIES COMPLIANT ENTITY
AUTHORITIES
COMPLIANT ENTITYFree allocation
Auction(primary market)
OTC(primary market)
C O M P L I A N C E : H O W T H E M A R K E T O P E R A T E S
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C O M P L I A N C E : P R I C E D E V E L O P M E N T
0,00
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70,00
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EUAs spot price €/tonne©Vertis. ALL RIGHTS RESERVED
C A R B O N M A R KE T S
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10H A V E T H E C O M P L I A N C E M A R K E T C O N T R I B U T E D T O L O W E R E M I S S I O N S ?
The transition to renewable sources, the use of gas instead of coal, and the reduction in consumption have contributed to lowering CO2 emissions.
European Commission Verified Emissions Data
1,939 1,904 1,867 1,9081,814 1,803 1,75 1,755
1,6821,575
1,35
0,000
0,500
1,000
1,500
2,000
2,500
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Industrials Emissions Under the EU ETS
EU ETS Heat and Power Generation Emissions
EU ETS Emissions
Bn to
n of
Co2
EMBER 2020
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
EU-28 Power Generation Composition
Lignite Hard Coal Other fossil Gas Nuclear Renewables
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49-72%GHG emiss ion reduct ion i s requi red by 2050 as compared to 2010 leve ls to keep below 2 °C temperature increase accord ing to the F i f th Assessment Report (AR5) of the In tergovernmenta l Panel on C l imate Change ( IPCC)
C A R B O N M A R KE T SV O L U N T A R Y C A R B O N M A R K E T S
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EU CO2 reduction goal by sector by 2050
C A R B O N M A R KE T SV O L U N T A R Y C A R B O N M A R K E T S
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13How t o a c t on c l i m a t e ?
Carbon footprint is the calculation of an
amount of greenhouse gases released into the atmosphere as a
result of your organization’s
activities.
The next step is to plan and implement
mitigation measures. This typically includes
improvements in energy efficiency, green energy sourcing or fuel switch, optimization of logistics,
supply chain management, technological
innovation in production etc.
Carbon offsetting is the action of balancing out
an organizations emissions by investing in projects that reduce
emissions.
Carbon offsetting is the final step towards
carbon neutrality, when the actual emission
reductions are impossible OR too
costly.
MEASURE REDUCE COMPENSATE
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14M e a s u r e of c a r b on f oot p r i n tS C O P E
CO2CH4 N4C SF6
HFCsNF3 PFCS
Electricity, heat or steam purchased by a company
Controled by the company
Not owned or directly controlled by the Company but related to the Company’s activity
S C O P E 1 S C O P E 2 S C O P E 3
Facilities Vehicles
Purchased goods and
services
Purchased electricity, steam, heating and cooling for own
use
Fuel and energy related
activities
Waste generated in operations
Business travel & commuting
Business travel and
commuting
Transportation & distribution
Investments Franchises
End of life treatment of
sold products
Processing and use of sold products
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15C om pe n s at e C a r b on Foot p r i n t
CARBON NEUTRAL
CARBON OFFSETSAre the only International recognized way to reduce
global warming pollution to ZERO
Industrial /Utility / Vehicleemission and Clearcutting
Forests
Industrial /Utility / Vehicleemission and Clearcutting
Forests
CARBON EMISSIONS CARBON OFFSETS
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16C o m p e n s a t e C a r b o n F o o t p r i n t
C R E D I T T Y P E S
1TCO2E AVOIDED AND VERIFIED
=
1 CREDIT ISSUED
C R E D I T S T A N D A R D S
CER certified emission reduction
VER verified emission reduction
VCU verified carbon unit
REDD+ Reducing Emissions from Deforestation and forest Degradation
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17C o m p e n s a t e C a r b o n F o o t p r i n tP R O J E C T M E T H O D O L O G I E S
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2
1. Wind power
2. Solar Power
3. Hydro Power
4. Clean water and
sanitation
5. Forestry
6. Fuel Switching
7. Biogas
8. Biofuel
9. Biomass
10. Methane treatment
11. Energy efficiency
12. Transportation
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18E n e r g y A t t r i b u t e C e r t i f i c a t e s ( E A C s )
A digital instrument that verifies that one megawatt-hour of energywas generated and entered the transmission system from aneligible renewable source.
EACs allow to track the production, trade, distribution andconsumption of renewable energy.
The EACs do not represent energy itself (they are usually unbundledfrom the physical underlying commodity).
Contains information about the produced energy like:
a) The type of renewable production facility (e.g. hydro, wind, solar or biomass power plant, bio-methane or hydrogen production facility)
b) The production facility where the renewable electricity or bio-methane was produced (i.e. name of the plant, location)
c) The volume of energy produced (unit is one MWh).
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W h y b u y E A C s
Enables companies to claim the environmental benefits related to their energy consumption.
Flexible and cost-efficient option to meet your sustainable energy targets.
EACs are the most important instrument for reducing Scope 2 corporate carbon footprints.
