Project Development

Carbon Life is also positioned within the market place to manage Carbon Funds, aligning your investment RRR / IRR against our extensive Carbon Portfolio support to provide you with the ROI desirable for your Carbon Venture.

A Carbon Project refers to a business initiative that receives funding because of the cut the emission of greenhouse gases (GHGs) that will result. To prove that the project will result in real, permanent, verifiable reductions in Greenhouse Gases, proof must be provided in the form of a project design document and activity reports validated by an approved third party.

Voluntary Mechanism

Carbon projects are developed for reasons of voluntary environmental stewardship, as well as legal compliance under a Greenhouse Gas Cap & Trade program. Voluntary carbon (GHG) reducers may wish to monetize reductions in their carbon footprint by trading the reductions in exchange for monetary compensation. The transfer of environmental stewardship rights would then allow another entity to make an environmental stewardship claim. There are several developing voluntary reduction standards that projects can use as guides for development such as VCS 2007, VER +, ISO 16064, ISO 16065, and GS VER, whilst in the US such schemes as the California AB-32 and the WCI exist to provide the same opportunity.

Any voluntary activity under the Voluntary schemes can be used with entities CSR Report or marketed to position their company as a market leader in the battle against Climate Change.

Compliance Mechanism

Carbon projects have become increasingly important since the advent of emissions trading under Phase I of the Kyoto protocol in 2005. They may be used if the project has been validated by a Clean Development Mechanism (CDM) Designated Operational Entity (DOE) according the United Nations Framework Convention on Climate Change. The resulting emissions reductions may become Certified Emissions Reductions (CERs) or Emission Reduction Units (ERUs) under the JI Project Mechanism when a DOE has produced a verification report which has been submitted to the CDM Executive Board or JI Supervisory Committee.

An entity whose greenhouse gas emissions are capped by a regulatory program has three choices for complying if they exceed their cap. First, they could pay an alternative compliance measure or "carbon tax", a default payment set by the regulatory body. This choice is usually the least attractive given the ability to comply by trading.

The second option is to purchase carbon credits within an emissions trading scheme. The trade provides an economic disincentive to the polluter, while providing an incentive to the less polluting organization. As fossil fuel generation becomes less attractive it will be increasingly unattractive to exceed a carbon cap because the financial disincentive will grow via market forces. The price of a carbon allowance would go up because supply would decline while demand stays constant (assuming a positive growth rate for energy consumption).

The final option is to invest in a carbon project. The carbon project will result in a greenhouse gas emission reduction which can be used to offset the excess emissions generated by the polluter. The financial disincentive to pollute is in the form of the capital expenditure to develop the project or the cost of purchasing the offset from the developer of the project. In this case the financial incentive would go to the owner of the carbon project.

Carbon Life understands that it is important for us all to join the fight against Climate Change but believes that each and every company or individual should be provided with the resources and expertise to extract the true value from their Environmental practices, allowing them to enjoy the maximum reward for their initiative and endeavour.

For further information to help you understand the opportunities that exist for your company please email us at info@carbonlifeltd.com