Following its successful premiere in June 2004, CARBON EXPO � Global Carbon Market Fair & Conference � will continue to build on its leading role in 2005 as the world�s only fair and conference for emissions trading and the carbon market. From 11th to 13th May 2005, the fair will present the entire value-added chain for ensuring an effective emissions market. The organizers � the World Bank, the International Emissions Trading Association (IETA) and Koelnmesse � expect that the event will attract 134 exhibiting companies from 50 countries to Cologne, representing an increase of more than 100 per cent compared to last year (50 exhibitors). The exhibitors will include consulting firms, banks, legal consultants, issuers of certificates/verification, institutions, project developers, trading platforms, financial service providers, suppliers of software and technology, suppliers of emissions certificates and companies and government representatives from developing countries.

Two countries will be staging group presentations for the first time: nine companies and institutions from Spain will be showcasing their products and services at the Spanish Pavilion, while the UK Village will bring together 12 British companies. At the international forum, these exhibitors will present services and products for an effective emissions market and state-of-the-art technology for the reduction of carbon emissions to trade visitors from all over the world. About 1,000 participants are expected at CARBON EXPO 2005.

More than �1 billion in capital meets environmental protection projects

CARBON EXPO 2005 will be bringing together carbon funds for emissions reductions projects, for more than �1 billion in capital. The key objective of these projects is to use clean technologies to produce energy in such a way that greenhouse gas (GHG) emissions, which produce global warming and climate change, are kept to a minimum. The savings of GHG emissions that result from replacing other, conventional, technologies, are credited as emission reductions, which can in turn be sold following the appropriate certification.

Official opening with top-class speakers

CARBON EXPO 2005 will be officially opened on 11th May by B�rbel H�hn, the Minister of the Environment and Nature Conservation, Agriculture and Consumer Protection of the state of North Rhine-Westphalia; Joke Waller-Hunter, Executive Secretary of the Climate Secretariat of the United Nations; Margaret Becket, the UK Secretary of State for Environment, Food and Rural Affairs and Arturo Gonzalo Aizpiri, Spanish Secretary of State for Contamination and Climate Change Prevention.

CARBON EXPO 2005 will be a trade fair and a conference platform

Both areas � the trade fair and the conference � will create the connections between the sellers and buyers of emission rights and their intermediaries that are necessary if the carbon market is to function successfully. Two forces are driving the emissions market forward: the international commitment to reduce GHG emissions as stipulated in the Kyoto Protocol and the EU-wide Emissions Trading System (ETS), which went into effect in January 2005. These are supplemented by voluntary measures of multinational companies and industries aimed at making a contribution to protecting the climate.

In addition, the fair and the conference will provide visitors with excellent opportunities to learn about the possibilities of investing in CDM/JI projects or gaining the necessary funding. Carbon finance is designed to promote private and public investments in projects aimed at reducing GHG emissions in order to mitigate the effects of climate change and support sustainable development.

The trade fair as a source of new business and partnerships

At CARBON EXPO, providers of technology, buyers and sellers of emission certificates, consultancy firms, service providers (for monitoring, certification etc.), project developers and companies and government representatives from developing countries will find a professional business platform on which they can present their products, technologies and services and win over new customers.

In addition, the fair serves as a perfect forum for establishing new partnerships both on a private level and with the goal of creating public-private partnerships. This is particularly important since municipal utilities and state-run power companies in many countries are subject to the EU emissions trading directive.

As was the case at the premiere event in 2004, the United Nations Framework Convention on Climate Change (UNFCCC) will again be exhibiting at CARBON EXPO to provide information about the challenges posed by climate change and the Kyoto Protocol.

New: One-day trade fair ticket

One-day tickets for the trade fair, priced at �80, will be available for the first time in 2005. These entitle the holder not only to visit the fair and side events, but also to lunch and beverages.

