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The application of credit multipliers to international carbon offset projects
Conference presentation

The application of credit multipliers to international carbon offset projects

Graham Ashford
2011 University Research Conference Book of Abstracts, p.12
USC Research Conference, 2011 (Sunshine Coast, Australia, 18-Jul-2011–21-Jul-2011)
University of the Sunshine Coast
2011
url
https://www.usc.edu.au/View
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Abstract

Environmental Science and Management carbon credit multipliers carbon offset projects
The Kyoto Protocol, the only binding international instrument to reduce global greenhouse gas emissions, will end next year having produced only very modest reductions in emissions. The Protocol's Clean Development Mechanism which allows industrialised countries to gain tradable credits for reducing emissions in developing countries has not met it's goals of providing sustainable development benefi ts or green technology transfer to developing countries. Investment in carbon offset projects is concentrated in India, China and Brazil and has provided little benefit to the world's poorest countries. At the same time world's largest emission trading scheme, the European Union ETS, limits the degree to which companies with emission reduction targets can offset their emissions through projects in developing countries. The research uses economic modelling to investigate whether the application of carbon credit multipliers to Clean Development Mechanism offset projects could be used to improve sustainable development outcomes, improve geographic equity in mitigation investment, and provide additional atmospheric benefit. Carbon credit multipliers operate by reducing the number of credits that are produced relative to the number of tones of emissions achieved. The results of research conclude that applying carbon credit multipliers at differentiated rates could be used as a policy tool to alter the relative attractiveness of investments by project type or location in order to achiever specific development objectives. Further, for a given emission target, credit multipliers can produce additional atmospheric benefit, however at a higher cost than simply negotiating tougher targets. The results also conclude that credit multipliers could be used to achieve the EU's objective of having more reductions occur domestically at approximately the same cost as the current policy of placing a limit on the use of credits but with greater benefit for developing countries. The presentation will discuss the background and context of the research, describe the research method, explain the model outputs, and elaborate on their significance as a component of international climate change policy.

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