Pedro Moura Costa

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Pedro Moura Costa (born 1963, in Brazil) is an entrepreneur involved in environmental finance with a focus on the international efforts for greenhouse gas (GHG) emission reductions. Of particular relevance, he was the founder and President of EcoSecurities Group Plc., one of the leading project developers for the international carbon markets, and has written widely about the policy and science of climate change mitigation, including contributions to the Intergovernmental Panel on Climate Change (IPCC) reports. [1] [2]

Contents

Role in Pre-Kyoto carbon emission reduction initiatives

Moura Costa's involvement with the carbon emission reduction sector started in 1991, with the development of two of the first carbon forestry projects worldwide, namely the Innoprise-Face Foundation Rainforest Rehabilitation Project and the Innoprise-New England Power Reduced Impact Logging Project, both in Sabah, Malaysia. Moura Costa served as Senior Project Officer for Innoprise between 1991 and 1995, involved with both these projects. [3]

While the concept of ‘joint implementation’ of greenhouse gas (GHG) emission reduction projects (also called "carbon offset projects") was launched at the United Nations Conference on Environment and Development (UNCED, “the Earth Summit”), the early carbon offset projects of the 1990s suffered from a lack of specialised services to support them. [4] One service of particular importance is that of independent verification of carbon offsets, as offsets are dependent on proving a shift of behaviour in relation to a baseline (this shift is referred as "additionality", in the sector).

Moura Costa identified the absence of independent verification services as one of the limiting factors to the growth of the carbon market at that time, and in 1996 he developed the first carbon offset verification service worldwide, which was licensed to the Swiss certification company SGS (Société Générale de Surveillance). The first client for this certification service was the Costa Rican National GHG Mitigation Programme, developed by OCIC (Costa Rican Office on Joint Implementation). [5] After the launch of the Kyoto Protocol (see below), independent certification of carbon emission reductions became a mandatory requirement under the rules of the Clean Development Mechanism (i.e., the carbon credits of this mechanism are called CERs, meaning Certified Emission Reductions).

To pursue the work with SGS and the government of Costa Rica, Moura Costa created EcoSecurities, a company specialised in the development of greenhouse gas mitigation projects.

Contribution to the CDM and carbon trading

EcoSecurities was founded in January 1997 by Moura Costa and environmental economist Marc Stuart [6] to provide "environmental finance solutions". Twelve months later, in December 1997 the Kyoto Protocol was signed creating binding commitments for reductions in greenhouse gas emissions among industrialised countries. It also created the Flexibility Mechanisms, Joint Implementation and the Clean Development Mechanism (CDM), that enabled the creation and use of carbon credits from greenhouse gas emission reduction projects. Carbon trading gradually evolved from being a niche environmental activity to becoming a global market that in 2010 mobilised over €120 billion, including trades under the European Union Emissions Trading Scheme and the UN flexibility mechanisms. [7] [8]

As carbon markets evolved, Moura Costa was particularly interested in making investors and analysts incorporate the impact of greenhouse gas emissions on company valuations. In 1999, he co-ordinated the development of the carbon trading component of Australian Plantation Timber, a forestry investment fund, the first time ‘carbon value’ was included in an investment prospectus. Gradually, investor awareness of climate and environmental issues increased, and as a result of that (and contributing to this trend) a series of companies in the carbon market sector floated on stock exchanges in 2004–2006.

The adoption of binding emission reduction commitments by the Kyoto Protocol created a positive environment for more carbon offset project development companies to be created worldwide. Benefitting from an early mover advantage, EcoSecurities rapidly expanded and established a significant market share. [9] In December 2005, EcoSecurities listed on the London Stock Exchange (AIM) raising capital for its expansion, one of the first companies in this sector to be listed. As President and COO, Moura Costa coordinated the expansion of the company, from 30 to 300 employees, establishing the firm's offices in 28 countries worldwide. In 2007, the company raised a second round of capital from the stock markets, and attracted Credit Suisse as a strategic partner. [10]

