CONSULTANCY REPORT

Consultancy report



Executive Summary

This report was created to answer fundamental questions about the voluntary carbon markets such as transaction volumes, credit prices, project types, locations, and the motivations of buyers in this market. Over the past several years, these markets have not only become an opportunity for citizen consumer action, but also an alternative source of carbon finance and an incubator for carbon market innovation. As the voluntary carbon markets have rapidly gained traction, the answers, to these questions have become increasingly important to investors, policymakers, and environmentalists alike. For example, since the last edition of this report, we have seen various UK climate bills make reference to voluntary carbon offset standards, the Japanese government launch a voluntary carbon-offsetting scheme, and the U.K. government issue an official definition of “carbon neutral.” Proving the legitimacy of carbon offset projects remains a major issue in the marketplace, leading to a so-called “flight to quality.” Last year saw further establishment and greater functionality of voluntary offset standards; the emergence of new registries; the forging of new partnerships between infrastructure providers; the formation of coalitions to encourage self-regulation; and increased market transparency. At the same time, existing and potential voluntary market consumers became more sophisticated as literature and education around offset quality increased. All of this points to a further maturation of the market in 2008. However, at the same time, the voluntary carbon markets, like any other commodity market, were not immune to the over-arching forces of the economy and regulatory developments.

Introduction

This client required a technical due diligence study on a fuel cell development company. The focus of the work was to advise the client on the actions the fuel cell developer needed to take to make its product market ready. This included recommendations about manufacturing philosophy, the effect of volume manufacture on costs and the development of standards to create cost effective manufacturable products.

The clients are working on creating electric hybrid vehicles of different types for different markets. One client has designed a novel DC/DC converter in collaboration with a university and a group of European partners. LCIC is now assisting this client to install the converter in a small municipal fuel cell / battery hybrid electric delivery vehicle. Another client has a large electric vehicle business. LCIC is working with a Chinese fuel cell company to advise the client on the development of fuel cell hybrid delivery vehicles to augment its product range.

In collaboration with a major international business consultancy, work was undertaken to develop a micro CHP implementation strategy for the client. This included an evaluation of the market size, market segmentation, appropriateness for CHP and a comparison of the available technologies including PEM and SOFC fuel cells. Recommendations were made to the client and the strategy is now being implemented.

Clients come to Evolution Markets to get deals done quickly, creatively, and cost-effectively because we understand that success in the environmental and energy marketplace is about speed, innovation, and ...