|
New Tool Estimates Financial Impact of Carbon Emissions
Trading
WASHINGTON, DC , October 17, 2005 -
ICF Consulting announces the launch of its proprietary,
new International
Carbon Pricing (InCaP) tool, to assist companies with
their mid- and long-range emissions strategies. InCaP allows
firms to develop international carbon market scenarios
and determine how changes in key variables are likely to
affect the future price of CO2 allowances and
credits. Insights from InCaP help firms position themselves
to manage financial exposure given the forecasted market
price range. Powered by economic fundamentals, cutting
edge market research, and the strength of ICF Consulting’s
suite of proprietary and licensed energy
sector models, InCaP gives firms the
fundamental information needed to analyze and create risk
management strategies in today’s carbon constrained
environment.
Earlier this year, the European Union’s Emission
Trading Scheme (EU ETS) commenced, and companies are watching
the largest multi-country greenhouse gas (GHG) trading
system with great interest. Ratification of the Kyoto Protocol
has made it evident that international emissions trading
will play a significant role in meeting industry and national
GHG targets. The prospects for buying and selling GHG emission
reductions in an international market offer new risks and
opportunities for businesses.
"Although countries vary in their level of preparations
for the global carbon market, the implications for everyone
in the business community are substantial," says
Skip Willis, Managing Director of ICF Consulting’s
Canadian operations. "Understanding the factors that
will move the market for carbon permits and the nature
of the risks companies face in complying with carbon constraints
is essential for management planning in the coming years,"
says Melinda Harris, an ICF Consulting senior economist.
InCaP is being used by firms throughout North America
and Europe to evaluate opportunities and risks in future
carbon markets. In a recent application, ICF Consulting
used the tool to generate estimates of the costs to the
firms comprising Canada's Large Final Emitters group,
who are expected to contribute 45 Mt of reductions through
2012. Our findings indicate that the cost to these firms
is likely to approach US$3 billion. Potentially critical
factors—such as access to credits from the Clean
Development Mechanism, purchases by non-Canadians of surplus
Assigned Amount Units from countries with economies in
transition, and the speed and cost-effectiveness with which
reductions can be obtained in the energy sector—could
push costs considerably higher or lower. In Europe, InCaP
has been used to support investment decisions for several
new gas-fired power plants in Europe and to explore the
impact on price of including the aviation sector in the
EU ETS.
Learn more about how ICF Consulting is helping agencies
and companies manage their climate
change concerns.
|
ICF International (Nasdaq: ICFI) partners with government and commercial clients to deliver consulting services and technology solutions in the energy, environment, transportation, social programs, defense, and homeland security markets. The firm combines passion for its work with industry expertise and innovative analytics to produce compelling results throughout the entire program life cycle, from analysis and design through implementation and improvement. Since 1969, ICF has been serving government at all levels, major corporations, and multilateral institutions. More than 1,800 employees serve these clients worldwide. ICF’s Web site is http://www.icfi.com.
|
For Immediate Release
Contact: Douglas Beck
1.703.934.3820
|
|