During the period he was involved with EcoSecurities, from 1997 to 2009, the company developed more than 450 CDM projects in over 40 countries and, between them, using over 20 different technologies. [11] The company was a pioneer in many aspects of the sector, including the development of the first project registered by the CDM (the NovaGerar landfill project in Brazil), and the first project to receive CERs (a small-hydro project in Honduras). With a view to broadening its reach, he led the company to develop new divisions focused on specialised technologies related to greenhouse gas abatement. Among them, EcoMethane, a division specialised in the creation of projects for the collection and destruction of methane from landfill sites, and a division for the development of N2O abatement projects, focusing on nitric acid factories. Moura Costa was also the fund manager of the EcoSecurities-Standard Bank Carbon Facility, which invested in projects on behalf of the Government of Denmark [12] [13] and, subsequently, EcoSecurities also run similar funds on behalf of the governments of Austria and Japan.

In April 2009, Moura Costa resigned from EcoSecurities to conduct a take-over bid to acquire control of the company, together with Brazilian investment group BTG. [14] [15] This resulted in an international competition for the acquisition of the company [16] [17] [18] and in October 2009 EcoSecurities was acquired by JP Morgan. [19] [20]

Creation of BVRio Environmental Exchange in Brazil

In 2011, Pedro and his brother Mauricio Moura Costa founded BVRio Environmental Exchange (Bolsa Verde do Rio de Janeiro), an organisation based in Rio de Janeiro, Brazil, with the mission to develop market mechanisms to facilitate compliance with environmental laws. [21] [22] BVRio was developed in partnership with the Rio de Janeiro State Government, and the Municipality of Rio de Janeiro and its board includes the participation of Funbio (Brazilian Fund for the Biodiversity), FBDS (Brazilian Foundation for Sustainable Development), and CEBDS (the Brazilian chapter of the World Business Council for Sustainable Development).

Through BVRio, Pedro has helped to create markets for different environmental assets including Forest Legal Reserve Credits, Consolidation of Conservation Areas, and Reforestation Credits to support compliance with the new Brazilian Forest Law; [23] Reverse Logistics Credits to support the implementation of the Brazilian National Solid Waste Legislation; [24] and traceable responsible commodities, to promote the sourcing of legal and/or sustainably produced forest and agricultural products. [25]

In recognition for its role in developing innovative mechanisms for environmental objectives, BVRio won the 2013 Katerva Awards [26] [27] and in 2014 BVRio was nominated a "Climate Action Leader" by the R20 Regions of Climate Action. [28]

Contribution to environmental policy and science

Dr Moura Costa has a PhD from University of London and has published widely in the subjects of environmental finance, carbon trading, GHG mitigation science and forestry. [29] In particular, many of his articles have focused on scientific aspects of the design of the Clean Development Mechanism, such as discussions on leakage, additionality, monitoring and verification, permanence, and carbon forestry. He was also a Lead Author to the IPCC Special Report on Land Use, Land-Use Change and Forestry [30] and other IPCC reports (the work of the IPCC, including the contributions of many scientists, was recognised by the joint award of the 2007 Nobel Peace Prize). [31] [32] He has also written on forestry, low impact logging, and innovative financial mechanisms for the environment. [33]

His work has been covered widely by the international media, including cover features in the Wall Street Journal , [34] Director Magazine, Future Fuels, articles in Fortune Magazine , Sunday Times , Forbes , Estado de São Paulo , and TV and radio interviews with TV Globo, BBC and others. Moura Costa is regular speaker in conferences and universities, promoting innovative solutions for environmental challenges, including climate change mitigation and adaptation, pollution control, and forest protection. Between 1995 and 2005 he frequently lectured at Oxford University and Imperial College of London.

