A Business Case for the Gold
Standard
Heidi Forbes
Gold Standard and the Clean Development Mechanism
Capacity Building Workshop 7th December 2006
About Tradition Environmental Products Desk

TFS have been active in the emissions markets in Europe since
2001, first in the UK ETS and then in the European Union ETS.
We also are active in the renewable certificate market

TFS has closed CDM transactions throughout the developing
world and in it’s capacity as brokers finds Buyers for CERs and
also investors in CDM projects.

In 2005 TFS awards including:
 Best Broker in Environmental Finance Magazine of EUETS, UK allowances and UK renewable certificate
 Best Energy Broker in the Energy Business Awards
 Silver award for Excellence in Emissions Markets in the
Energy Business Awards
The CDM Gold Standard
– what does it mean to the market?
The Gold Standard sets out a code of best practice on many
issues in the PDD to deliver real contributions to sustainable
development in host countries plus long term benefits to the
climate.
• Standardises a minimum level of contribution to
sustainability across projects worldwide
• Eliminates risk from fraudulent business practices in the
market; conservative calculations minimise delivery risk.
Issues have already arisen in India in relation
• Increases transparency across the whole CDM process,
negating need for further questions during the final stages
These best practices give the Gold Standard a distinct
advantage in quality and value in the market. Value
that results in better prices
The CDM Gold Standard – a win-win-win solution
Commands
higher
value
SELLERS
BUYERS
Benefits
from public
opinion and
lessened
risk
THE ENVIRONMENT
 Accelerates shift to greener technologies
 Balances local vs. global sustainability
 Well-managed growth of the carbon market to
preserve environmental integrity and asset values
Reducing reputation risk

Buyers do not want to purchase credits from projects where
their reputation is at risk – TFS example Malaysian Palm Oil
Project and large European Utility and avoidance of project
types in the market generally.

Reducing reputation risk increases value to Buyers and thus
increases value to Sellers through the price. The project value
is increased throughout the development chain.

Price signals are therefore more economically efficient as the
available capital for CDM development is channelled to the
most environmentally beneficial projects.
A CDM Gold Standard Example
– Chinese Wind Power Project
• The project will produce CERs through the generation of renewable
energy by a 45MW wind project in East China.
• Electricity generated will be supplied to the East China grid,
substituting electricity which is primarily generated by coal-fired
plant, thus displacing emissions.
• The first CERs will be generated from 1 July 2007
• The PDD is currently being developed
• It is currently working with the Gold Standard in the early stages of
development to ensure approval. A stakeholder consultation is being
completed in December 06.
• This project is expected to be the first CDM Gold Standard project to
be approved in China, and is expected to be widely publicized in
China and globally.
Contact Heidi Forbes
Office: +44 20 7726 4988
Mobile: +44 7834 600 499
[email protected]
www.tfsbrokers.com