Carbon Finance and Emission Trading in Mexico: Building Lessons from the CDM Experience and FOMECAR (Mexican Carbon Fund)

A more general lesson from the past decade is that climate policy and carbon initiatives such as ETS and carbon pricing are not static concepts, but are instead constantly evolving and building upon previous experiences. The vision of a single, top-down global trading system has shifted toward the reality of various single and regional trading system programmes. Building a national emission trading system in Mexico will surely pass through processes and experiences that the country has somehow undertaken from the Kyoto Protocol (KP) in 2005, particularly with the Clean Development Mechanism (CDM), the Mexican Carbon Fund (FOMECAR) and their legacy. Additional design elements or provisions must be prepared under the new ETS in Mexico: regulation will possibly include definitions, scope, compliance obligation, legal procedures and other necessary provisions such as the allocation of permits. However, in order to start the process, important questions on financing the initiative and accompanying the development of an ETS will go through a finance support scenario. Thus, who is going to finance the starting process for allocating emissions, financing bonds and other design issues for the implementation of the Mexican ETS? Who will be financing and offering technical cooperation to follow up on eligible projects for the ETS and who will be supporting education and information activities about ETS implementation? Those and other questions will be addressed in this article, in the light of international and regional experiences.

On Innovation Research of Carbon Finance under Intermediate Business in Chinese Commercial Banks

At present, carbon finance business is single relatively in Chinese Commercial Banks, commercial bank little involved in intermediate business of the intermediary business for carbon trading and carbon financial derivatives, should expand carbon finance business under intermediate business actively, such as: as the consultant and training division of CDM project, guide and train the enterprise to develop the action of project investment correctly; as Carbon Bank, provide customers with carbon asset management services comprehensively; provide customer services with carbon trading factoring, carbon emission guarantee, carbon fund hosting and credit enhancement and other services; design and develop the carbon financial derivatives related of carbon emissions and so on. The paper will analyze the innovation of carbon finance under intermediate business in commercial bank.

Examining possible relationship between carbon finance availability and growth of wind energy

This paper evaluates the possible relationship between carbon fund availability and the growth of wind energy. This has become apposite considering global quest for renewable energies as a veritable option for carbon reduction and sustainable development. Whilst some extant literature blames delay in climate policy as an obstacle to green energy, others regard carbon finance availability as a booster to renewable energy. Raging argument is that similar to any other investment, renewable energy finance availability may mar or catalyse growth in renewable energy. Consequently, in this paper, a conceptual overview of carbon finance and renewable energy is undertaken and a test of the relationship between the World Bank carbon finance availability and wind energy growth is conducted. The result indicates a significant positive relationship between World Bank carbon financing and global growth in wind energy. The paper thus concludes that aside from policy options, renewable energy financing seems to be a contributory catalyst that may spur improvement in global renewable energy. The paper highlights that achieving green economic development in developing countries would depend, not only on climate policies alone, but also on sustainable financing. Hence government and private sources of funding is very desirable in achieving global green economic development, most importantly, for developing economies. The paper thus offers a research agenda on awareness creating for local and international sources of green energy for developing countries.