In 2007, Moura Costa organized the international conference Rio+15, to celebrate 15 years of the UN Conference on Environment and Development (the ‘Earth Summit’). The conference had the participation of over 200 international participants, including introductions by Maurice Strong (organiser of the Earth Summit) and former Brazilian president Fernando Henrique Cardoso, and received wide media coverage. [35] [36]

Moura Costa is a member of the advisory boards of Oxford Climate Policy, [37] the ClimateBonds Initiative, [38] the Brazilian Rural Society (Conselho de Meio Ambiente, Sociedade Rural Brasileira), and the Businesses for Climate (Empresas pelo Clima) initiative, and was formerly a board member of the International Institute for Sustainable Development. [39]

Related Research Articles

<span class="mw-page-title-main">Kyoto Protocol</span> 1997 international treaty to reduce greenhouse gas emissions

The Kyoto Protocol was an international treaty which extended the 1992 United Nations Framework Convention on Climate Change (UNFCCC) that commits state parties to reduce greenhouse gas emissions, based on the scientific consensus that (part one) global warming is occurring and (part two) that human-made CO2 emissions are driving it. The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into force on 16 February 2005. There were 192 parties (Canada withdrew from the protocol, effective December 2012) to the Protocol in 2020.

Emissions trading is a market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS). Carbon emission trading for CO2 and other greenhouse gases has been introduced in China, the European Union and other countries as a key tool for climate change mitigation. Other schemes include sulfur dioxide and other pollutants.

A carbon credit is a tradable certificate or permit representing the right to emit a set amount of carbon dioxide or the equivalent amount of a different greenhouse gas (tCO2e).

<span class="mw-page-title-main">Emission intensity</span> Emission rate of a pollutant

An emission intensity is the emission rate of a given pollutant relative to the intensity of a specific activity, or an industrial production process; for example grams of carbon dioxide released per megajoule of energy produced, or the ratio of greenhouse gas emissions produced to gross domestic product (GDP). Emission intensities are used to derive estimates of air pollutant or greenhouse gas emissions based on the amount of fuel combusted, the number of animals in animal husbandry, on industrial production levels, distances traveled or similar activity data. Emission intensities may also be used to compare the environmental impact of different fuels or activities. In some case the related terms emission factor and carbon intensity are used interchangeably. The jargon used can be different, for different fields/industrial sectors; normally the term "carbon" excludes other pollutants, such as particulate emissions. One commonly used figure is carbon intensity per kilowatt-hour (CIPK), which is used to compare emissions from different sources of electrical power.

The Clean Development Mechanism (CDM) is a United Nations-run carbon offset scheme allowing countries to fund greenhouse gas emissions-reducing projects in other countries and claim the saved emissions as part of their own efforts to meet international emissions targets. It is one of the three Flexible Mechanisms defined in the Kyoto Protocol. The CDM, defined in Article 12 of the Protocol, was intended to meet two objectives: (1) to assist non-Annex I countries achieve sustainable development and reduce their carbon footprints; and (2) to assist Annex I countries in achieving compliance with their emissions reduction commitments.

<span class="mw-page-title-main">Carbon footprint</span> Environmental impact

A carbon footprint is the total greenhouse gas (GHG) emissions caused by an individual, event, organization, service, place or product, expressed as carbon dioxide equivalent (CO2e). Greenhouse gases, including the carbon-containing gases carbon dioxide and methane, can be emitted through the burning of fossil fuels, land clearance, and the production and consumption of food, manufactured goods, materials, wood, roads, buildings, transportation and other services.

<span class="mw-page-title-main">Carbon offset</span> Carbon dioxide reduction scheme

A carbon offset is a reduction or removal of emissions of carbon dioxide or other greenhouse gases made in order to compensate for emissions made elsewhere. Offsets are measured in tonnes of carbon dioxide-equivalent (CO2e). One ton of carbon offset represents the reduction or removal of one ton of carbon dioxide or its equivalent in other greenhouse gases. One of the hidden dangers of climate change policy is unequal prices of carbon in the economy, which can cause economic collateral damage if production flows to regions or industries that have a lower price of carbon—unless carbon can be purchased from that area, which offsets effectively permit, equalizing the price.

<span class="mw-page-title-main">Business action on climate change</span>

Business action on climate change includes a range of activities relating to climate change, and to influencing political decisions on climate change-related regulation, such as the Kyoto Protocol. Major multinationals have played and to some extent continue to play a significant role in the politics of climate change, especially in the United States, through lobbying of government and funding of climate change deniers. Business also plays a key role in the mitigation of climate change, through decisions to invest in researching and implementing new energy technologies and energy efficiency measures.

