Regulatory aspects of carbon credits and carbon markets

Regulating carbon markets in order to fight the effects of climate change has in recent years become an integral part of many economies around the world. Ensuring that policymakers implement market-based climate change legislation according to international best practice is an essential part to guarantee that a carbon market system operates smoothly within a country’s economy. There are many opportunities that exist in South Africa towards developing a lucrative carbon market; however, the information to implement such a system is hard to come by and complex to analyse. This dissertation will aim to shed some light on this relatively new field of the law as it will provide an overview of international best practice within the carbon market sphere. Furthermore, this dissertation will examine the legal nature of a carbon credit; analyse international instruments regulating carbon markets and discuss existing South African policies and legislation related to climate change and carbon markets. This will lead to the ultimate objective of this dissertation: to propose a possible framework for the regulation of a South African carbon market based upon international best practice. This dissertation revealed the imperative need for South African policymakers to implement legislation to conform to international best practice within carbon markets. In this regard the dissertation also revealed that the infrastructure to regulate such a market already exists within South Africa. Only subtle changes to these infrastructure systems will be required in order for to accommodate a functioning carbon market. The study revealed that the only way to convince entities around the world to emit fewer emissions and to contribute towards the fight against climate change is to attach a monetary value to emissions. Associating a price to carbon is the only way to sanction entities that produce emissions and compensate entities that mitigate emissions. A carbon tax coupled with a carbon offset mechanism, as opposed to a emissions trading scheme, would be the best option with regards to establishing a South African carbon policy. This will ensure a fair playing field, as carbon tax liable entities would be held responsible to pay the same fixed price per ton of carbon that they emit. Coupling the carbon tax with a carbon offset mechanism, trading with carbon credits, will incentivise companies to invest in “greener” technologies and to emit fewer emissions. This dissertation revealed that international best practice in the carbon market sphere, still poses significant difficulties such as price volatility associated with carbon credits; validation and verification inconsistencies within the different carbon standards; and supply and demand fluctuations. These difficulties where highlighted in this dissertation and solutions relating to these difficulties were discussed. The time has come for South Africa to enter the carbon market sphere, whether it be through the introduction of a carbon tax or otherwise. This dissertation illustrates that the infrastructure and stakeholders associated to a South African carbon market needs to be developed. If, when and how the government will actually implement such a carbon market system, remains a question to be answered

SUSTAINING PRIVATIZATION

This dissertation examines the factors associated with sustainable privatization of infrastructure projects. Privatization offers a way for governments to make infrastructure delivery more effective and efficient than exclusively public provision, but often the promise is fraught with peril. The three essays that constitute this dissertation seek to use empirical data and analysis to answer three selected questions regarding sustainable privatization: ,,h What causes the private sector to exit from infrastructure projects? ,,h Do Public-Private Partnerships (PPPs) provide value for money to governments? ,,h Does privatization lead to benign outcomes? The first essay of this dissertation takes the broadest view, looking at cross-country, cross-sector regression analysis to unearth patterns in infrastructure privatization failures - with a view to understand as well the factors that lead to success. The second essay takes a further step from the broad overview of the first essay by looking in detail at individual projects and examining what factors could lead to better value for money to governments. Finally, the third essay looks at the choice between asset sales and share issue privatization as two specific methods for privatization and their subsequent impact on the performance of the privatized company. The three essays thus represent a progression from survival to good health and finally to growth. My major conclusions are: ,,h Project cancellation rates, though rising, are still low. Although ownership may change hands, for the most part, the private sector is staying in private infrastructure projects. ,,h Although trends in cancellation may not be an issue for private infrastructure projects as a whole, it is a concern in the water and sewerage sector. The high probability of cancellation and relatively low level of fresh investment in the sector suggests a declining role for the private sector in making available this essential service. ,,h There is value for money to governments from entering into Public-Private Partnerships in infrastructure. ,,h Divestment leads to significant improvement in profitability, efficiency, and real output of firms, besides providing some fiscal boost to the government. However, the impact on employment is negative

Offshore transportation of Norwegian gas to Europe: the case of the Barents Sea gas infrastructure

This study is concerned with Norway’s role in supplying gas to Europe through offshore pipelines. One reason for choosing this topic is the difference in available research between the number one supplier of gas to Europe, Russia, and the number two, Norway, where there is much less published research. This study aims to bridge the gap by considering, for the Norwegian gas Sector, issues of gas supply, a competitive gas market, a sustainable effective, efficient offshore infrastructure and access for all where and when it is required. It further explores whether the regulation of the Norwegian Gas Sector, through national regulations, the Gas Target Model and three EU gas directives is meeting its goals or actually hinders development. Another reason to choose this subject is the low volume of investments in the Norwegian gas offshore infrastructure, which consequently will lead to reduced volumes of supply. In relation to the abovementioned, the third reason is to investigate whether current and anticipated prices justify further investment in Norwegian natural resources and offshore infrastructure. The fourth reason is to explore the possibilities and preferences for Europe to support investment in Norway’s most promising sector, the Barents Sea, or if competition and pricing do not warrant further investment

