The Kyoto Protocol allows for the development of an international emissions-trading system. This led to the formulation of various mechanisms, namely Joint Implementation (JI), the Clean Development Mechanism (CDM) and Emissionstrading (ET). Given the potential emission-reduction targets in 2012 for developing countries, and in particular for South Africa, the objective of this study is identifying the current implementation of the CDM project cycle steps, as well as assessing the appropriateness of them. Constraints, bottlenecks and opportunities, are identified and suggestions for improvement are made, in order to improve the body of scientific knowledge. From the literature survey, and from discussions with experts in the field, it appears as if the benefits and issues identified, corroborate international findings. Benefits for countries hosting CDM projects include improved balance of payment, technology transfer and replacement of inefficient technology. Commonly occurring concerns, are that baseline setting, additionality and the entire CDM project cycle is complex. Resource and time constraints could jeopardize projects. Transaction costs have been prohibitive, further compounded by lack of initial upfront funding. Bureaucracy from the CDM executive board has frustrated attempts to implement projects. Lack of methodologies, as well as huge risk and cost in developing new methodologies have been obstacles for project developers, while clear guidelines on monitoring, governance and additionality have been conspicuously absent. Suggestions for improvement have been regular baseline revision and standard assessment procedures, application of the gold standard and an additionality tool. Issues that seem to be uniquely particular to South Africa are the slow adoption of large companies to accept the benefits of CDM, difficulty in convincing company executives to embark on CDM projects, as well as unwillingness to delegate authority to technical staff. Another notable pattern is a mismatch of opinion between scientists, academics and business. South Africa uniquely, produces 90% of its energy from fossil fuels, which could limit the adoption of CDM. Lack of institutional knowledge and experience is concerning, as well as ethics and little collaboration amongst stakeholders. Innovative suggestions for improvement have included a weighting for sustainable development indicators, benchmarks to simplify baselines, sink projects to be excluded owing to their risk, sellers clearing houses, industrial gases to be excluded, and programmatic CDM. Another important suggestion is that taxation of CDM credits should be abandoned, and the restrictive Public Finance Management Act to be improved. The proposed study has attempted to highlight some of these significant issues, with the view to improving the current knowledge and advance the possibility of alleviating some of these burdening issues.

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A Comparative Examination of International Carbon Trading Mechanisms

This paper uses timer series panel data from Bloomberg to ascertain the affects that carbon prices and other factors have on European oil and steel companies. This paper finds inconclusive evidence of carbon price return correlation with oil and steel company equity return. However it does find a strong positive correlation between the market portfolio excess return, which is the return on the DJS 600 EUR index minus the German three-month T-bill rate, and oil and steel excess equity return.

I explore the effects of the implementation of the two U.S. cap-and-trade policies on carbon dioxide (CO2) emissions for the two regions in which the policies are active as well as the regions on their respective borders. The cap-and-trade policy is a market-based approach to reduce emissions by capping the total amount of emissions produced and allowing emission producing entities to trade emission allowances on an open market. The two active cap-and-trade policies in the United States are the Regional Greenhouse Gas Initiative (RGGI), located in the northeastern United States, and in California, which differ in design, scope, and duration. I use a difference in differences design to analyze the change in CO2 emissions in the states effected by the policies relative to the rest of the country. I find that the RGGI policy has not reduced CO2 emissions in comparison to the rest of the non-policy states but only the California emission trading system has yielded a statistically significant decline. The results also find that the there is no evidence to suggest different changes in CO2 emissions in the states bordering both regions in which the policies are in place.

No-till management for agronomic crop production is recognized as an effective practice to regain a portion of soil organic matter lost following decades of cultivation. Increasing soil organic matter sequesters C, conserves organic N and concomitantly improves soil quality. Objectives of this research were to: i) quantify C sequestration rate and N conservation with duration of continuous no-till; ii) measure C stratification with continuous no-till as an indicator of soil quality; and iii) evaluate the Illinois soil N test (ISNT) for its value to predict fertilizer N needs of corn in Virginia. Objectives i and ii were achieved by collecting soil samples from 63 production fields in the Virginia Coastal Plain that were managed using continuous no-till from 0 to 14 yrs. No-till management resulted in sequestration of 0.308 ± 0.280 Mg C ha⁻¹ y⁻¹ and conservation of 22.2 ± 21.2 kg N ha⁻¹ yr⁻¹ (0-15 cm). The C stratification ratio (0-2.5 cm: 7.5-15 cm) increased with increasing duration of continuous no-till (0.133 ± 0.056 yr⁻¹) due to the accumulation of organic matter at the soil surface indicating improved soil quality with continuous no-till management. Objective iii was addressed by conducting 29 on-farm fertilizer N response trials in major corn producing areas of Virginia with the duration of continuous no-till management ranging from 0 to 25 yrs. The ISNT values were significantly related to yield without fertilizer N (r² = 0.57; p<0.001) and relative yield (r² = 0.64; p<0.0001). We also found that the ISNT extracted a relatively consistent percentage of total soil N (16.3 ± 0.73 %) suggesting it is a poor indicator of labile N. Total soil N values did almost as well as the ISNT in predicting yield without fertilizer N (r² = 0.53; p = 0.0002), and equally well predicting relative yield (r² = 0.64; p<0.0001). Results do not suggest the ISNT is useful for measuring mineralizalbe N or improving fertilizer N recommendations in Virginia cropping systems. / Ph. D.

