Tag Archives: green
Sustainable Asset Management And UAE Ambassador Tours Sustainable Agarwood Plantations
The UN FAO (Food and Agriculture Organisation of the UN) estimate that exports of Agarwood and Oud Oil from Singapore total around US$1.2 billion annually, some analysts put this figure higher at around US$3 billion. Singapore (PRWEB UK) 16 June 2013 The UN FAO (Food and Agriculture Organisation of the UN) estimate that exports of Agarwood and Oud Oil from Singapore total around US$1.2 billion annually, some analysts put this figure higher at around US$3 billion. What is certain is that Singapore and Hong Kong are the most important trading posts in Asia for one of the world’s rarest and most valuable natural commodities. Uncertainty on how much of this rare and mystical product arrives in Singapore, and in many cases where it actually comes from, has caused international concern. Since the year 2000 harvesting of wild Agarwood trees and export of its products has been banned by CITES (the Convention on International Trade on Wild Fauna and Flora) as an endangered species. Monitoring of the trade by TRAFFIC (The Wildlife Trade Monitoring Network) has led some analysts to predict there is less than two years of wild supplies of Agarwood left; yet this largely illegal industry carries on unabated. Currently the world’s largest estimated importer and distributer of Oud is the UAE, where Oud is an everyday necessity in the culture and used regularly in Arabic homes. Recognising the importance of ensuring that supplies to the Gulf could be both sustainable and legal today, and working to ensure continued sustainable supplies of this ever diminishing natural resource for the future, the UAE Ambassador to Singapore his Excellency Mohamed A. Al Qubaisi decided it was time he learned more about how this essential element of everyday Middle East life was obtained. Singapore based Sustainable Asset Management, specialist advisors and analysts to the plantation and Agarwood industry, were honoured to assist and recommended the ambassador visit industry leading sites in Thailand: tree nurseries, sustainable plantations, distilleries, processing plant and retail shops, selecting an innovative company in the sector Asia Plantation Capital (APC) as his focus so he could see first-hand the complete soil to oil process. Mark Wills, Managing Director of Sustainable Asset Management, accompanied the Ambassador and his family on his fact finding mission to Thailand where the group spent three days touring the nurseries, plantations, distilleries and finally a retail site of l’Atelier Du Bois the brand owned by APC. Along the way the ambassador not only witnessed the ground breaking technologies developed and researched by APC but also listened first hand to the managers’ detailed explanations of their advanced processes from soil to oil, resulting in a 100% pure and organic high quality sustainable Oud oil with full CITES certification. During the trip Ambassador Mohamed A. Al Qubaisi kindly shared some insights into the Agarwood relationship with consumers in the Gulf where apparently you will rarely find a house in any GCC country without either Oud or Agarwood being used; these products remain as popular as ever and demand is even growing. The Ambassador explained that Oud oil is more important than Agarwood chips and how for consumers “the priority is the smell and the durability of the fragrance note” people “know very little of its origins, except for the fact that it is rare and very expensive and prices keep increasing.” This rarity brings with it additional problems of local traders who will often try and sell sub-standard product and pass this off as high quality. “There are people who look to copy the product, especially chips and make alternatives which are not well regarded.” Apparently local buyers are also generally unaware of the global protection afforded to Agarwood and how the trade is controlled with CITES certificates, his Excellency Mohamed A. Al Qubaisi was enthusiastic “to get a better understanding of where Oud comes from and how it is made, which I now know. I would be very happy to help citizens in the Gulf understand the importance of sustainable supplies to safeguard an important aspect of our culture for generations to come.” Roger Hargreaves Chairman of APC Thailand stated “We are honoured that his Excellency Mohamed A. Al Qubaisi the Singapore UAE Ambassador chose our company and plantations to visit and gain a wider understanding of the source and fast growing industry behind the production of sustainable Oud oil which is driven in part by the demand in the Gulf and wider Middle East. Additionally now that Oud has become a mainstream fragrance with almost weekly launches by the global fragrance mega brands of a new Oud fragrance, it is vital that responsible countries like the UAE take a keen interest to ensure legal and sustainable on-going supplies for their citizens. APC were one of the first plantation companies to secure a license to import and distribute Oud in the UAE and are now entering into exclusive supply agreements with responsible UAE based importers to secure the long term supply of sustainable and natural Oud into the region, with fully legal CITES certified products and supplies. We were equally honoured that the ambassador considered the quality of fragrance and consistency of our oil to be extremely high quality, rarely encountered from plantation produced Oud