Investor Presentaiton

Carbon Pricing or Carbon Economic Value (NEK) is a part of a comprehensive policy package for climate change mitigation Emission Trading System First Period End of Period Gra DY anak and Entity B have the same Emission Allocation allocation Certificate A Emission Obtained 01. Trading instruments, consists of 2 types: a. Emission Trading System (ETS) an entity that emits more buys emission permit from other entities that emits less b. Crediting Mechanism: entities undertaking emission reduction activities can sell their carbon credits to other entities requiring carbon credits Entity A at the beginning of the period Emission Offset 02. Non-trading instruments, consists of 2 types: a. Carbon tax, imposed on carbon content or carbon emitting activity b. Result Based Payment (RBP): payment is given as a result of emission reduction B C Emission Reduction Certificate Initial Emission Final Emission Emission Obtained Carbon Tax Result-Based Payment A has an allocation surplus that can be sold to B B Euals E-lal B is a business entity that is subject to a cap C is a business entity that is not subject to a cap Carbon Content GRK Emitting Activities Non-Trading No carbon rights transfer 13 16

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