Carbon Market Services

Since 1987, ICF International has supported public and private clients on issues related to the carbon market. We have amassed significant expertise in developing strategies and analyzing policies to manage emissions of GHG and to design goal-oriented climate mitigation and adaptation strategies. Our climate change strategy and policy services include:

• Joint Implementation (JI) and Clean Development Mechanism (CDM):
  Project Origination and Management
• Emission Inventories and Carbon Footprints
• Corporate Climate Change Strategy
• Project Descriptions

Joint Implementation (JI) and Clean Development Mechanism (CDM):
Project Origination and Management

In the rapidly growing global market for emission reductions, ICF International is an internationally recognized leader in developing carbon credit projects under the CDM and JI mechanism of the Kyoto Protocol. We manage an entire project cycle from origination to the issuance of carbon credits.

Overall, ICF has provided strategic and due diligence services for more than 300 proposed JI and CDM projects. We are highly experienced in helping companies undertake JI/CDM market assessment studies, providing support throughout the project life cycle, and bringing emission reduction credits to the market. ICF has demonstrated extensive capabilities in preparing project design documents (PDD) and developing new baseline and monitoring methodologies in the energy, industry, waste management, and land use sectors.

Our staff based in Eastern Europe and Asia is well acquainted with many Designated National Authorities (DNA) in countries with high JI/CDM potential. We have conducted JI/CDM project work in such countries as Russia, Ukraine, Belarus, Azerbaijan, Armenia, Georgia, and Uzbekistan. To support its activities, ICF has developed a number of tools to address and quantify the risks associated with CDM projects and calculate the price of carbon, including K-PRISM® (Kyoto Project Risk Management System) and InCap™ (International Carbon Pricing Tool).

Emission Inventories and Carbon Footprints

ICF International has more than 20 years of experience supporting national, regional, sectoral and project-level estimates of GHG emissions and sinks. ICF’s experts served as lead authors and reviewers for the 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines and Good Practices on national GHG Inventories.

At the national level we have supported GHG inventories in Russia, Ukraine, Belarus, the U.S., Canada, Australia, and more than 50 developing countries. At the sectoral level, ICF has conducted global, regional, and national inventories for all six GHG gases included in the Kyoto Protocol and developed comprehensive GHG inventories for different regions of Russia (e.g., Cheliabinsk region) and U.S. states, including California, Florida, and Texas. We have developed detailed, process-level inventories for such important industries as oil and natural production, transmission, and storage and distribution; coal mining; aluminum and magnesium industries; waste management; and land use, land use change and forestry.

At the entity level, ICF has supported detailed corporate-level inventories for a number of leading companies in the oil and gas sector in Russia and the U.S., as well as manufacturing and media companies.

Corporate Climate Change Strategy

ICF International has worked with more than 60 of the world’s leading companies by market capitalization to help develop climate strategies that are aligned with core commercial drivers. In particular, we have helped more than 55 of the Financial Times Global 500 (FT500) companies in Europe, the Americas, and Asia to align climate change concerns with their core commercial strategies over the past 15 years.

Our approach has helped many companies translate the uncertainties around the evolution of carbon policy in different jurisdictions—the price of CO2 in the fragmented carbon markets, the paths by which low-carbon technologies will emerge, and the possible reputation-related risks and opportunities—into a set of coherent scenarios through which analysis of value-at-stake and abatement costs can be undertaken. Our efforts have often extended beyond strategy design into implementation.

Our specific services to Russian/NIS companies include:

• Value-at-Stake Analysis
• Emission Abatement Cost Assessments
• Carbon Market Analysis and Carbon Finance Arrangement

Value-at-Stake Analysis

ICF’s approach involves systematically analyzing a company’s risks and opportunities from carbon constraints across its value chain, considering the emergence of carbon markets and evolving climate policy, and developing creative and economical solutions―often leading to substantial company savings.

Emission Abatement Cost Assessments

ICF develops emission abatement cost assessments at the sector and individual corporate level. Our proprietary RESPIRE® (Rating and Evaluation System for Prioritizing Investments in Reducing Emissions) model was developed specifically to aid firms in evaluating emission reduction options.

Carbon Market Analysis and Carbon Finance Arrangement

ICF’s services include emissions trading and carbon offsets procurement strategies, market analysis in support of low carbon technology companies, and carbon market implications of government and international policy developments. ICF has also developed a proprietary state-of-the-art carbon price forecasting model, InCaP™ (International Carbon Pricing Tool), to assist decision makers with assessing financial risks related to current and potential future carbon constraints.