oils versus wild oil.” Ambassador Mohamed A. Al Qubaisi concluded “I now have a greater understanding of its origins and the process to bring this to market, something that most people in the GCC countries will not know. Clearly the trees are in decline and that will have an effect on something that is a significant part of our culture. I am very happy that APC is providing a long term sustainable solution to help supply the market with a high quality and consistent product and that will help preserve an important part of our culture for generations to come.” APC and Sustainable Asset Management look forward to further co-operation at a diplomatic and commercial level in promoting the qualities and importance of sustainably produced Oud oil for the Middle East market and plan a series of road shows in the Gulf after Ramadan to promote the qualities of their oil, and to educate the community and importers on the importance of ensuring they buy sustainably sourced CITES certified products to safeguard their future supply and continued enjoyment of one the world’s rarest and most mystical natural products. — Questions & Answers During the trip the Ambassador wanted to answer some questions posed by Mark Wills regarding his visit and the current state of the agarwood industry:- Q. Is Agarwood still popular in the Middle East today? A. You will rarely find a house in any GCC country without either Oud or Agarwood chips being used. So yes it is still as popular today as it has ever been and demand seems to be growing. Q. To what extent does he think people in the Middle East are aware of the origin of Agarwood? A. They know very little of its origins, except for the fact that it is rare and very expensive and prices keep increasing. There are many traders who will try and sell sub-standard product and pass this off as high quality. There are people who look to copy the product, especially chips and make alternatives which are not well regarded. Q. Is there a preference to the country of origin? A. No. The priority is the smell and the durability of the fragrance note. Q. What are your views on the long term sustainability of Agarwood? A. I now have a greater understanding of its origins and the process to bring this to market, something that most people in the GCC countries will not know. Clearly the trees are in decline and that will have an effect on something that is a significant part of our culture. I am very happy that APC is providing a long term sustainable solution to help supply the market with a high quality and consistent product and that will help preserve an important part of our culture for generations to come. Q. What is used more in the GCC oil or chips A. There are more consumers of oil than chips. The largest part of the market is by far oil. Q. Are buyers in the GCC aware that Agarwood product requires CITES certification? A. No. They would not be aware of this. Q. What did you hope to achieve from the trip? A. I wanted to get a better understanding of where Oud comes from and how it is made, which I now know. I would be very happy to help you in whatever ways I can especially helping citizens in the Gulf understand the importance of sustainable supplies to safeguard an important aspect of our culture. The UAE Ambassador to Singapore his Excellency Mohamed A. Al Qubaisi Continue reading
China Carbon Permits Trade 22% Below Europe’s on Market Debut
By Benjamin Haas & Mathew Carr – Jun 18, 2013 China traded its first carbon dioxide permits for 22% less than today’s price in Europe as the nation inaugurated the Shenzhen Emissions Exchange as part of its plan to limit heat-trapping gases linked to climate change . The permits were priced from 28 yuan to 30 yuan ($4.90) a metric ton, according to Chen Hai’ou, chief executive officer and president of the exchange. That’s compares with 4.71 euros a ton ($6.30) today for European Union permits on London ’s ICE Futures Europe exchange, the world’s biggest carbon market by traded volume. Shenzhen, the first of seven test markets to start in the world’s most populous nation, is one of China’s Special Economic Zones designed to promote market policies. Its new cap and trade program will initially include 635 companies. The Shenzhen exchange traded 21,112 tons of carbon in eight transactions valued at 613,236 yuan, according to a video presentation at today’s opening ceremony. “The meager volume and pre-approved price level of today’s trades is likely to characterize the initial stages of all of China’s seven ETS pilots,” said Richard Chatterton, a London-based analyst for New Energy Finance. China had planned to start all seven pilot programs this year, with Shenzhen’s market followed by Beijing, Shanghai , Guangdong, Tianjin, Chongqing and Hubei. Some of the markets may start in 2014, Xie Zhenhua , vice president of the National Development and Reform Commission, said at today’s ceremony in Shenzhen. He didn’t disclose which exchanges are behind their original schedule. Buying Permits The new markets are set to regulate 800 million to 1 billion tons of emissions by 2015 in the world’s biggest cap-and-trade program after Europe’s, according to Bloomberg New Energy Finance. PetroChina Co., China’s biggest oil producer, and Hanergy Holding Group Ltd., a renewable-energy company, each bought 10,000 allowances today from Shenzhen Energy Group, according to the video presentation. PetroChina paid 28 yuan for its permits, while Hanergy paid 30 yuan, according to the presentation. Shenzhen City Bao’an Water Services Co. and five individuals also bought permits. The names of individuals were not disclosed. For Related News and Information: To contact the reporter on this story: Benjamin Haas in Hong Kong at bhaas7@bloomberg.net Continue reading
