Pedro Moura Costa
Encyclopedia
Pedro Moura Costa is an entrepreneur involved in environmental finance with a focus on the international efforts for greenhouse gas (GHG) emission reductions. Of particular relevance, he was the founder and President of EcoSecurities
Group Plc., one of the leading projects developers for the international carbon markets, and has written widely about the policy and science of climate change mitigation, including contributions to the Intergovernmental Panel on Climate Change
(IPCC) reports that were recognised with the Nobel Peace Price in 2007.
While the concept of ‘joint implementation
’ of greenhouse gas (GHG) emission reduction projects (also called "carbon offset projects") was launched at the United Nations Conference on Environment and Development
(UNCED, “the Earth Summit”), the early carbon offset projects of the 1990s suffered from a lack of specialised services to support them. One service of particular importance is that of independent verification of carbon offsets, as offsets are dependent on proving a shift of behaviour in relation to a baseline (this shift is referred as "additionality", in the sector).
Moura Costa identified the absence of independent verification services as one of the limiting factors to the growth of the carbon market at that time, and in 1996 he developed the first carbon offset verification service worldwide, which was licensed to the Swiss certification company SGS (Société Générale de Surveillance). The first client for this certification service was the Costa Rican National GHG Mitigation Programme, developed by OCIC
(Costa Rican Office on Joint Implementation). After the launch of the Kyoto Protocol
(see below), independent certification of carbon emission reductions became a mandatory requirement under the rules of the Clean Development Mechanism
(i.e., the carbon credits of this mechanism are called CERs, meaning Certified Emission Reduction
s).
To pursue the work with SGS and the government of Costa Rica, Moura Costa created EcoSecurities
, a company specialised in the development of greenhouse gas mitigation projects.
was signed creating binding commitments for reductions in greenhouse gas emissions among industrialised countries. It also created the Flexibility Mechanisms
, Joint Implementation
and the Clean Development Mechanism
(CDM), that enabled the creation and use of carbon credits from greenhouse gas emission reduction projects. Carbon trading gradually evolved from being a niche environmental activity to becoming a global market that in 2010 mobilised over € 120 billion, including trades under the European Union Emissions Trading Scheme and the UN flexibility mechanisms.
As carbon markets evolved, Moura Costa was particularly interested in making investors and analysts incorporate the impact of greenhouse gas emissions on company valuations. In 1999, he co-ordinated the development of the carbon trading component of Australian Plantation Timber, a forestry investment fund, the first time ‘carbon value’ was included in an investment prospectus. Gradually, investor awareness of climate and environmental issues increased, and as a result of that (and contributing to this trend) a series of companies in the carbon market sector floated on stock exchanges in 2004-2006.
The adoption of binding emission reduction commitments by the Kyoto Protocol created a positive environment for more carbon offset project development companies to be created worldwide. Benefitting from an early mover advantage, EcoSecurities rapidly expanded and established a significant market share. In December 2005, EcoSecurities listed on the London Stock Exchange
(AIM) raising capital for its expansion, one of the first companies in this sector to be listed. As President and COO, Moura Costa coordinated the expansion of the company, from 30 to 300 employees, establishing the firm’s offices in 28 countries worldwide. In 2007, the company raised a second round of capital from the stock markets, and attracted Credit Suisse
as a strategic partner.
During the period he was involved with EcoSecurities, from 1997 to 2009, the company developed more than 450 CDM projects in over 40 countries and, between them, using over 20 different technologies. The company was a pioneer in many aspects of the sector, including the development of the first project registered by the CDM (the NovaGerar landfill project in Brazil), and the first project to receive CERs (a small-hydro project in Honduras). With a view to broadening its reach, he led the company to develop new divisions focused on specialised technologies related to greenhouse gas abatement. Among them, EcoMethane, a division specialised in the creation of projects for the collection and destruction of methane from landfill sites, and a division for the development of N2O abatement projects, focusing on nitric acid factories. Moura Costa was also the fund manager of the EcoSecurities-Standard Bank
Carbon Facility, which invested in projects on behalf of the Government of Denmark and, subsequently, EcoSecurities also run similar funds on behalf of the governments of Austria and Japan.