Our special offer to Russian/NIS companies includes finding an appropriate procedural and legal mechanism to attract carbon finance to clients’ projects. We work with more than 15 public and private carbon finance institutions and can find an appropriate “match” between the needs of buyers and sellers of carbon credits. ICF is experienced in all the components of carbon finance, including:

• carbon price setting
• development of customized pricing models
• selecting an appropriate carbon buyer/investor
• advising on the structure of Emission Reduction Purchase Agreement (ERPA)
• managing the financial arrangements (e.g., advance payment, financial security package, etc.)
• monitoring and supporting the process of carbon credit issuance and transaction between carbon registry accounts

Project Descriptions

Assessment of Gas Losses from Underground Repositories, Azerbaijan Republic

In 2007, ICF estimated the annual methane losses from two Karadag and Kalmas underground storage facilities maintained by ZAO Azerigas. As a result, an assessment of the technical feasibility and potential benefits of the Joint Implementation (JI) project of the Ministry of Industry and Energy of Azerbaijan aimed at reducing greenhouse gas (GHG) emissions was completed. Based on the data collected from on-site visits and personnel interviews, ICF made rough estimates of the annual gas losses and developed recommendations for technical, technological, and managerial corrective actions in order to minimize GHG emissions based.

Greenhouse Gas Emission Assessments at Oil Production and Processing Facilities

In 2007, ICF calculated the GHG emissions for 2005 and 2006 at 18 oil production and five oil processing facilities belonging to TNK-BP management company. This included developing the procedures for those calculations, including the level of error associated with any results.

Technical Assistance Regarding Global Climate Change Commitments, Ukraine and Belarus

ICF has been retained to support the Governments of Ukraine and Belarus in developing the technical, legal, and human capacity to meet their Kyoto Protocol obligations. From 2004 to 2006, ICF provided the overall management of the budget, activities, and deliverables under the European Commission’s Technical Aid to the Commonwealth of Independent States (TACIS). ICF trained Ukrainian and Belarusian public and private stakeholders to strengthen their capacity to develop national GHG emission inventories and a carbon registry; prepare a JI infrastructure; and raise public awareness through accepted practices in GHG accounting, emission training, and abatement, including the latest information and underlying practices and methodologies.

MCCF Carbon Manager, South-East Countries

Since 2005, ICF has supported the European Bank for Redevelopment and the European Investment Bank managing the Multilateral Carbon Credit Fund (MCCF) on behalf of sovereign public and private participants in Finland, Belgium, Ireland, Luxembourg, Spain, and Sweden. The South-East Zone includes Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Georgia, Serbia, Kyrgyz Republic, FYR Macedonia, Moldova, Mongolia, Montenegro, Tajikistan, Turkmenistan, and Uzbekistan. ICF originated suitable Clean Development Mechanism (CDM) projects, developed documentation, assisted with validation and registration, initiated negotiations, marketed MCCF, and assisted the MCCF Secretariat with identifying further project opportunities.

Greenhouse Gas Emission Reduction Training Program (CTP), Caspian Basin

From 2002 to 2005, ICF supported the Canadian International Development Agency in strengthening the capacity of Azerbaijan, Kazakhstan, and Uzbekistan to reduce the future growth of GHG emissions. ICF developed training material and conducted training to develop GHG emission reduction projects, based on CDM and JI guidelines; assisted the public and private sector in the participating countries to identify and prepare “bankable” JI/CDM projects; and assisted local partners with finding and preparing demonstration JI/CDM projects, including initial lists, Terms of Reference, project proposal evaluation, and implementation and monitoring of selected/funded projects.

Renewable Energy Policy and the Rehabilitation of Small-Scale Hydropower Plants, Russian Federation

Under TACIS, ICF is assisting the Russian Federal Government and regional administration with the development of legal and regulatory framework to facilitate and encourage the use of renewable energy. Since 2007, ICF has provided oversight and QA/QC of projects, prepared JI projects in the renewable energy sector, consulted and collaborated with key stakeholders and project partners, established and coordinated central and regional offices, and organized training workshops and study tours about renewable energy and Kyoto mechanisms. As the Consortium Leader, ICF prepared progress reports and technical financial reporting for the European Commission (EC) Delegation in Moscow.