Carbon Expo 2007: With Record Number Of Participants, Market Developers Discuss 1000 Project Proposals

Cologne, Germany, May 4, 2007-- With more than 2,400 participants, among them 46 delegations from developing countries, 220 exhibitors and a record number of more 1000 carbon emissions reduction projects proposed by project developers from developing countries and discussed with investors from industrialized countries, CARBON EXPO 2007, confirmed its role as the main global platform for business and policy development of the carbon market.

According to the organizers-- The World Bank, the International Emissions Trading Association (IETA) and Koelnmesse-- of this annual trade fair and conference “ The fact that Carbon EXPO results not only in interactions on policies but in actual business deals between buyers and sellers of carbon emissions reductions has proved again to be its comparative advantage“.

The organizers emphasized that Carbon EXPO “is yet more evidence of a vibrant carbon market. It gives us confidence for the role it can play in significantly expanding financial flows to developing countries directed to stimulate a sustainable lower carbon growth path, allowing for cost-effective emission reductions for industrialized countries“

According to the latest State and Trends of the Carbon Market Report 2007, launched at Carbon Expo the volume of trading in emission credits has tripled in the past year, from US$10 billion in 2005 to US$30 billion in 2006. The World Bank study reports that the market is dominated by the purchasing and selling of emissions rights (European Union Allowances/EUAs) to the amount of almost US$25 billion; however the project-based market in developing countries and countries with economies in transition grew sharply to US$5 billion in 2006, more than doubling over the previous year. Since 2002, approximately $8 billion has flowed from wealthy nations to developing countries as a result of the Kyoto Protocol mechanisms.

According to Yanquin Sun, Deputy Director of Research from the National Development and Reform Commission, Peoples Republic of China “More and more players are engaging in the market. This is our fourth time attending the EXPO and each time we get more representation from industrialized countries . This is a good opportunity for the Chinese government and for Chinese companies to promote CDM in China“

The Clean Development Mechanism (CDM) of the Kyoto Protocol has resulted in 645 registered projects in more than 40 countries in the developing world, stimulating North–South investment and considerable emission reductions in the process. The mechanism is expected to result in emission reductions equivalent to two billion tonnes of carbon dioxide equivalent to the end of 2012.

For Pedro Matthei, Project Manager, Laja Hydropower, Chile, “We gained possibilities of exploring new ways of financing CDM projects through carbon trading off takers that are entering the field. The most significant challenge facing CDM projects in Chile is the cost of developing feasibility studies which can range from US$ 500,000 to US$1 million. In the case of the Laja Hydropower project, it would have been impossible without the support provided by the Spanish Carbon Fund of the World Bank“.

This year’s CARBON EXPO featured the most extensive conference programme since the initiative was launched in 2004. The greenhouse gas market was examined from every possible angle. Participants interacted with more than 170 keynote speakers. In eight plenary sessions, 22 workshops and more than 40 side events, market trends, future outlook and development possibilities were addressed. The organizers built a three track approach to tackle all aspects of the greenhouse gas market, through a Project Stream, a Traders Stream and a Global Stream.

Carbon EXPO 2008, the fifth trade fair and conference for the global carbon market will take place May 7-9, 2008, the organizers announced.

Source: World Bank

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