The merits of the Iranian petroleum contract model to meet the development needs of Iran’s oil resources sector

This research provides an examination of the Iranian Petroleum Contract (IPC) system from inception to the present day. First, the thesis analyses the expansion of petroleum contracts from the initial Concession Agreements to the termination of all obligations following the Islamic Revolution of 1979 and the Nationalisation Movement. Second, the thesis examines the ongoing policy tension between the Iranian oil industry’s need to access foreign funding and technology and its aim to avert foreign exploitation of its natural resources. Focus is given to the impact of this tension on Iran’s current position regarding foreign investment and the development of the current contractual model. In this context, the thesis compares the Buy Back Contract as a model for access to Iranian petroleum in the period since 1989 with the IPC model, noting that the latter is fundamentally characterised by the provision of funds by foreign investors for the development of oil fields. The thesis argues that the IPC model, where rights are granted to successful foreign investor companies to access their capital, technology, and know-how in exchange for remuneration and the potential reward for successful production, is essentially a compromise approach that addresses the twin national priorities of (1) accessing international funds, expertise and services while (2) constraining the exploitation of natural resources by foreign parties. The thesis provides an extensive analysis of the IPC structure and relative advantages via a comparative analysis with the Buy Back Contract model. The thesis also analyses other major contractual models in the international arena and assesses their suitability for the oil industry in Iran. The thesis concludes that notwithstanding the demonstrable flaws in the IPC model, its revised terms and conditions regarding key elements related to contract length, risks borne by investor companies, and the mechanism for remuneration approach make it the best contract structure to meet the development needs of Iran’s oil and gas sectors. Based on this conclusion, the thesis recommends that in the current economic, political and legal climate, the IPC model provides a framework for Iran to initiate reforms to its resources sector while at the same time preserving Iran as an attractive option to foreign investors

Cross-Border Oil and Gas Pipelines: The Intersection of Politics, Geography, and Energy Markets

The emerging trend of cross-border oil and gas pipelines in Eurasia has immense geopolitical and energy market implications. With the changing landscape of global energy markets, both key consuming and producing states have strategic reasons to forge new transit routes and diversify supply lines with new overland (or undersea) pipelines. This dissertation examines what brings countries into binding cross-border oil and gas pipeline deals and why some proposed pipeline projects materialize quickly while others do not. It aims to provide a more systematic explanation of how politics and energy markets are interconnected in the choice of supply routes and of how political and economic factors play out interactively in decisions regarding cross-border pipeline projects. The dissertation employs statistical analysis and case studies to advance the hypothesis that, in addition to market considerations, the successful launch of a cross-border pipeline project and the speed of the deal depend on geopolitical factors, political alignment between host country governments, and pipeline ownership structure. The statistical analysis tests this argument through the dataset I constructed of all existing and proposed cross-border oil and gas pipelines in the world. The dissertation then examines four case studies: (1) the completed Eastern-Siberia Pacific Ocean (ESPO) oil pipeline from Russia to China; (2) the planned Altai and Power of Siberia pipelines, designed to bring gas from Russia to China; (3) the completed Baku-Tbilisi-Ceyhan (BTC) pipeline carrying Caspian oil to West from Azerbaijan via Georgia and Turkey; and (4) the planned Southern Gas Corridor (SGC) pipelines, designed to bring Caspian gas to Europe from Azerbaijan via Georgia, Turkey, Greece, Albania, and Italy. The dissertation finds that geopolitical factors profoundly shape energy relations and affect the likelihood of successful pipeline deals and their speed regardless of the degree of economic incentives involved in the project. Second, the degree of political alignment between host countries and the ownership structure of pipelines likely determine the success of cross-border pipeline deals. Third, the political-economic arrangements among host countries affect the likelihood of successful pipeline deals and their speed more significantly in the field of natural gas than in oil

China's African FDI safari : opportunistic exploitation or muturally beneficial to all participants

