March 18, 2008
Foreign Carbon Credits Are Golden
U.S.-based entities can benefit today from the carbon markets created by the Kyoto Protocol and the European Trading System (ETS), even though the United States has not ratified Kyoto. They can do so by investing in Clean Development Mechanism (CDM) projects in “non-Annex I" ” countries like Mexico, and then trading the resulting Certified Emissions Reductions (CERs) into the ETS at a current estimated value of $27 per ton CO2 equivalent. In addition, under the Lieberman-Warner Climate Security Act of 2007 (S.2191) as it passed the Senate Committee on Environment and Public Works, foreign-generated credits might be used to meet required allowances in the early years of the U.S. cap-and-trade program.
In this ELI Associates Seminar, expert Mexican attorneys, one of whom practices in the European Union, explained how U.S. companies can generate CDM credits, obtain certification under Kyoto, and then trade the CERs directly into the ETS. They described successful projects of this type, explain the Kyoto certification process, and identify advantages afforded by such investments in Mexico. This enlightening discussion informed the audience about how they can help their clients participate and profit in the $63 billion carbon market during 2008.
William Anderson, Williams Mullen
Gabriella Merla, Goodrich y Riquelme, Paris
David Brill, Goodrich y Riquelme, Mexico City
Gabriella Merla PowerPoint
Please click here for more information on the
Understanding Climate Change Law seminar series.