Will Sandbag cancel other forms of emissions permits or credits or just use EU permits?

The carbon market is primarily a tool for western rich countries who have targets under Kyoto to meet those targets.

At the moment the EU is the only country to have a scheme up and running but we expect other countries such as the US and Australia to follow suit soon and they will most likely link to the EU scheme.

So that less developed countries can receive funding for projects that reduce emissions in their countries, the rules allow them to generate and sell allowances into the market. These allowances are called Certified Emissions Reductions (CERs) and can only be released after the UN has approved the emissions saving projects they come from.

We only intend to purchase EU allowances (EUAs) at the beginning because these are the most easy to track and we want to make a point about the need to hand out fewer in the first place. Because the number of EUAs is limited we also stand a far greater chance of influencing prices in this market than we would in the CER market where the supply of permits is effectively unlimited. That said we need to market test our ideas and we may also purchase from other schemes and from projects in developing countries in the future. We’ll be completely transparent if we do this and you’ll be able to choose and see what you’re buying.