William Byun, Managing Director, Asia & Middle East, AES Renewable Energy gives a quick overview of the growth opportunities in the Asian Carbon Markets. William will be presenting at the upcoming Carbon Markets Asia conference
What do you and your organization do in the Carbon Markets sector?
We have a specific business division, Climate Solutions, to develop and monetize carbon offsets. It is a major part of our business projections for our corporate growth. Climate Solutions has separate departments in each of our geographic divisions worldwide. In parallel, each of our other business groups also coordinates and develops carbon offset projects which may arise from their own internal projects.
What do consider to be the key factors which will affect the growth of the Asian Carbon Market?
Less restrictions on the market such as set national floor prices or imposing minimal national shareholding stakes, possible guidelines related to technology preferences.
What do you consider to be the most interesting CDM developments and biggest challenges in Asia at this time?
With the “completion” of simpler pure-carbon offset projects, there is a growing depth of the market in relation to dual-revenue projects such as for renewable energy.
What is the most interesting carbon mitigation project in Asia that you have come across and why?
The most interesting one is a set of projects in progress – to try to aggregate similar-sized biomass power projects in Thailand to fit under the Thai Government’s special tariff for small-scale renewable power projects. One of the problems for carbon projects are that they are small and hence more difficult commercially. By trying to bundle similar projects, this my be a way around it.
How do you think Asia will be affected by future regulatory developments?
Regulators in Asia seem to be focused more on “fine-tuning” the regulatory regime to target policy preferences and market guidance goals, rather than aim towards a more freerer regime which would allow for more market-driven growth. Such a focus is in line with other such pro-active economic policy implementation throughout Asia and hence, the direction for the growth of carbon markets will similarly not be necessarily driven by market forces but rather the policy goals of the various national governments.
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