As response to climate change, the UN and the EU have adopted a market-based approach aiming to reduce Greenhouse gases via flexible market-based mechanisms, constituted by carbon trading and carbon offsetting. The approach rests on the notion that sustainable development and environmental protection are compatible with a liberal market and economic growth. However, this rather complex issue is debated among stakeholders and the perspectives of the matter vary. As an important societal institution, Swedish newspapers play a central democratic role by interpreting, conveying and discussing responses to climate change. By having this informative role, Swedish newspapers influence the public agenda. This study aims to analyze and describe how carbon trading and carbon offsetting are presented in Swedish newspapers by revealing patterns within their content. The research was conducted via a content analysis of 204 articles in the two leading newspapers in Sweden, Aftonbladet and Dagens Nyheter covering the years 2007 and 2014. The results could be summarized as: (i) the issue is described through a variety of contexts with strong influence of ideological messages, (ii) the elites in society in general and domestic political parties/allianes in particular are the most dominant stakeholder groups in the debate, (iii) the approach seems to be linked to the messages of Swedish liberal/conservative parties, (iv) the political orientation of the newspapers do not influence the choice of political parties given a voice in the articles, (v) the level of connection between cabon trading/carbon offsetting and sustainable development varies among the articles.

Thesis (MPhil)--University of Stellenbosch, 2011. / ENGLISH ABSTRACT: The world has been engaged in a global ‘development project’ since the late 1940s. This process gained new momentum with the end of colonialism and the emergence of newly independent countries, all of them plagued with high levels of poverty. Traditional models of economic growth based on industrialization and import-substitution did not deliver the expected results to reduce poverty, especially in Africa. New ways of engaging with development emerged; in particular the basic needs approach in the 1970s and later the human development approach. Independently a new environmental movement surfaced in the 1960s, responding to the rallying call of global environmental destruction as a result of economic activities. For the first time a global language on the limitations nature presents to development emerged. The ‘movement’ received particular traction with the emergence of global climate disruption as the single largest global environmental issue. ‘Human needs’, represented by the anthropocentrists, and ‘environmental limitations’, represented by environmentalists were merged in an uncomfortable union to give birth to the notion of sustainable development. Yet, as a result of a large variety of perspectives, no agreement has been reached on what sustainable development means or should achieve. There is agreement though that developmental needs and environmental challenges are both urgent. An important unanswered question is how the world will pay for sustainable development interventions. Some interesting ideas on alternative sources of development finance has been around for a while, yet has not found practical application. Carbon finance, an innovative new source of funding, is an exception. This exploratory research was conducted by reviewing existing relevant literature using the inductive logic technique. It was initiated as a result of specific experiences leading the researcher to some general ‘truths’. The findings revealed that carbon markets, which are primarily focussed on reducing carbon emissions and which in itself makes a positive contribution to sustainability, has over the last few years successfully leveraged billions of dollars for investment in sustainable development projects globally. Some of these have the added advantage of co-benefits for the poor. Its role is set to expand as a source of development finance. South Africa has the potential to earn large amounts from carbon trading, assisting the country to move to a more sustainable development trajectory. The findings concluded that realising this potential will require a more focussed approach, especially from the South African Government. / AFRIKAANSE OPSOMMING: Die wêreld is sedert die 1940s besig met ‘n grootskaalse ‘ontwikkelingsprojek’. Die proses het nuwe momentum gekry teen die einde van die koloniale tydperk. Die nuut onafhanklike state het almal gebuk gegaan onder hoë vlakke van armoede. Tradisionele modelle van ekonomiese groei gebasseer op industrialisasie en invoer vervanging, het nie die verwagte resultate in terme van armoede verligting - veral in Afrika - gehad nie. Nuwe benaderings tot ontwikkeling - spesifiek die ‘basiese behoeftesbenadering’ in die 1970s en later die menslike ontwikkelingsbenadering – is ontwikkel met die hoop dat dit beter resultate sal lewer om armoede hok te slaan. Terselfdertyd het ‘n nuwe omgewingsbeweging in die 1960s ontstaan, in reaksie op die vernietig van die natuur deur die mens se ekonomiese aktiwiteite. Die gevolg was dat daar ‘n internasionale taal onstaan het wat die beperkinge wat die natuur op ontwikkeling plaas kon verwoord. Dit het veral momentum gekry met die bewuswording dat aardverwarming die wêreld se grootste omgewingsuitdaging bied. Mense se behoeftes soos verwoord deur antroposentriste, en omgewingsbeperkings soos verwoord deur omgewingskundiges, het bymekaargekom om die nuwe konsep van volhoubare ontwikkeling te vorm. As gevolg van ‘n groot verskeidenheid van interpretasies is daar geen ooreenstemming oor wat volhoubare ontwikkeling beteken of behoort te bereik nie. Waaroor daar wel ooreenstemming is, is die feit dat die wêreld se behoefte aan ontwikkeling sowel as die omgewingsuitdagings beide dringend is. ‘n Belangrike vraag wat niemand nog kon beantwoord nie, is hoe die wêreld gaan betaal vir volhoubare ontwikkelingsprojekte. Alhoewel daar ‘n paar kreatiewe idees vir alternatiewe bronne van ontwikkelingsfinansiering die rondte doen, het nog nie een daarvan praktiese beslag gekry nie. Die enigste vindingryke nuwe bron van ontwikkelingsfinansiering wat wel geïmplimenteer is, is koolstof finansiering. Dié ondersoekende navorsing is gedoen deur middel van ‘n literatuur studie van bestaande relevante materiaal, deur gebruik te maak van die induktiewe logika tegniek. Die studie is geïnisieer as gevolg van spesifieke ondervindings wat die navorser gelei het na algemene ‘waarhede’. Bevindinge uit die studie het aangedui dat koolstof markte, wat primêr ten doel het om die vrystel van aardverwarmingsgasse te beperk en dus opsigself ‘n positiewe bydrae tot volhoubaarheid lewer, oor die laaste paar jaar daarin geslaag het om miljarde dollars beskikbaar te maak vir volhoubare ontwikkelingsprojekte wêreldwyd. Sommige hiervan het die voordeel dat dit arm gemeenskappe bevoordeel. Die rol van die koolstofmarkte gaan in die toekoms toeneem. Suid Afrika het die potensiaal om groot bedrae te verdien uit koolstof finansiering, wat die land behoort te help om op ‘n meer volhoubare ontwikkelingspad voort te gaan. Die bevindinge sluit af deur aan te dui dat die realisering van dié potensiaal ‘n baie meer gefokusde benadering deur veral die Suid Afrikaanse Regering gaan vereis.