Explainer: China Carbon Trading Schemes Kick Off
By Erwin Jackson on 18 June 2013 The first of the seven planned Chinese pilot emission trading schemes, in Shenzhen, is to be launched today. While China has been indirectly pricing carbon for years, this scheme will be its first mandatory carbon market. Second largest emissions trading scheme in the world Pilot emission trading schemes are planned to start this year in Beijing, Chongqing, Guangdong, Hubei, Shanghai, Shenzhen and Tianjin. These pilots are expected to cover around 700 million tonnes of CO2-e by 2014, which is a fraction of China’s total emissions, yet are still very significant. By comparison, Australia’s carbon price covers around 380 million tonnes, California’s 165 million tonnes and Europe’s 2.1 billion tonnes. (See Table 2 for comparison with Australia.) China plans to implement a national scheme around 2016 based on the lessons learned from the pilot schemes. China is implementing a range of policies to address climate change, energy security and air pollution. If projections are accurate, these policies (see list of efforts on page 2) since 2005 will deliver a reduction in emissions of 4.5 billion tonnes of CO2 in 2020. This would be the largest single absolute reduction for any country in the history of action on climate change, and would equivalent of closing 1,000 500MW coal-fired power stations for a year. Note also that China’s unabated appetite for coal is overstated. China has been the world’s largest investor in coal over the last decade but the nation’s energy use is undergoing significant change. In 2011 coal plant investment was less than half of what it was in 2005. Inefficient coal generation have been progressive closed and last year coal consumption grew only 2.5 per cent compared to nearly 12 per cent in 2011. Renewable energy accounted for over 19 per cent of generation in 2012 and combined with nuclear, accounted for over 90 per cent of all electricity generation growth last year. Spotlight on Shenzhen Shenzhen is one of the China’s Special Economic Zones, located next to Hong Kong. It is home to around 11 million permanent residents. The region is seeking too to build an advanced carbon finance centre. In 2011, its GDP was around $178 billion and per capita incomes were around $17,000. Total emissions are estimated to be around 83 million tonnes in 2010 (compared to around 570 million in Australia). Rules will differ between the pilot schemes to allow China to experiment with different emission trading scheme designs (see table 1). Shenzhen has committed to reduce the emissions intensity of its economy by 21 per cent below 2010 levels by 2015. Like the schemes in other major economics, Shenzhen’s market has an absolute emission limit. This is around 32 million tonnes. This distinguishes it and other schemes from New Zealand’s emission market or the Coalition’s Emission Reduction Fund, which do not have a regulated cap on emissions. The scheme will cover all companies with emissions over 20,000 tonnes of CO2-e and around 40 per cent of total emissions. It covers 26 sectors, including electricity and natural gas, water supply and industrial manufacturing. Initially emission permits will be allocated to companies for free but this will be progressively reduced through time and income from the carbon price to be used to support the development of new carbon reduction technologies and projects. Companies that pollute more than they are allowed will have to buy credits from those that reduce emissions below their targets. Companies will be charged three times the market price for each tonne of CO2 they emit over their cap if they fail to deliver enough credits. It is unclear at this point whether carbon prices for traded units will be public in the short-term. Reasons for action Chinese officials have cited numerous reasons for their climate action, including an effort to build energy security, reduce air pollution, foster new industries and contribute to global emission reductions. China’s significant investment in clean energy, for instance, has helped the emerging economy leapt ahead of countries like the United States in its ranking among the G20 nations in its ability to compete in a global low carbon economy. This year China ranked 3rd, up from 7th last year. If China had not increased its clean energy investments, it would be in 8th place. Renewable energy in particular has had exponential growth. From having virtually no industry in 2005, China now has the largest installed capacity of wind power in the world and is the world’s largest producer of solar modules. China is now the world’s largest investor in renewable energy with around $65 billion invested in 2012. Between 2009 and 2011, China invested more money in renewable energy than it did in coal fired generation. Is it enough? Despite China’s recent efforts under current energy projections, emissions and coal use will keep growing until at least 2020. This is not inconsistent with a world seeking to avoid a 2°C increase in global temperature as long as an emissions peak by around this time. Erwin Jackson is Deputy CEO of The Climate Institute Continue reading