Environmental protection regulated with market mechanisms

The importance of establishing a global carbon market using financial mechanisms cannot be underestimated. It is an attempt by the international community to counter a global environmental crisis with innovative market mechanisms. In addition, carbon finance serves as a framework for developing innovative solutions for reducing GHG emissions with the help of the private sector in industrialized and developing countries. Moreover, this sector has proved that it can effectively push developments forward to promote the transfer of clean technologies and improve soil usage in the developing countries and emerging markets that are most severely affected by climatic change.

As a result, 29 host countries from Africa, Asia, North and South America and central and eastern Europe will once again present their emission-reduction projects at CARBON EXPO in 2005, along with their respective investment conditions and funding opportunities. The World Bank endeavours to fund the participation of project developers and government representatives from 25 developing countries and economies in transition. At CARBON EXPO 2005, these countries will present CDM/JI projects that are ready for purchase to interested buyers, with the World Bank acting as buyer of last resort.

The Kyoto Protocol has made developing countries attractive as locations for projects aimed at reducing emissions and as partners in the effort to protect our climate. CARBON EXPO 2005 will be offering companies an outstanding opportunity to find out how and where they can acquire emission certificates by exporting emission-reducing technologies, thus generating additional income for their investment. Another focus will be on reducing the risks and uncertainties associated with private investments in projects for reducing greenhouse gas emissions in developing countries and emerging markets.

The conference: Unique range of information has been reorganized

In 2005, the conference offerings at CARBON EXPO will be substantially expanded. The changes were made on the basis of an exhibitor and visitor survey conducted in August 2004. As a result, the duration and the topics of the individual events have been optimized. The conference will be divided into five areas titled "Sectoral Sessions", "Workshops", "Knowledge Mart", "Project Corner" and "Open Side Events". In order to present the key topics of the conference in greater depth and allow for more detailed discussion, the length of the morning events has been extended from one hour to three hours.

The conference programme is tailored to the needs of different sectors, including waste management, renewable energy and energy efficiency in industrial processes. In addition, CARBON EXPO 2005 offers high-level plenary sessions on the state of the carbon market in 2005, the outlook for the European Emissions Trading Scheme, and a forum with the CDM Executive Board.

The conference in detail:

Sectoral Sessions:
The Sectoral Sessions are aimed at buyers and sellers of emission certificates and at the providers of the requisite technology. The topics to be addressed include

- Market opportunities for emission-reduction technologies

- Fully developed projects in which companies can now invest or for which
they can purchase emission certificates

- The Baseline Methods that are currently available and information on how
they are set up. The baseline is the figure for the greenhouse gas emissions that would result if the planned project-related measures were not implemented. A Baseline Method serves as the basis for calculating by how much emissions can be reduced by a particular CDM project.

- Additionality assessment: According to the Kyoto Protocol, emission reductions generated by CDM/JI (Clean Development Mechanism/Joint Implementation) projects must be additional to those that would otherwise occur. Additionality is established when there is a positive difference between the emissions that occur in the baseline scenario and the emissions that occur in the proposed project.

- Real case studies will be used as examples.

Workshops:

Experts from IETA, World Bank Carbon Finance Business and more than 100 companies active in the carbon market will be offering in-depth training events on issues such as the sale and purchase of emission certificates, CO₂-reducing technologies, and the opportunities and prospects for industry that result from emission-reduction projects (CDM/JI projects) in developing countries and emerging markets. In addition, numerous workshops will show how emissions can be reduced through the mechanisms of the Kyoto Protocol.

Special workshops regarding the EU ETS will deal with issues that include:

- What determines the price of EU emissions allowances?

- EU carbon market and key drivers

- The impact of the weather and weather forecasting on certificate prices in
the EU

- Trading for the second EU ETS period

- The role of finance market supervisory authorities in EU emissions trading

- Differences in registry regulations across the EU

- Regulatory differences across the EU

- Comparison of different emissions trading contracts

As a result of the tremendous response in 2004, CARBON EXPO will again feature a workshop especially for journalists (11th May 2005).