Flexible mechanisms, also sometimes known as Flexibility Mechanisms or Kyoto Mechanisms, refers to emissions trading, the Clean Development Mechanism and Joint Implementation. These are mechanisms defined under the Kyoto Protocol intended to lower the overall costs of achieving its emissions targets. These mechanisms enable Parties to achieve emission reductions or to remove carbon from the atmosphere cost-effectively in other countries. While the cost of limiting emissions varies considerably from region to region, the benefit for the atmosphere is in principle the same, wherever the action is taken.

Carbon finance is a branch of environmental finance that covers financial tools such as carbon emission trading to reduce the impact of greenhouse gases (GHG) on the environment by giving carbon emissions a price.

Greenhouse gas accounting or carbon accounting is a framework of methods to measure and track how much greenhouse gas (GHG) an organization emits. It can also be used to track projects or actions to reduce emissions in sectors such as forestry or renewable energy. Corporations, cities and other groups use these techniques to help limit climate change. They typically set an emissions baseline, create targets for reducing emissions, and track progress towards them. The accounting methods enable them to do this in a more consistent and transparent manner.

Greenhouse gas inventories are emission inventories of greenhouse gas emissions that are developed for a variety of reasons. Scientists use inventories of natural and anthropogenic (human-caused) emissions as tools when developing atmospheric models. Policy makers use inventories to develop strategies and policies for emissions reductions and to track the progress of those policies.

The Global Warming Solutions Act of 2006, or Assembly Bill (AB) 32, is a California State Law that fights global warming by establishing a comprehensive program to reduce greenhouse gas emissions from all sources throughout the state. AB32 was co-authored by then-Assemblymember Fran Pavley and then-Speaker of the California Assembly Fabian Nunez and signed into law by Governor Arnold Schwarzenegger on September 27, 2006.

<span class="mw-page-title-main">Carbon price</span> CO2 Emission Market

Carbon pricing, also known as cap and trade (CAT) or emissions trading scheme (ETS), is a method for nations to reduce global warming. The cost is applied to greenhouse gas emissions in order to encourage polluters to reduce the combustion of coal, oil and gas – the main driver of climate change. The method is widely agreed and considered to be efficient. Carbon pricing seeks to address the economic problem that emissions of CO2 and other greenhouse gases (GHG) are a negative externality – a detrimental product that is not charged for by any market.

<span class="mw-page-title-main">Carbon emission trading</span> An approach to limit climate change by creating a market with limited allowances for CO2 emissions

Emission trading (ETS) for carbon dioxide (CO2) and other greenhouse gases (GHG) is a form of carbon pricing; also known as cap and trade (CAT) or carbon pricing. It is an approach to limit climate change by creating a market with limited allowances for emissions. This can lower competitiveness of fossil fuels and accelerate investments into low carbon sources of energy such as wind power and photovoltaics. Fossil fuels are the main driver for climate change. They account for 89% of all CO2 emissions and 68% of all GHG emissions.

EcoSecurities is a company specialised in carbon markets and greenhouse gas (GHG) mitigation projects worldwide. EcoSecurities specialises in sourcing, developing and financing projects on renewable energy, energy efficiency, forestry and waste management with a positive environmental impact.

Personal carbon credits are carbon credits created and owned by individuals who reduce their green house gas (GHG) emissions by a real and verifiable amount. Individuals cause GHG emissions from a variety of direct and indirect activities including transportation use, electrical use and home heating and cooling. Verifiable reductions in GHG emissions are aggregated into 1 metric ton increments and they become personal Carbon Credits. There are many firms that are creating applications to efficiently measure and track these emissions, while providing options to purchase and offset personal emissions.

The United Nations Collaborative Programme on "Reducing emissions from deforestation and forest degradation and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries (REDD+)" was first negotiated under the United Nations Framework Convention on Climate Change (UNFCCC) in 2005, with the objective of mitigating climate change through reducing net emissions of greenhouse gases through enhanced forest management in developing countries. Most of the key REDD+ decisions were completed by 2013, with the final pieces of the rulebook finished in 2015.

