Scientists expect global warming to trigger increasingly frequent and violent storms, heat waves, flooding, tornadoes, and cyclones. In a report revealing how climate change is rising on the corporate agenda, Swiss Re said the economic costs of global warming threatened to double to $150 billion a year in 10 years, hitting insurers with $30-40 billion in claims. The substantial losses are in nature both ecologic and economic.

122 countries signed the "Kyoto Protocol" in 1997 to form an alliance and structure in the fight against climate change. The Protocol defines three flexible tools under which greenhouse gases can be reduced – the Clean Development Mechanism (CDM) and Emission Trading (ET) are two of them. The tools recognize the principle of emission reductions at minimum cost across national boundaries. In 2003 alone CDM projects made up 70 Mt of the 93 Mt in C02 traded around the world according to a Point Carbon report. Volumes of greenhouse gas emission reduction transactions have more than doubled for the second consecutive year. The volume of emissions traded has surpassed 100 Mio US$ and is estimated to reach 10 billion US$ by 2007.

China, the second largest polluter of carbon dioxide worldwide is expected to be a major potential beneficiary of the Kyoto Protocol's Clean Development Mechanism (CDM) because of its large and rapidly expanding energy demand, growth of foreign direct investment (FDI), heavy reliance on coal and low baseline level of energy efficiency. Eligible CDMprojects in the field of renewable energies, improvement of energy efficiency, fuel switching and reducing methane emissions can create carbon credits which form the bases of emission trading.

The earnings from the sale of the carbon credits can make a significant contribution towards financing a project (IRR). For companies selling, exporting or using climate friendly technologies, these developments are highly relevant - they open up new market opportunities for responsible sustainable investments, especially in developing countries and countries in transition like in the P.R. of China.

Hong Kong is an important international financial and service center. Given its strategic location and infrastructure and well positioned to become an important competence center for the development of sustainable climate developments. The Kyoto Protocol, even though it is yet to be fully implemented has made its point already. Its opportunities for the legal, finance, insurance, engineering and technical profession will be significant. This seminar will provide comprehensive insights into developments and provide project examples from Vietnam and the P.R. of China.

20 May 2004

IPPF – Independent Power Producers Forum PRESS RELEASE

The vital issue of impending climate change driven by Global Greenhouse Gas Emission Dominates CDM Seminar in Hong Kong organized by TUV Rheinland.

[Hong Kong · May 19th, 2004] Billed as "The Road From Kyoto to Fully-Funded CDM Projects" TUV brought together leading experts and decision-makers from Europe and Asia, "for what is truly a watershed event" advised eminent Power / Energy consultant Mr. Bill Ruccius, who also serves as a Vice Chair of the Independent Power Producers Forum (IPPF), one of the conference's endorsing organizations.

"Hong Kong should be Asia's Gateway to Global profits from emissions" advised Mr. Joel Laykin, Secretary General of the IPPF. "The Competitors exploiting this development will have an edge over those who are not aware of this issue. We can safely say that finally Hong Kong has pulled ahead of the curve on CDM awareness." Laykin added.

Leading academics, environmental experts, infrastructure and power generation executives, buyers, bankers, and consultants representing every concerned industry from shipping to alternative energy crowded into the Excelsior Hotels Marina Rooms for what turned out to a "Standing Room only gathering". Mr. Jorg Mahler, Manager Director of the TUV Rheinland, the conference host and organizer enthused "The response exceeded our expectations, and documents the interest of the private sector in a very sizeable business opportunity. The market for Global Green House Gas emission trading is projected to reach over US$ ten billion dollars by 2007. The conference has brought together the necessary parties to develop this business potential early, yet more action is needed to implement emission trading on a larger scale." Mahler added.

"With ADB, the UN and World Bank are finally in sync on uniform rules and guidelines, the road is clearing up for a great increases in commercial trading," advised Silas Cathardo, resident economist at the IPPF.

But there must be an appropriate legal framework for risk-free trading. A leader in the development of trading structures, Mr. Andrew Tan, Partner of Baker & McKenzie, Co-Chair of both AmCham (HK) and IPPF's "Emissions" subcommittees said "Recent changes in the EU Emissions trading scheme have created a huge market where credits from CDM projects in China can be sold into. Foreign companies are increasingly eager to participate in the PRC CDM projects. Hong Kong companies would be missing this golden opportunity if they do not begin to dedicate enough resources to participate in the PRC CDM projects.

The May 19th CDM seminar in Hong Kong was part of a four city road show organized by TUV Rheinland to raise awareness of the importance of meeting the challenge of the Global Greenhouse Gas emissions problem. The conference tour included Hanoi, Chengdu, Guangzhou along with Hong Kong.

Tessa Tennant
Chair, ASrIA

842 KB Speech

Read more from our News Page: http://www.asria.org/news/press/1087270013

Read more from our Conference Page: http://www.asria.org/news/events/1082710819