In April 2009, Moura Costa resigned from EcoSecurities to conduct a take-over bid to acquire control of the company, together with Brazilian investment group BTG
. This resulted in an international competition for the acquisition of the company and in October 2009 EcoSecurities was acquired by JP Morgan.
Special Report on Land Use, Land Use Change and Forestry and other IPCC reports, recognised with the Nobel Peace Price in 2007. He has also written on forestry, low impact logging, and innovative financial mechanisms for the environment.
His work has been covered widely by the international media, including cover features in the Wall Street Journal, Director Magazine, Future Fuels, articles in Fortune Magazine, Sunday Times, Forbes, Estado de Sao Paulo, and TV and radio interviews with TV Globo, BBC and others. Moura Costa is regular speaker in conferences and universities, promoting innovative solutions for environmental challenges, including climate change mitigation and adaptation, pollution control, and forest protection. Between 1995 and 2005 he frequently lectured at Oxford University and Imperial College of London.
In 2007, Moura Costa organized the international conference Rio+15, to celebrate 15 years of the UN Conference on Environment and Development (the ‘Earth Summit
’). The conference had the participation of over 200 international participants, including introductions by Maurice Strong
(organiser of the Earth Summit) and former Brazilian president Fernando Henrique Cardoso
, and received wide media coverage.
Moura Costa is a member of the advisory boards of the International Institute on Sustainable Development, Oxford Climate Policy, and the ClimateBonds Initiative.
Ecosecurities
EcoSecurities is a business that sources and develops carbon credits and carbon offsets from greenhouse gas emission reduction projects throughout the world....
Group Plc., one of the leading projects developers for the international carbon markets, and has written widely about the policy and science of climate change mitigation, including contributions to the Intergovernmental Panel on Climate Change
Intergovernmental Panel on Climate Change
The Intergovernmental Panel on Climate Change is a scientific intergovernmental body which provides comprehensive assessments of current scientific, technical and socio-economic information worldwide about the risk of climate change caused by human activity, its potential environmental and...
(IPCC) reports that were recognised with the Nobel Peace Price in 2007.
Role in Pre-Kyoto carbon emission reduction initiatives
Moura Costa’s involvement with the carbon emission reduction sector started in 1991, with the development of two of the first carbon forestry projects worldwide, namely the Innoprise-Face Foundation Rainforest Rehabilitation Project and the Innoprise-New England Power Reduced Impact Logging Project, both in Sabah, Malaysia. Moura Costa served as Senior Project Officer for Innoprise between 1991 and 1995, involved with both these projects.While the concept of ‘joint implementation
Joint Implementation
Joint implementation is one of three flexibility mechanisms set forth in the Kyoto Protocol to help countries with binding greenhouse gas emissions targets meet their obligations. JI is set forth in Article 6 of the Kyoto Protocol...
’ of greenhouse gas (GHG) emission reduction projects (also called "carbon offset projects") was launched at the United Nations Conference on Environment and Development
Earth Summit
The United Nations Conference on Environment and Development , also known as the Rio Summit, Rio Conference, Earth Summit was a major United Nations conference held in Rio de Janeiro from 3 June to 14 June 1992.-Overview:...
(UNCED, “the Earth Summit”), the early carbon offset projects of the 1990s suffered from a lack of specialised services to support them. One service of particular importance is that of independent verification of carbon offsets, as offsets are dependent on proving a shift of behaviour in relation to a baseline (this shift is referred as "additionality", in the sector).
Moura Costa identified the absence of independent verification services as one of the limiting factors to the growth of the carbon market at that time, and in 1996 he developed the first carbon offset verification service worldwide, which was licensed to the Swiss certification company SGS (Société Générale de Surveillance). The first client for this certification service was the Costa Rican National GHG Mitigation Programme, developed by OCIC
MINAE
MINAE, the Ministry of Environment and Energy or in Spanish , is part of the government of Costa Rica.-Agencies:*SINAC - National System of Conservation Areas*DGGM - Geology and Mining General Directorate...
