4. Definitive Evidence of Rapid 1.2 ° F Temperature Rise over the Last Century

5. Carbon Dioxide Concentrations are low in glacial periods and higher in warmer interglacial periods However, concentrations now are higher than at any time in the last 450,000 years. In the insert is the dramatic growth over the last 50 years.

7. Adding Climate Model Projections for the next hundred years:

9. World Greenhouse Gas Emissions

10. Kyoto

29. New Funds Development Bio Carbon Fund C F Carbon Finance Products of the World Bank

30. How the Funds Work Industrialized Countries and Companies Host Countries and Communities $ Finance $ Technology Finance PCF Payment on delivery CO Equivalent 2 Emission Reductions Other project funding

31. Development + Carbon = Carbon with a human face

35. Harnessing the carbon market to sustain ecosystems and alleviate poverty

37. BioCF Kyoto-Eligible Examples Afforestration/ Reforestration CDM & JI Countries Sustainable Forest Management JI only JI only Reduced tillage

39. BioCF CDM Host countries Landscape Management Revegetation Soil Carbon Management

43. What is Emissions Trading ? Intention : Re duce emissions from industry overall Companies in certain energyintensive industries are issued with permits for the amount of carbon dioxide they may produce each year. Companies wanting to produce more must buy permits from cleaner businesses with spares. Sometimes businesses are given fewer permits than they ”actually” need, they are thereby forced to either reduce their carbon output or buy spare permits from ”cleaner”businesses.

44. A new asset, a new world The man who built the markets for Emission Trading, Richard Sandor. The story really started in 1991. Richard Sandor, chairman of Climate Exchange, attended the Earth Summit at Rio. Scientists and environmentalists laid out the issue of climate change. After a lot of effort Richard Sandor managed to collect money and to convince and get the Chicago Climate Exchange (CCX) off ground as a platform for trading voluntary emissions reductions. This was a part of an libertarian experiment to test the ability of market forces to drive down emissions without government intervention

57. Buyer’s side How Carbon Trading Operates Emissions target Purchase of allowances Host country benefits from technology and financial flows $ $ Domestic action Purchase of ERs is supplemental to domestic action Baseline emissions Baseline Scenario Seller’s side (Host Country) Emission Reductions (ERs) Project emissions Project Scenario ER Purchase of ERs

59. Growth of the Carbon Market Mil. USD 2006 2007 2008 Compliance Markets 31,165 63,770 117,084 Voluntary Markets 70 265 499

61. THIRD PHASE of the emmission trading scheme, the need for clarity for investment decisions long time ahead. Markets now price carbon and this has created the opportunity for the private sector to efficiently support investments to reduce emissions. ” If companies are going to be able to make accurate decisions on investments in cleaner, but more expensive generation in future, the key element is a stable and transparent European carbon price well beyond 2012” , Sam Laidlaw chief executive of UK based (electricity)generator Centrica. State and trends of the Carbon Market in 2006