200 individuals each year are selected each year as Young Global Leaders. They are chosen based on proven track record, leadership experience, ability to overcome adversity and commitment to society. They come from 71 countries – Alex is one of just 7 from Australia.

Former Young Global Leaders include:

• Shai Agassi, former CEO of Better Place
• Ed Miliband, Leader of the Opposition, UK
• Sergey Brin, Co-founder of Google
• Rahul Gandhi, Vice President of Indian National Congress Party
• Steffi Graff, Former tennis champion
• Stelios Haji-Ioannou, founder of Easygroup
• Bharrat Jagdeo, former president of Guyana
• Martha Lane-Fox, Co-founder of Lastminute.com
• Elon Musk, Chairman, Tesla Motors

Alex was recognised for his achievements in building Climate Bridge into the company it is today. Climate Bridge is an international business dedicated to reducing greenhouse gas emissions, in particular by bridging China and the West. Alex has grown the company to become one of the largest project developers in the international carbon market, financing clean energy projects through the United Nations Clean Development Mechanism, Gold Standard and Verified Carbon Standard. Climate Bridge’s projects reduce global emissions by 7 million tonnes of CO2e every year, the equivalent of taking 2 million cars off the road.

Alex is well-known for his expertise on China, the carbon markets and clean technology. In 2009, whilst living in Shanghai, Alex was recognised in the “Advance Asia 50” list as one of the 50 most influential Australians living in Asia. Alex speaks fluent Mandarin Chinese and has lived in Australia, the UK and China. He is currently based in Melbourne.

The official World Economic Forum press release announcing 2013′s Young Global Leaders is at www.weforum.org/nr_yglc13_01

By Sarah Chapman, Head of Business Development, Climate Bridge Pty Ltd

In 2013, the Australian carbon market will be dominated by two major external factors – the Australian general election, and the state of the international carbon market (particularly the EU ETS).

The general election has just been called for September 14^th. If the Labor government holds power, the Carbon Price Mechanism will go ahead as legislated, with emissions trading starting in 2015. If the Opposition win, Tony Abbott has vowed to repeal the “carbon tax”. A repeal of the legislation would have to pass both houses, and electoral maths means the Coalition are very unlikely to gain control of the Senate.  Abbott would likely have to use a “double dissolution”, a constitutional procedure involving complete dissolution and re-election of both houses. It would be an extraordinary political gamble to voluntarily give up power and go back to the electorate over an issue the Australian public is no longer particularly exercised about, but Abbott has been so clear in his intentions that he may have little choice but to try.

The Australian carbon market is highly exposed to the EU ETS, which is currently in a state of huge flux. From 2015, Australian companies can use up to 50% international allowances to meet their targets, of which up to a quarter can be green CERs or ERUs. The Australian Carbon Unit (CU) price is forecast to track the EUA price, which are currently trading at record lows – €3.79 (AUD$4.90) on 30^th January. This is in sharp contrast to the floor price of AUD$15 which was scrapped in order to link with the EU.  However, if efforts for structural reform in Europe are successful, the EUA price could shoot up to double digits overnight, dragging the CU price with it.

For Australian compliance buyers figuring out their hedging strategy, this uncertainty creates both challenges and opportunities. Many power generators and users hedge power 2-3 years out. Naturally they’ll want to hedge the carbon element of this in the same way, so we expect significant demand for forward purchasing in 2013 with expiry dates in 2015-6. Other companies are keen to cap their future exposure by taking advantage of record low prices in both the EUA and CER markets.

EUAs will be the unit of choice for most buyers in 2013, as they are effectively “Abbott proof”. The Liberals have claimed they will not compensate holders of Australian CUs if the scheme is scrapped and they become worthless, while an EUA will still have value in Europe. We expect to see Australian companies using international units for 100% of their hedging requirements, knowing that they can swap the extra 50% EUAs back to CUs in 2014/2015 once the political risk has passed. For this reason, we’d expect to see a spread opening up between EUAs and CUs. We also expect compliance buyers to make full use of their CER allowances – prices can’t go much lower.

The picture is quite different for Australian Carbon Credit Units (ACCUs – from Carbon Farming Initiative (CFI) projects), which are already eligible for compliance use. Demand greatly outstrips supply, and there is no likelihood of this changing even in the most optimistic supply scenario. Prices for 2013-5 will remain close to the fixed carbon price (AUD$23 in 2012-3). ACCU prices are not particularly affected by the election, as the CFI has bi-partisan support. However, development of new CFI projects is severely restricted by the low EUA price. Many potential CFI projects are not viable at such prices, so supply is likely to be limited beyond those that have already been constructed.

2013 will be a crucial formative year for the Australian carbon market as systems, expertise and common practices develop. By the end of the year much of the political uncertainty should be resolved and we should move to a more stable, more mature market.

Climate Bridge Pty Ltd is regulated by the Australian Securities and Investments Commission and holds Australian Financial Services Licence number 427102. Any advice provided is general advice intended for wholesale clients only.

Project number 80 is Guangxi Daxin Xialei Small Hydropower Project. This is a 12.5 MW run-of-river hydro power project, in the mountains of the Guangxi Zhuang Autonomous Region. In the next valley, just 5km away, is the world famous Detian (Ban Gioc in Vietnamese) waterfall which separates China from Vietnam.

The project provides renewable electricity to the local grid, and has materially improved the electricity supply available for the local community.

All project details can be found on the UN website: http://cdm.unfccc.int/Projects/DB/LRQA%20Ltd1353407666.9/view

The Gunpengyang project is situated in Yingjiang County in South-West China’s Yunnan province. Climate Bridge has worked with a series of energy companies and entrepreneurs in Yingjiang County to receive carbon finance under the CDM. For example, Climate Bridge recently registered the Nabang project, a larger hydropower plant in the area. Yingjiang county is situated on the border with Myanmar, and is home to a number of minority groups, including the Lisu, a Tibeto-Burman ethnic group.