Bolsa Verde do Rio de Janeiro or BVRio is a not-for-profit association based in Rio de Janeiro, Brazil, created with the objective to create and promote the use of market mechanisms to facilitate compliance with Brazilian environmental laws.

Agriculture contributes towards climate change through greenhouse gas emissions and by the conversion of non-agricultural land such as forests into agricultural land. The agriculture, forestry and land use sector contribute between 13% and 21% of global greenhouse gas emissions. Emissions of nitrous oxide, methane make up over half of total greenhouse gas emission from agriculture. Animal husbandry is a major source of greenhouse gas emissions.

References

  1. ↑ IPCC, “IPCC Archived 2018-11-03 at the Wayback Machine ”
  2. ↑ USP, “USP Archived 2011-08-25 at the Wayback Machine ”
  3. ↑ “EcoSystems Marketplace, EcoSystems Marketplace”
  4. ↑ Harvard University, “Harvard University”
  5. ↑ UNFCCC documents, “UNFCC documents”
  6. ↑ EcoSecurities Annual Report 2006, “EcoSecurities Annual Report 2006 Archived 2011-10-04 at the Wayback Machine ”
  7. ↑ Commodities Now magazine, 2010, “Commodities Now magazine”
  8. ↑ The World Bank, 2010, "The World Bank”
  9. ↑ EcoSecurities Annual Report 2007, “EcoSecurities Annual Report 2007 Archived 2011-10-04 at the Wayback Machine ”
  10. ↑ EcoSecurities Annual Report 2008, “EcoSecurities Annual Report 2008 Archived 2011-10-04 at the Wayback Machine ”
  11. ↑ EcoSecurities Annual Report 2008, “EcoSecurities Annual Report 2008 Archived 2011-10-04 at the Wayback Machine ”
  12. ↑ GreenTech Malaysia review of carbon funds, >“GreenTech Malaysia review of carbon funds Archived 2012-07-11 at the Wayback Machine ”
  13. ↑ Powergen Worldwide, “Powergen Worldwide”
  14. ↑ Reuters, 2009, “Reuters”
  15. ↑ Point Carbon, 2009, “Point Carbon”
  16. ↑ Financial Times, 2009, “Financial Times”
  17. ↑ Carbon Finance Online, 2009, “Carbon Finance Online Archived 2011-09-28 at the Wayback Machine ”
  18. ↑ Bloomberg, 2009, “Bloomberg”
  19. ↑ Bloomberg, 2009, “Bloomberg”
  20. ↑ Reuters, “Reuters”
  21. ↑ Financial Times 2011, "Financial Times"
  22. ↑ Valor Economico 2011, " Valor Economico"
  23. ↑ Financial Times 2012, "Financial Times"
  24. ↑ Valor Economico 2013, "Valor Economico"
  25. ↑ Forest Legality Alliance,"FLA"
  26. ↑ Katerva Awards, "Katerva Archived 2015-09-14 at the Wayback Machine "
  27. ↑ Moore Foundation, "Moore"
  28. ↑ Avina Foundation, "Avina Archived 2015-09-23 at the Wayback Machine "
  29. ↑ Oxford Climate Policy website, “Oxford Climate Policy website”
  30. ↑ UNEP, “UNEP Archived 2016-03-05 at the Wayback Machine ”
  31. ↑ IPCC, “IPCC Archived 2018-11-03 at the Wayback Machine ”
  32. ↑ USP, “USP Archived 2011-08-25 at the Wayback Machine ”
  33. ↑ UNDP Profor, “UNDP Profor Archived 2012-03-25 at the Wayback Machine ”
  34. ↑ Wall Street Journal, “Wall Street Journal”
  35. ↑ YouTube, “YouTube”
  36. ↑ Biofuel Watch, “Biofuel Watch”
  37. ↑ Oxford Climate Policy website, “Oxford Climate Policy website”
  38. ↑ Climate Bonds Initiative website, “ClimateBonds Initiative website”
  39. ↑ IISD press release, “ISSD press release Archived 2011-09-27 at the Wayback Machine ”
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