In recent year, the awareness of environmental protection has made the power dispatch problem not necessarily economy-oriented. This thesis proposed the application of Particle Swarm Optimization (PSO) algorithm to solve the Unit Commitment (UC) problem for 24 hours with maximum profit in the power and carbon market. Optimal Power Flow (OPF) is used to solve the UC problem for the interconnected power network that is comprised of three independent areas to optimize the dispatching strategy. The UC problem must satisfy the constraints of the load demand, generating limits, minimum up/down time, ramp rate limits, and also the limits of power flow, buses voltage and transmission line capacity. The other objective of this thesis is to employ the Static Synchronous Series Compensator (SSSC) to integrate with OPF based on Equivalent Current Injection (ECI) power flow model, and install it at interconnected lines between each independent area controlling the power flow to reduce emission. In order to avoid the local optimality problem, this thesis proposed the utilization of the Multiple Particle Swarm Optimization (MPSO), which can quickly reach the optimal solution with a better performance and accuracy. The Independent Power Producer (IPP) can get the maximum profit with installed SSSC from the power and carbon trading with the calculation of power wheeling expense and carbon forecasting data. Furthermore, it can also assess the need of participating in the trading market or not.

Carbon dioxide (CO2) is the most important component of Greenhouse Gas (GHG) that causes global warming and sea-level rising. Thermal power plants dominate electric power generation in the world, and has been reported to be the major contributor of CO2 emission. To prevent the related global warming caused by GHG emission, carbon quota trading is implemented and becomes a gradually arising market. This thesis proposed a research focused on the relationship between the carbon trading scheme and dynamic economic dispatch (DED) problem for the public utility. A model of the carbon trading market was investigated and introduced into DED problem incorporating wind and solar power plant. A refined particle swarm optimization (PSO) algorithm, PSO with time-varying acceleration coefficients (PSO-TVAC), is applied to determine the DED strategy with the incorporation of independent power providers (IPPs) and green power plant. The model of the carbon trading was considered in the DED problem. Carbon reduction is treated as the inner-cost of utility, and the fictitious carbon quotas can be resold to the market, while the energy shortage can be satisfied by purchasing quotas from the market. In order to avoid premature convergence of the original PSO, the PSO-TVAC method is introduced to improve the searching efficiency.