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20E n e r g y A t t r i b u t e C e r t i f i c a t e s i n t h e w or l dEACs take different names/systems depending on the regionThe principles behind remain the same
RECS (Renewable Energy Certificates)
GO (Guarantees of origin)
I-RECs (Renewable Energy Certificates)
Countries with their own scheme
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21E A C l i f e - c y c l e
Of renewable electricity by a
verified and registered power
plant
The relevant issuing body issues the certificates to a
producer’s account according to the metered power
plant data
Certificates are traded within the relevant certificate scheme
as a separate commodity by
producers, retailers and consumers
To make a claim on the use of
renewable energy, the certificates
must be cancelled by the relevant
registry account holder that may
either be a power supplier, a
certificate trader or the consumer
itself
01 02 03 04
CancellationTradeIssuingProduction
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Sou r c i n g C a n c e l l a t i on
By existing (or another) electricity supplier that will cancel the GOs for, and on behalf of, the consumer
By a certificate trader (e.g. Vertis) that will cancel the GOs for, and on behalf of, the consumer
Most certificate registries charge a cancellation fee and some also for transfers (i.e. import and export)
GO markets have tenders and auctions organized by states, producers and consumers.
GOs trade between registry account holders in a bilateral OTC market that includes energy companies, certificate traders and renewable energy asset owners.
EECS GOs are mostly traded on RECS GO Standard Contract for Single Delivery
G U A R A N T E E S O F O R I G I N
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G u a r a n t e e s of O r i g i n ( G O s )
A GO is a digital instrument verifying the production and source of 1 MWh of
electricity
Traded within the Association of Issuing
Bodies (AIB) based on European Energy Certificate System
(EECS) rules
12 months validity
Transferrable from one AIB register to another
Main renewable technologies are wind, hydro, solar and biomass Countries outside of AIB: UK, Poland,
Hungary, Bulgaria and Romania. Their national GOs can’t be
transferred to any AIB registry
E N E R G Y A T T R I B U T E C E R T I F I C A T E S
Common rulebook but differences between AIB countries. Each AIB country has its own GO registry.
Cancellation can only take place in the AIB member registry where the
electricity was consumed.
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U S & C a n a d i a n R e n e w a b l e E n e r g y C e r t i f i c a t e s ( R E C s )
E N E R G Y A T T R I B U T E C E R T I F I C A T E S
A REC is a digital instrument verifying the production and source of 1 MWh of
electricity
Traded in North American tracking
systems of which the most liquid is the North
American Registry (NAR) run by APX
No expiry
USA & Canada considered as one single area for renewable energy.
Main renewable technologies are wind, hydro, solar and biomass
No restrictions in terms of REC account opening or cancellation
Ample supply of RECs in terms of volume & technology and good market liquidity
Green-e certification plays a fairly significant role in the North American market
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I n t e r n a t i o n a l R e n w a b l e E n e r g y C e r t i f i c a t e s ( I - R E C s ) E N E R G Y A T T R I B U T E C E R T I F I C A T E S
An I-REC is a digital instrument verifying the production and source of 1 MWh of
electricity
Traded within I-REC registry based in
Netherland. Covers countries in Latin America, Africa,
Middle-East and Asia
No expiry
Transferrable from one account holder to another within I-REC registry.
Main renewable technologies are wind, hydro, solar and biomass
No restrictions in terms of I-REC account opening or cancellation
Depending on the country, supply may be limited in terms of volume and technology
I-REC registry is gaining new members and the number of certified renewable
power plants is steadily increasing.
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26W h y c h o o s e V e r t i s ?
Trusted partner Specialized team
360º approach to sustainability Market expertise
We walk the talk Close to our clients
Pioneer in environmental finance markets. Over 20 years of experience.Regulated under MiFIDII.
Environmental compliance obligations Net Zero ambitions.
Carbon and plastic neutral company.We contribute to the development of sustainable aviation fuel in association with our partners.
With over 15 years of experience to help you navigate the challenges of the new sustainable era.
1.800 clients We understand singularity of their IndustriesHelp them operate in environmental markets.
4 offices in Europe.
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27T h i s i s u s
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28O u r Se r v i c e s
W H A T W E D O ?
N E T Z E R O A M B I T I O N SE N V I R O N M E N T A L C O M P L I A N C EIn order to tackle climate change emergency, authorities have set in place different policy
instruments, whose main purpose is to encourage industries to embrace less polluting practices.
1. EMISSIONS TRADING SYSTEM2. GREEN AVIATION REGULATORY CONSULTING3. ENERGY EFFICIENCY4. TRANSPORT FUEL EMISSION REDUCTION5. FLUORINATED GREEN HOUSE GASES
1. CLIMATE ACTION2. SUSTAINABLE AVIATION3. RENEWABLE ENERGY
1.5ºC. That’s the crucial figure. If global temperatures rise by more than this, it’s very bad news, it means an irreversible climate breakdown.
We all know the planet is in trouble, but compliance is no longer enough.
W H A T W E D O ?
B U D A P E S TB R U S S E L S M A D R I D W A R S A W
v e r t i s . c o m @ V e r t i s _ E Fv e r t i s - e n v i r o n m e n t a l - f i n a n c e