When implemented within a favourable legislative framework, Foreign Direct Investment (FDI) can produce domestic growth-enhancing spillovers in host countries. Other potential positive effects include the provision of investment capital, the creation of local employment and the transfer of sophisticated technology or advanced knowledge. African nations in particular have been historically reliant on externally-provided funds. Prevailing low income levels, marginal savings rates and the absence of functioning financial markets necessary to provide local start-up capital continue to keep Africa reliant on foreign inflows. Considering China’s increasing financial commitments to Sub- Saharan Africa (SSA) over the last decade, this study examines the state of current Sino-African investment relationships. Specific attention is paid to the outcomes of this strategic bilateral alliance in order to determine whether or not a mutually beneficial investment relationship has evolved. The distinct nature and structure of, the motivation behind and the most significant determinants of Chinese FDI to SSA are all analysed in accordance with traditional FDI theories. A case study approach is used to establish whether China’s contemporary interest in SSA differs from historical investments and to also investigate country-specific commonalities and differences. Of particular relevance to SSA are resource-backed Chinese loans that finance major infrastructure projects in host nations. Interestingly, a lot of the Sino-African investment packages resemble similar deals struck between China and Japan in the 1970s. The results of this study indicate that China’s investment motives seem more diverse than initially expected. Resource-seeking, profit-seeking and market access-seeking reasons appear to be the most important motives. After establishing the Top- Ten recipients of Chinese FDI in SSA, these nations are then classified into three major categories: resource-, oil- or agricultural-rich nations. Undiversified resource- or oil-rich economies are found to have secured the largest shares of Chinese FDI. This study suggests that China’s contemporary “African Safari” is an unconventional way of providing financial assistance. Rather than solely supplying FDI, China finances a diverse mix of instruments, the most important being concessional loans, export credits, zero-interest loans and the establishment of Special Economic Zones. A profound difference to traditional Western investment packages is China’s non-interference approach. Accordingly, Beijing not only refrains from intervening in host countries’ domestic affairs but also refuses to attach formal conditionalties to its loans. China’s “financial safari” into Africa has produced many positive as well as negative effects in host countries. Nevertheless, it would seem that the positive effects outweigh the negative and China’s FDI could contribute to sustainable development in SS

Towards an Emissions Trading System in Mexico: Rationale, Design and Connections with the Global Climate Agenda

This Open Access book provides detailed information about the incoming Mexican Emissions Trading System, including an analysis on why the system was implemented, how the system was designed, how it operates, how it could work, and how it could be strengthened by 2023 when it will be formally launched. This document is aimed at those who want to understand how an ETS can operate in an emerging economy. Although it has been written for experts and non-experts, this book does not provide the underlying theory of market-based instruments and emissions trading systems in general. The book can be read from start to finish, but can also be used as a reference for specific components of regional ETSs. The book draws upon a meticulous study of background documents and fieldwork from different authors to tell the story of how a Mexican ETS, the first of its kind in Latin America, can be set in the country. The emissions trading system cover many greenhouse gas emissions and has been hailed as one of the cornerstones of the Mexican climate policy. The book also examines and explains how the ETS is designed and implemented

Revenue recognition, January 1, 2019; Audit and Accounting Guide

https://egrove.olemiss.edu/aicpa_indev/2422/thumbnail.jp

Towards an Emissions Trading System in Mexico: Rationale, Design and Connections with the Global Climate Agenda

This Open Access book provides detailed information about the incoming Mexican Emissions Trading System, including an analysis on why the system was implemented, how the system was designed, how it operates, how it could work, and how it could be strengthened by 2023 when it will be formally launched. This document is aimed at those who want to understand how an ETS can operate in an emerging economy. Although it has been written for experts and non-experts, this book does not provide the underlying theory of market-based instruments and emissions trading systems in general. The book can be read from start to finish, but can also be used as a reference for specific components of regional ETSs. The book draws upon a meticulous study of background documents and fieldwork from different authors to tell the story of how a Mexican ETS, the first of its kind in Latin America, can be set in the country. The emissions trading system cover many greenhouse gas emissions and has been hailed as one of the cornerstones of the Mexican climate policy. The book also examines and explains how the ETS is designed and implemented

UN Environment Guide for Energy Efficiency and Renewable Energy Laws

This Guide is written as a sequel to the 2007 UN Environment Programme Handbook for Legal Draftsmen on Environmentally Sound Management of Energy Efficiency and Renewable Energy Resources. This Guide, as the Handbook, is written in response to needs expressed, particularly by energy efficiency and renewable energy project initiators, government officials, energy managers, project developers and particularly developing country energy legal draftsmen, asking for assistance in drafting legislative provisions for promotion and implementation of sound energy efficiency and renewable energy programs. The Guide describes the key legal issues associated with efficiency and renewable energy resource development, and presents legislative options from both developed and developing countries for dealing with them, including sample excerpts from legislation. A new section is included describing available mechanisms for financing energy efficiency and renewable energy projects. Another section has been added providing case studies analysing the laws of a variety of countries, namely from Colombia, the Philippines, Pakistan, South Africa, Ghana and Korea. The Guide is designed to be user-friendly. Accordingly, it has been written as a stand-alone document, not requiring back and forth reference between the Guide and the Handbook. As was stated in the Handbook, “the focus here is on national legislation, but encompasses national constitutional provisions, regulations and state and local laws where they are the key determinants of the promotion of efficiency and renewable resources. Emphasis is placed on adaptation to local country needs and conditions.” The Guide is divided into seven sections. Section One, Issues of General Application, contains legislative information on issues pertinent to all energy efficiency and renewable energy applications. Section Two, Energy Options, describes the choices to made evaluating energy efficiency and renewable energy in the context of the other available energy resources. Section Three, Project Financing, describes a range of financing methods and resources that have been used successfully