Seize the business opportunities in the budding US carbon market

Oliver Bussler, Manager, Commercial Environment, EPCOR Utilities Inc

What do you and your organization do in the Carbon Markets sector? 

My organization is an active participant in the carbon market that is interested in hedging some of our greenhouse gas exposure through trading activities.  We are currently an active buyer and project developer in the Canadian market. 

What do you consider to be the most interesting developments and biggest challenges in the North American carbon market at this time?  

The greatest challenge continues to be the absence of the rules around the market.  More specifically the fact that the current rules seem to be emerging regionally rather than nationally makes it difficult to focus our efforts.  One of the most interesting developments is that all three US presidential candidates are advocating for a national approach to managing greenhouse gas emissions.

If regulated emission reductions become mandatory in the US, who stands to be most affected by this, and what would you recommend to anyone worried about impending legislation ?

Until the details of the rules emerge it is difficult to say with certainty who stands to be most affected, however it is likely that those entities with the largest emission footprint are also going to be those most affected. Understanding one's corporate greenhouse gas footprint as well as creating a list of projects that may be implemented internally to reduce emissions is the first step in preparing for impending legislation.  The more progressive companies may also wish to experiment with the emerging carbon market.  Although the rules around the carbon market remain uncertain, it is clear that there will be a role for the market and thus early participants may be able to gain an advantage through the experience and corporate knowledge that may be obtained through direct participation.

How do you see the North American Carbon Market looking in 5 years’ time?

It is my prediction that in five years' time, companies can expect to know the rules of national carbon legislation.   Although allowances will not yet be issued, trading in an offsets market will emerge.

What do you see as key to building a truly global carbon market?

A truly global carbon market will requiresome consistency in target setting which will include the imposition of targets upon China and India.  It is unlikely that the North American market will view international credits as truly fungible until there is some consistency in programs.