This project is also Climate Bridge’s largest to date – it reduces greenhouse gas emissions by over half a million tonnes of CO2e every year.  The Yunnan Dehong Yingjiang Nabang Hydropower Station is located in a very remote and mountainous part of China, only a mile from the border with Myanmar. The local area has suffered from chronic electricity shortages, with 76% of locals describing the situation as “very serious”. The new hydropower plant will provide much needed clean power for the local community, as well as supplying the South China Power Grid. In the process it will protect the local forests from logging for firewood.

Project documentation and calculations for the Yunnan Dehong Yingjiang Nabang Hydropower Station can be found on the UNFCCC website.

CDM in Crisis – What is at Stake? - A project developer’s perspective on the past, present and future of the Clean Development Mechanism (CDM)

The Clean Development Mechanism (CDM) is the first and only truly international greenhouse gas mitigation compliance scheme, and has been a success in promoting clean energy investments in the developing world.

However it is currently in crisis – lack of ambition to tackle climate change by developed countries has lead to lack of demand for CERs and low prices.

The PD forum urges the following actions from the Parties at COP18 in Doha:

1. Recognise the increasing evidence of the link between GHG emissions and the frequency and severity of extreme weather events as contrasted against Parties’ levels of ambition

2. Increase demand for CERs to maintain and promote the CDM through the adoption of tougher caps for Annex 1 Parties and by extending the use of CERs to all Parties

3. Urge Parties to continue their support for the CDM as a key step in preparations for market readiness

4. Support proposals for a CDM Fund or Reserve Facility to purchase CERs from existing projects in the absence of sufficient global demand

About the PD-Forum

The Project Developer Forum (PD-Forum) is a collective voice to represent the interests of companies developing greenhouse gas (GHG) emission reduction projects in international markets under the Clean Development Mechanism (CDM), Joint Implementation (JI) and other carbon emission reduction schemes and programs.

The PD Forum is incorporated and its primary aims are to:
- improve the efficiency, legitimacy and functioning of the regulatory systems governing the development and use of emission reduction projects,
- influence policy developments and regulatory standards related to emissions trading and emission reduction projects,
- update and support independent standards and codes of conduct in order to further improve the integrity of the industry.

The PD-Forum is active in communicating with regulators at national, supranational and international levels and other project developers about the rules and regulations governing emissions trading and emissions reductions projects.

Climate Bridge Technical Director Dr Sven Kolmetz is Co-Vice Chair of the PD-Forum

The linkage of the EU Emissions Trading Scheme (EU ETS) and the Australian Carbon Price Mechanism creates new opportunities for Australian companies to engage with the international carbon market. Climate Bridge is ideally positioned to help them do this, having deep expertise in the European market as well as local Australian knowledge.

Climate Bridge Australia now offers:

• Spot, futures, option and forward trading in EUAs and CERs
• Live pricing during the Australian working day
• Pricing in AUD or EUR
• Live access to the European market during EU trading hours
• Top credit rated European counterparties backing OTC transactions
• A wide range of bespoke structured carbon products
• Expert advice to help liable entities design trading strategies and manage risk

“From 2015, Australian companies will be able to use international carbon units to cover up to 50% of their emissions liability.” said Alex Wyatt, Climate Bridge CEO. “They need to access the European market to do this – we are proud to be able to help them.”

Climate Bridge is a global carbon company with regional headquarters in Melbourne, London and Shanghai, and has been active in the European carbon markets since 2006.

Climate Bridge Pty Ltd holds Australian Financial Services Licence number 427102, authorising it to provide financial product advice for and deal in Carbon Units (CUs), Australian Carbon Credit Units (ACCUs), Eligible International Units (e.g. EUAs and CERs) and derivatives.

Lack of action in China is often used as an excuse by developed countries for minimal action on climate change. However this excuse no longer works. China’s climate change policies are now striking in their ambition, embracing both carbon markets and major plans for renewable energy roll out.

As a company that has been intimately involved in the Chinese carbon market since 2006, Climate Bridge’s international team has put together this paper for the Climate Institute to set the record straight.

The paper was released today at an event at Parliament House in Canberra, featuring speeches from Tony Windsor MP, Alex Wyatt, CEO of Climate Bridge, and John Connor, CEO of the Climate Institute.  The paper can be found here. The Climate Institute press release can be found here.

For media enquiries please contact Sarah Chapman in Climate Bridge’s Melbourne office on +61 3 8684 9933.

The Forum in Beijing was attended by a “who’s who” of the most influential people in the northern China clean energy market, comprising clean energy project developers, utilities, financial services companies and carbon market experts. The Forum featured two presentations on the nascent Australian carbon markets from members of the trade delegation, and also extremely enlightening presentations from Mr. Yang Wang from the China Beijing Environment Exchange and Mr. Yuteng Deng from the Tianjin Climate Exchange. These presentations were followed by a lively question and answer session convened by Alex Wyatt, CEO of Climate Bridge.

The Forum in Shanghai, held at the Portman Ritz Carlton Hotel, followed a similar format to the Forum in Beijing, and featured an outstanding presentation from Ms. Yi Sang from the Shanghai Environment Energy Exchange. The numerous high-level officials, project developers and carbon companies in attendance in Shanghai engaged in a stimulating and wide-ranging discussion encompassing all of the many opportunities for collaboration between the Chinese and Australian carbon and clean energy markets.

Climate Bridge has, for many years, prided itself on being the bridge of choice between the Chinese and Australian carbon markets, so it was Climate Bridge’s pleasure to host these two events on behalf of the Victorian government as part of its “Super Trade Mission” to China this week.