ECONOMIC IMPACT OF CARBON TRADING ON THE GLOBAL ECONOMY

Education

It all starts with Education. To address emissions or climate change we must raise public awareness. For this reason CXI has developed a program of Education. We are working with government and educators to create a practical delivery package designed to create a generation of 'Earth-Ambassadors'. This generation of young people will live with the results of our efforts and are best positioned to become tomorrow's ambassadors of change.

Our initial focus will be from Kindergarten to Grade Eight classroom activities. The package is specifally tailored to provide awareness of climate change issues and bring each student and their broader community in touch with their Carbon Impact, opportunities to mitIgate their carbon footprint while collecting measurable data which will support climate improvement initiatives. Each class will be given work assignments appropriate to their grade level. The assignments will allow parent and community involvement to further broadcast the message.

Data that results from these activities will be compiled in a generic database which can be made available to government, business and the community as a whole. This "Carbon Track" database will facilitate the tracking of progress toward a more beneficial relationship between the community and the environment. Key decision makers such as local or national governments will use this data in conjunction with their current data regarding large emitters to track overall progress toward a healthy environment. The community will use the data to create greater ongoing participation and awareness of climate change issues.

More senior classes will be  provided with instruction regarding certification of carbon credits and offsets from energy and forestry programs that would both address emissions and provide for the monetization of the social benefit that results. This program will operate closely with the recent announcement by the Government of Ontario to work within the Western Climate Initiative's Cap and Trade process alongside the Province of Quebec and California The benefit to the people and economy of Ontario is not only the return on each acre or megawatt under management but potentially thousands of jobs in carbon tracking and management programs. Forest Management and the resulting Ranger program will be developed in co-operation with institutions such as Trent University and the University of Toronto who are already active in this area. 

Our initial rollout will provide an educational video developed for junior school students including a teacher's classroom kit and a student workbook. This program will be very inclusive involving community and school co-operation. Data collection activities will begin right away, data for analysis will be available when school begins in September of 2015.

Have a look at this video "Climate Change is Simple: http://youtu.be/A7ktYbVwr90

SOME COURSE WORK FOR THE SCHOOLS WILL INCLUDE:

In the early years the student will be exposed to climate information as it relates to their day-to-day activities. In later grades the student will there will be more interactive assignments that involve more data collection. In senior years the students will have an opportuntiy to interact with the loval community and create a profile of the overall carbon footprint.

The important aspect of data collection is fundimental to this program. Large emitters are visible and must be addressed early but they normally represent about 30% of the problem. Our opportuntiy is to make visible on a personable level the 70% that remains. The bulk of emisisons relate to personal decisions that we make every day.

- Do I drive or walk?

- Should my home thermostat be set higher or lower?

- Shall I invest in more insulation?

The long-term impact of these daily decisions is what will shape our future and the future of our children. We need this data to make choices today that will provide the best future possible in 2050 and beyond. To that end we at CXI are building a customized version of the "My2050" climate tool designed by the Department of Energy and Climate Change in the UK. We have the ability to create a custom version of this tool for any juristiction. We intend to provide this tool to students in a familiar "video game" format that will engage and focus their interest. It is also possible for decision makers to use this tool to see the long-term affects the choices they are faced with today will have in 35 years or more.

A generic world view of the tool is available here: http://my2050.decc.gov.uk/

To exprience the global calculator, click here: http://tool.globalcalculator.org/globcalc.html?levers=22rfoe2e13be1111c2c2c1n31hfjdcef222hp233f211111fn2211111111/dashboard/en

Key Messages

The Ontario Ministry of the Environment and Climate Change has enacted programs that are intended to mitigate Greenhouse Gas (GHG) emissions. It is necessary to operate in co-operation with a number of other Canadian Provinces and American States. In order to highlight success and monetize the social benefits of this program a Global Carbon Exchange is being established in Toronto to act on behalf of all holders of certified emission certificates/allowances.

Background

The global carbon market rose by 15% to $65B in 2014 despite recent downward pressure.  This has been achieved in a very fragmented market that was influenced by a recessionary Europe and negative reports from Australia. As a result of global recognition of Ontario’s leadership regarding the Green Energy Act, Toronto is well positioned to provide a stable and effective marketplace that will attract significant global business. CXI, working with the pending Ontario legislation, intends to provide the stable marketplace, including legislated oversight and governance that the carbon market has lacked to this point.

Under UNFCCC REDD+ and other protocols a significant opportunity will be available to the governments and people of both developed and developing economies. Even a portion of the significant forests of the World represent an enormous economic potential. It will finally be possible to realize financial benefits from the many clean energy programs currently underway. This truly global approach recognizes the “one world” concept that states we all breathe the same air and that the forests of South America or Canada are the lungs of the planet and we share responsibility in that regard.

To grow one pound of forest requires the sequestration of approximately 1.5 pounds of carbon. Depending on the type of tree in question, an acre of forest is capable of producing up to 2 tons of new growth and securing 3 tons of carbon each year. Currently this carbon, if certified, would trade at between $10 and $20 USD per ton. Carbon Offsets resulting from clean energy initiatives such as Ontario’s FIT program alone could represent millions in generated revenue if monetized in this manner.

PROJECT ECONOMICS

The technology behind Forest Sequestration and other Carbon Capture and Storage (CCS) projects is well understood. As we near the year 2020 it will become evident how short the global emitters are from meeting agreed emission reduction targets. This will underline the need for collective global action. National economies will be forced to co-operate in order to meet or offset CO2 emission reductions.

As with any commodity, the low cost provider that offers the most reliable solution will have a distinct advantage in this market. CXI’s program of registered terrestrial carbon sinks intends to provide the lowest cost, most dependable solution. CCS projects require significant investment in technology and management while still posing the potential threat of unplanned large-scale release of the stored carbon.

Large-scale terrestrial sinks such as those proposed by CXI are capable of setting the low benchmark for cost per ton of carbon removed from the environment. In addition these projects offer a unique opportunity for the local economy. Jobs are created for the project ranging from high technology and management positions to lower skilled but higher volume forestry positions.

Many jurisdictions, particularly in the resource-rich areas of the world, have experienced a history of continually exporting raw materials or at best unfinished goods and not getting full advantage of profits from the sale and export of a finished product. A carbon certificate is singularly advantageous in this respect. It is created from the raw carbon resource to its fully finished state, all within the borders of the local economy. This will result in the generation of significant foreign exchange and provide a significant boost to the GNP of any active green economy participant.

Stay tuned for more developments...