(Costa Rican Office on Joint Implementation). After the launch of the Kyoto Protocol
Kyoto Protocol
The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...
(see below), independent certification of carbon emission reductions became a mandatory requirement under the rules of the Clean Development Mechanism
Clean Development Mechanism
The Clean Development Mechanism is one of the "flexibility" mechanisms defined in the Kyoto Protocol . It is defined in Article 12 of the Protocol, and is intended to meet two objectives: to assist parties not included in Annex I in achieving sustainable development and in contributing to the...
(i.e., the carbon credits of this mechanism are called CERs, meaning Certified Emission Reduction
Certified Emission Reduction
Certified Emission Reductions are a type of emissions unit issued by the Clean Development Mechanism Executive Board for emission reductions achieved by CDM projects and verified by a DOE under the rules of the Kyoto Protocol...
s).
To pursue the work with SGS and the government of Costa Rica, Moura Costa created EcoSecurities
Ecosecurities
EcoSecurities is a business that sources and develops carbon credits and carbon offsets from greenhouse gas emission reduction projects throughout the world....
, a company specialised in the development of greenhouse gas mitigation projects.
Contribution to the CDM and carbon trading
EcoSecurities was founded in January 1997 by Moura Costa and environmental economist Marc Stuart to provide "environmental finance solutions". Twelve months later, in December 1997 the Kyoto ProtocolKyoto Protocol
The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...
was signed creating binding commitments for reductions in greenhouse gas emissions among industrialised countries. It also created the Flexibility Mechanisms
Flexible Mechanisms
Flexible mechanisms, also sometimes known as Flexibility Mechanisms or Kyoto Mechanisms), refers to Emissions Trading, the Clean Development Mechanism and Joint Implementation. These are mechanisms defined under the Kyoto Protocol intended to lower the overall costs of achieving its emissions targets...
, Joint Implementation
Joint Implementation
Joint implementation is one of three flexibility mechanisms set forth in the Kyoto Protocol to help countries with binding greenhouse gas emissions targets meet their obligations. JI is set forth in Article 6 of the Kyoto Protocol...
and the Clean Development Mechanism
Clean Development Mechanism
The Clean Development Mechanism is one of the "flexibility" mechanisms defined in the Kyoto Protocol . It is defined in Article 12 of the Protocol, and is intended to meet two objectives: to assist parties not included in Annex I in achieving sustainable development and in contributing to the...
(CDM), that enabled the creation and use of carbon credits from greenhouse gas emission reduction projects. Carbon trading gradually evolved from being a niche environmental activity to becoming a global market that in 2010 mobilised over € 120 billion, including trades under the European Union Emissions Trading Scheme and the UN flexibility mechanisms.
As carbon markets evolved, Moura Costa was particularly interested in making investors and analysts incorporate the impact of greenhouse gas emissions on company valuations. In 1999, he co-ordinated the development of the carbon trading component of Australian Plantation Timber, a forestry investment fund, the first time ‘carbon value’ was included in an investment prospectus. Gradually, investor awareness of climate and environmental issues increased, and as a result of that (and contributing to this trend) a series of companies in the carbon market sector floated on stock exchanges in 2004-2006.
The adoption of binding emission reduction commitments by the Kyoto Protocol created a positive environment for more carbon offset project development companies to be created worldwide. Benefitting from an early mover advantage, EcoSecurities rapidly expanded and established a significant market share. In December 2005, EcoSecurities listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
(AIM) raising capital for its expansion, one of the first companies in this sector to be listed. As President and COO, Moura Costa coordinated the expansion of the company, from 30 to 300 employees, establishing the firm’s offices in 28 countries worldwide. In 2007, the company raised a second round of capital from the stock markets, and attracted Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
as a strategic partner.
