Impact of Climate Change and Emissions on Trading Services

Introduction

In recent years, climate change has been recognized as the foremost environmental issue that must be addressed at all levels. Greenhouse gas emissions, a primary driver of climate change, have thus become a critical focus for companies worldwide. In response, over forty governments at the local, regional, national, and international levels have established carbon markets to address these challenges.

The most significant consequence of carbon trading is that an organization’s risk management now includes a component dedicated to evaluating and addressing the financial implications of climate change. As a result, it is essential for corporations to invest in developing a robust climate change and emissions trading strategy. This approach not only reduces risks but also ensures that opportunities from emissions trading are fully leveraged.

Objectives

At the end of the course on Impact of Climate Change and Emissions on Trading Services, participants will be able to:

• Identify and describe climate change and emission permitting services offered by an organization and their relevance.
• Justify the development of a climate change and emission trading program, including parameters for exposure acceptance.
• Propose a comprehensive management approach for internal emission reduction, credit acquisition, or credit creation to comply with the Kyoto Protocol.
• Develop practical skills through a Climate Change & Emissions Trading Workshop and apply each action step.
• Understand the role of climate change and emission trading services within their organization.

Training Methodology

• Model cases
• Case study method
• Workshop
• Supervised group discussions and thesis
• Group work
• Simulation

Course Outline

Unit 1: Scratching The Surface

• Introduction to the concept and definition of climate change
• Understanding global warming
• Identification of greenhouse gases
• Assessing the company’s vulnerability to the adverse effects of climate change
• Learning basic concepts of emission trading and carbon credits
• Overview of climate change and the Kyoto Protocol

Unit 2: Emissions Trading - System Design

• Exploring different approaches to emissions trading
• Benefits of emissions trading services
• Differentiating between open and closed schemes for trading emissions, with pros and cons of each
• Establishing baselines and emission exposure acceptance levels and criteria
• Key aspects of emission trading: banking, borrowing, and legally established emission limits
• Outlining the financial implications of climate change risk assessment and opportunity recognition
• Advanced methods to enhance the implementation of emission trading

Unit 3: Formulating a Management Policy

• Understanding the three main emission trading service provisions and their definitions
• Internal emission reduction strategies
• Methods for purchasing credits for compliance purposes
• Insights into investment in external projects for generating credits
• Evaluating cost-effective emission trading paths
• Creating a hybrid option portfolio
• Identifying opportunities for profitability from reduced emissions

Unit 4: Climate Change and Emissions Trading

• Studying the EU Emissions Trading Scheme
• Identifying sources of greenhouse gas emissions within operations
• Estimating climate change emission risks and their impacts
• Establishing and outlining an emissions trading policy and strategy
• Selecting an emissions trading service package
• Understanding the outcomes of emissions trading service packages
• Creating systems for monitoring and reporting on climate change and emissions

Unit 5: Monitoring and Recording Emission Reductions

• Criteria for monitoring emission reductions
• Understanding emission reduction monitoring and verification systems
• Registering emission reductions to promote carbon trading
• Successfully accomplishing validation of emission reductions
• Comprehensive details on carbon trading
• Key course topics summarized in a crisp Click Key Point summary