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Carbon Valuation Post 2012

PwC's climate change team examine the thorny issues around valuing carbon assets on company balance sheets after 2012, in the face of considerable policy uncertainty.

As the climate negotiations plod along to Cancun, businesses with investments in carbon projects or portfolio s of carbon contracts are now feeling the impact of policy uncertainty on their balance sheets. The use and treatment of CERs (certified emission reductions from CDM projects) post-2012 is contentious, and decisions by the CDM Executive Board and the European Commission are affecting the willingness of investors to develop new projects and the value of carbon contracts.

  • Will the CDM continue to operate as it does today?
  • How will the EU restrict the use of CERs in the EU ETS?
  • How should companies consider carbon assets in the light of International Accounting Standard 39?