Knowledge Mart:

Experts will be on hand to hold one-to-one discussions. Possible topics include:

- Creating value with emission reductions

- Presentation of project structures and cycles, and frameworks for costs and schedules

- What kinds of investment opportunities on Carbon Funds exist?

- Drafting of contracts for emissions reduction projects

- Legal aspects of emissions trading

- Tax assessment of emission-reduction projects

Here, participants can meet for a personal talk with leading practitioners from the private and public sectors, including: specialists in carbon asset creation and management, carbon contracting and deal structuring, issues of CDM eligibility and methodologies as well as verification and monitoring; and on the regulatory framework for carbon trading in EU and non-EU countries.

Speakers from workshop and plenary sessions as well as other experts will be available for free one-on-one sessions of 15 to 20 minutes to answer questions put by the participants.

CARBON EXPO Project Corner:

CARBON EXPO offers the participants an opportunity to buy emission reductions from CDM and JI projects. Guest countries and project developers exhibiting at CARBON EXPO will bring to the event at least 250 project ideas and 50 project design documents that are ready for sale/negotiation. The majority will be pre-scanned for quality by an IETA/World Bank expert panel.

Open Side Events:

More than 35 exhibitors at CARBON EXPO 2005 will hold their own workshops and seminars free of charge. These side events feature topics such as:

- Developing a comprehensive approach to corporate carbon risk

- Preparing for annual verification under EU ETS

- Impact of EU ETS on industry

- Competitiveness, monitoring and reporting systems under EU ETS

- Leveraging forecasting tools and expertise for better EU ETS compliance strategies

A number of industry associations and institutions, including the European Commission, the European Federation of Energy Traders (EFET) and EURELECTRIC (the union of the electricity industry), will be staging their own events parallel to CARBON EXPO.

In addition, the supporting programme offers conference participants an informal setting for making contact with one another.

The conference is primarily targeted at

- The approx. 9,000 companies affected by the EU emissions trading directive, i.e. managers from the energy industry and energy-intensive industries (the corporate development, environmental management, technology, finance and legal affairs departments of affected companies)

- Managers from banks, stock exchanges, brokerage firms, insurance companies, associations, business consultants and law firms

- Suppliers of emission certificates

- Engineering firms and technical-inspection associations

- Government representatives

- Project developers for emission-reduction projects in developing countries and emerging markets

For information on the conference programme and online registration go to: www.carbonexpo.com

Partners of Koelnmesse

The partners of Koelnmesse combine the maximum expertise that is presently available in this field. The World Bank initiated the first fund for the reduction of greenhouse gases in developing countries and emerging markets. IETA is a non-profit industry association that actively promotes the establishment of a worldwide market for greenhouse gases in order to help meet the challenges associated with climate change. It represents more than 100 leading international industrial companies, suppliers of technical inspection services, brokerage firms and providers of financial and consulting services.

CARBON EXPO Party: "Meet the Carbon Market"

After its tremendous success last year, the "Meet the Carbon Market" party at CARBON EXPO will also take place in 2005. The party will be held at the adjacent Rheinterrassen at 7:00 p.m. on 11th May 2005. Participants will have not only an excellent view of the Rhine but also the opportunity to conclude the first day of the trade fair in a relaxed atmosphere with a K�lsch beer or a glass of wine and enjoy the entertainment, music and dancing.

Further press information is available at www.carbonexpo.com/pressinformation.

For information about participating in the trade fair and conference, as well as travel arrangements, accommodation, presentation kits for exhibitors and trade fair services available in Cologne, call the hotline on +49 (0)221/821 3097, or fax +49 (0)221/821 3098, or e-mail [email protected]. Alternatively, visit the website at www.carbonexpo.com.

You can obtain more CARBON EXPO information and photo material at www.carbonexpo.com. Additional information on the World Bank�s Carbon Finance Business is available online at http://www.carbonfinance.org, or at http://www.prototypecarbonfund.org. You will find further information on IETA at www.ieta.org.