During the period he was involved with EcoSecurities, from 1997 to 2009, the company developed more than 450 CDM projects in over 40 countries and, between them, using over 20 different technologies. The company was a pioneer in many aspects of the sector, including the development of the first project registered by the CDM (the NovaGerar landfill project in Brazil), and the first project to receive CERs (a small-hydro project in Honduras). With a view to broadening its reach, he led the company to develop new divisions focused on specialised technologies related to greenhouse gas abatement. Among them, EcoMethane, a division specialised in the creation of projects for the collection and destruction of methane from landfill sites, and a division for the development of N2O abatement projects, focusing on nitric acid factories. Moura Costa was also the fund manager of the EcoSecurities-Standard Bank
Standard Bank
The Standard Bank of South Africa Limited is one of South Africa's largest financial services groups. It operates in 30 countries around the world, including 17 in Africa.-History:...
Carbon Facility, which invested in projects on behalf of the Government of Denmark and, subsequently, EcoSecurities also run similar funds on behalf of the governments of Austria and Japan.
In April 2009, Moura Costa resigned from EcoSecurities to conduct a take-over bid to acquire control of the company, together with Brazilian investment group BTG
BTG Pactual
BTG Pactual is a Brazilian investment bank that resulted from the takeover of UBS Pactual by BTG in 2009. BTG Pactual is the largest independent investment bank in Latin America. It has experience in emerging markets...
. This resulted in an international competition for the acquisition of the company and in October 2009 EcoSecurities was acquired by JP Morgan.
Contribution to environmental policy and science
Dr Moura Costa has a PhD from University of London and has published widely in the subjects of environmental finance, carbon trading, GHG mitigation science and forestry. In particular, many of his articles have focused on scientific aspects of the design of the Clean Development Mechanism, such as discussions on leakage, additionality, monitoring and verification, permanence, and carbon forestry. He was also a Lead Author to the IPCCIntergovernmental Panel on Climate Change
The Intergovernmental Panel on Climate Change is a scientific intergovernmental body which provides comprehensive assessments of current scientific, technical and socio-economic information worldwide about the risk of climate change caused by human activity, its potential environmental and...
Special Report on Land Use, Land Use Change and Forestry and other IPCC reports, recognised with the Nobel Peace Price in 2007. He has also written on forestry, low impact logging, and innovative financial mechanisms for the environment.
His work has been covered widely by the international media, including cover features in the Wall Street Journal, Director Magazine, Future Fuels, articles in Fortune Magazine, Sunday Times, Forbes, Estado de Sao Paulo, and TV and radio interviews with TV Globo, BBC and others. Moura Costa is regular speaker in conferences and universities, promoting innovative solutions for environmental challenges, including climate change mitigation and adaptation, pollution control, and forest protection. Between 1995 and 2005 he frequently lectured at Oxford University and Imperial College of London.
In 2007, Moura Costa organized the international conference Rio+15, to celebrate 15 years of the UN Conference on Environment and Development (the ‘Earth Summit
Earth Summit
The United Nations Conference on Environment and Development , also known as the Rio Summit, Rio Conference, Earth Summit was a major United Nations conference held in Rio de Janeiro from 3 June to 14 June 1992.-Overview:...
’). The conference had the participation of over 200 international participants, including introductions by Maurice Strong
Maurice Strong
Maurice F. Strong, PC, CC, OM, FRSC is a Canadian entrepreneur and a former under-secretary general of the United Nations. Strong's first name is pronounced "Mor'ris" with the accent on the first syllable....
(organiser of the Earth Summit) and former Brazilian president Fernando Henrique Cardoso
Fernando Henrique Cardoso
Fernando Henrique Cardoso – also known by his initials FHC – was the 34th President of the Federative Republic of Brazil for two terms from January 1, 1995 to December 31, 2002. He is an accomplished sociologist, professor and politician...
, and received wide media coverage.
Moura Costa is a member of the advisory boards of the International Institute on Sustainable Development, Oxford Climate Policy, and the ClimateBonds Initiative.