Slides are now available from Seminar: "Financial Contracts, Carbon Banking and the Management of Carbon Credits in Small Scale Plantation Forests".
ISCR would like to extend an invitation to you to attend the upcoming evening seminar presented by Andrew Coleman, Senior Fellow, Motu Economics:
Wednesday 16 March 2010
Rutherford House Lecture Theatre 1
5.30-7.00pm
Please join us for light refreshments in the foyer from 5.30pm prior to the seminar's commencement at 6pm. There is no charge to attend this seminar.
"Financial contracts, carbon banking, and the management of carbon credits in small scale plantation forests"
Following the adoption of the ETS, forest growers have the option of earning carbon units as their forest grows, so long as they are repaid when the forest is harvested. This provides them with the ability to change the cashflow profile of forest earnings, but exposes them to the risk that the price of carbon is high at the time the forest is harvested. Using evidence from commodity markets, this paper analyses how forward markets, futures markets, or carbon debt markets can be used to manage this price risk. It suggests that carbon debt markets are likely to have the most useful institutional form, because it would enable forest growers to earn interest by temporarily lending their carbon units in the period between when they are earned and when they are required. The paper further argues that industrialists wishing to make investments that reduce carbon emissions are natural borrowers of carbon, as it reduces the price risk they face. Thus a carbon debt market not only provides a profitable opportunity to the forest growers, but is likely to reduce society's overall emissions by inducing additional carbon reducing investment.
Andrew Coleman, has a joint appointment as a Senior Fellow at Motu Economics and Public Policy Research, and as a lecturer at the Department of Economics, University of Otago. Having previously worked at the Reserve Bank of New Zealand, he specialises in the analysis of commodity markets, product market integration, and financial market integration.
If you would like to attend this seminar please contact:
kathy.mckenzie@vuw.ac.nz or Phone: (04) 463-5563 (Bronwyn)
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