Since 2005, with the singing of the "Kyoto Protocol", we live in a Carbon Friendly Economy and this affects all businesses and each and everyone.
Basic principle how to make money in it : participate in international and multi-diciplinary team.
Example: I live in Brussels, Belgium. Our government and its 50% largest CO2e-emitting companies HAVE to reduce their CO2e-missions and buy CO2e-certificates (from groups that developed CO2e-reducing projects) for all the CO2e-emissions they cannot reduce themselves.
Prices for CO2e-certificates:
* 2005: 5 €
* 2006: 10 € = 100% increase versus 2005.
* 2007: 15 € = 200% increase versus 2005.
* 2008: 25 € = 400% increase versus 2005.
Andrei Marcu, president of the International Emissions Trading Association (IETA) : “...Carbon emissions trading will probably double to at least $60 billion this year (2007),...”
According to “Potential of Carbon Market “ – UNFCCC: “…from 2000 through 2050 are between 1995 USD 1.2 and 14.9 trillion – annualized … USD 72–775 billion”.
In 2006, a group of countries (France, Belgium, Poland, some Baltic States) and industrialists tried to sink the Kyoto Protocol and nearly succeeded. But since the European Comission finally decided in 2007 to continue with the "Kyoto Protocol" untill at least 2020 or 2030 and to increase the CO2e-emissions to -20, -30%, it is clear that the Carbon Friendly Economy is there and that it affects every business sector.
A strong financier/bank group here in Europe invested in a traditional energy company burning coal to produce its electricity. Since 2005, they are afraid: what if the energy company to whom they gave big loans and credits, cannot reduce its CO2-emissions and cannot find CO2-certificates ? Then it will not be allowed to burn coal ... no coal=no heat=no steam=no turning turbines that make electricity=no revenues to pay back the loans/no return on the shares...
So both this financial group and the energy group and its government by the way are looking for groups that can develop CO2e-reducing projects ...
What can we offer them:
Option 1: they give us 10 million €, and we will put e.g. 10 WindTurbines in Europe
Option 2: event better maybe if allowed by the management: with 10 million €, we put 20 windturbines in a developing country ... cheaper labor ... etc. 20 windturbines produce 2 x more CO2-certificates than the 10 in Europe. First Conclusion: thanks to the Kyoto Protocol, there is a transfer of technology, money from rich-non sustainable life-style countries to developing countries...local jobs are created etc.
Option 3: even better: since the prices of WindTurbines and PhotoVoltaics are so high, we offer the financier an opportunity to invest in an innovative r&d team that has developed a new type of windturbine or photovoltaic ... so they will get their PV at maybe 1/2 of the market price...
Option 4: even better: since you and me work together ... and you are located in a developing country ... it is very easy for you to get in contact with a company that understands PhotoVoltaics or that has enough references in similar fields that it dares to take the responsibility to erect and operate Windturbines in your region... so we offer the financier on top of "Option 3", not only their own PV-patent and manufacturing, but we are also going to produce the windturbines locally ... and erect and operate them with the contact you brought us in contact with... This way the financier from Belgium gets a much higher return on investment.
Option 5: And we can even do better ... imagine we combine 2 R&D technologies or techniques : in stead of putting 15 km2 of PhotoVoltaics far outside the town, we put them on the roofs of the public buildings, schools and citizens ... together with that innovative wind-turbine and little biogas-R&D innovation and an Electric car and scooter, and hot water solar collector integrated in the PhotoVoltaics ...
So lets recap:
IROI&RR 1: Improved Return On Investment & Reduced Risk for the investor number 1: the PhotoVoltaics are not somewhere in the middle of nowhere ... but safely 10 or 20 m high on the buildings
IROI&RR 2: no losses in transport of electricity ... since the electricity and biogas etc is produced there where it is needed : in the buildings
IROI&RR 3: PhotoVoltaics and Winturbines at reduced price ... since the financier is also a shareholder in the R&D company that invented them
IROI&RR 4: and... the Financier also is a shareholder in the Joint-Venture with the company in your company that is producing, installing and operating & maintaining them ... so that's also at reduced costs... it's the financiers own company too.
IROI&RR 5: combination of technologies ... if the sun is not shining ... the biogas is still working and maybe the wind is blowing ... and at night ... when nobody needs electricity when everybody is asleep, the electric scooters and cars are charging their electricity
How much money do we make ?
Imagine some 10 million € project ...
* 2% = 200.000 € for the team that brings all parties around the table via Limited Partnership Agreements (Imagine parties would like to team up for the realisation of a 10 million € CO2 reducing project, party 1 brings the technology at this price, party 2 arranges the land+buiding permission+exploitation permission, party 3 brings 50% of the investment, party 4 will install the technology ... will you then be ready to ... and then they fill out what they will do.
* 8% for the team also develops the business plan+shares in the company = recurring revenues from the sale of electricity/biogas etc. Alternative: if you have references, the 8% can be exchanged for a salary e.g. 525€/consulting day x 6 months to make the business plan + 2% shares IF the financier will decide to implement the project and the better the estimates and information assembled... the higher the 2%.
Looking forward receiving your Limited Partnership Agreement.
Good & Fast Business & Good Discussion,