Friday, October 30, 2009

Carbonflow-The for Carbon Offset Transactions

Semantic Seed
on Thursday, 29 October 2009
by Janice Williams Oliver

“The World Bank, says Neal Dikeman, co-founder/CEO and Chairman of the Board for Carbonflow™, reports approximately $126 billion dollars in carbon offset transactions have occurred, of that only $500 million were in the USA.”  Carbon offset trading is very active internationally and at some point will gain greater traction in the USA because this year, [both the House and Senate are considering bills to reduce global warming pollution and transition to a clean energy economy].  …
The United Nations Framework Convention on Climate Change (UNFCCC) says “the central feature of the Kyoto Protocol is its requirement that countries limit or reduce their greenhouse gas emissions. … To help countries meet their emission targets, and to encourage the private sector and developing countries to contribute to emission reduction efforts, negotiators of the Protocol included three market-based mechanisms – Emissions Trading, the Clean Development Mechanism (CDM) and Joint Implementation.”
“CDM offsets comprise 90% of all carbon offsets traded worldwide,” says Richard Barber, Chief Technical Officer/VP of Engineering at Carbonflow™.   The UNFCCC further states, “CDM allows emission-reduction (or emission removal) projects in developing countries to earn certified emission reduction (CER) credits, each equivalent to one tonne of CO2.  These CERs can be traded, sold, and used by industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol.  The mechanism stimulates sustainable development and emission reductions, while giving industrialized countries some flexibility in how they meet their emission reduction limitation targets.”  …
“The projects must qualify through a rigorous, public registration and issuance process designed to ensure real, measurable and verifiable emission reductions that are additional to what would have occurred without the project.  … It is the first global, environmental investment and credit scheme of its kind, providing a standardized emissions offset instrument, CERs,” says the UNFCCC.
CDM uses three auditing companies in its approval process.  They are Det Norske Veritas (DNV) of Norway, SGS United Kingdom Limited and TÜV SÜD in Germany.  …
“Carbonflow™ provides unique browser-based products and services that empower any organization to manage and monitor greenhouse gas reduction projects on a secure multi-party platform. Employing HOpE™ (Hybrid Operating Environment) principles, Carbonflow™’s solution provides accessible technology to everyone – including those in developing countries with limited online access.”  … It takes 2 years for a project to receive approval using the current CDM process; Carbonflow™ predicts that using their software will cut the CDM process down by six months to a year.
Why does the future for Carbonflow™ look bright?  It is the only company working with CDM’s auditors to automate their process. It is likely the CDM system will be expanded to include the USA.  Or, the USA will create a separate CDM system.  In both instances, the CDM auditors will be consulted/used and Carbonflow™ will definitely benefit.
At first I thought Carbonflow™ was an enterprise carbon accounting company like … Verisae who includes Walmart as one of its customers.  There are over 40 carbon software companies in the marketplace today.  Large companies like SAP and Microsoft are purchasing them to get into the carbon accounting business.  Carbonflow™ appears to be ahead of the curve.  Neal says “Carbonflow™ has no competition.”  The existing carbon accounting software companies are used in-house for carbon measurement purposes.  Carbonflow™ provides a multi-party platform that coordinates CDM activities internationally.
What are the opportunities for entrepreneurs specifically in carbon software management/accounting and/or Cleantech?  “Cap and Trade will put a new cost in everyone’s supply chain.  It will be a 10 year exercise,” says Neal.  Multiple green jobs and opportunities will be created to satisfy this demand. …