Go generate emissions credits. It’s worth it.
On this episode of the Bracewell Environmental Law Monitor, host Daniel Pope and environment, lands and resources partner Whit Swift talk with Kyle Breeze, vice president of Gulf Coast Emissions at Anew, about Houston-Galveston-Brazoria area emissions credits.
The conversation dives into how the price and value of emissions credits have changed over the last decade, why the emissions credit market is at a “pinch point” right now and the financial importance of being a proactive – rather than reactive – market participant. Kyle also highlights how strategic thinking about nitrogen oxide (NOx) and volatile organic compounds (VOCs) will likely apply to future decarbonization strategies and urges firms to prioritize their emissions plans.
Featured Guests
Name: Kyle Breeze (a.k.a. Kyle Brzymialkiewicz)
About: Kyle is a vice president of Gulf Coast emissions at Anew. He focuses on supporting companies in Texas and Louisiana, primarily with their emission reduction credit needs and opportunities. Kyle also helps companies navigate the world of discrete emission reduction credits, mass emission cap and trade and highly reactive volatile organic compound emission cap and trade. Kyle assists companies wherever they need it and at any point in the emission reduction credit discussion/process, which includes conception, planning, generation, management, strategy, marketing, transacting, monetizing, usage and reporting.
Company: Anew
Connect: LinkedIn
Episode Highlights
[09:28] Kyle’s Journey to Becoming an Emissions Credit Broker: Kyle is a chemical engineer by training and spent a decade doing air consulting before he was introduced to emissions credits and the markets. Kyle says that, to be an effective company in this space, you have to “understand the game,” which requires a combination of understanding regulatory, technical, internal capabilities, how your company defines risk, what the market looks like and your capital project’s horizon.
[11:27] It’s Expensive to Build in Houston: Kyle distinguishes between the value and price of emissions credits and shares how both have changed over the last 10 years. Though it is expensive to build in Houston, it’s less expensive in nominal terms than it was 10 years ago.
[16:45] Why the Market Deserves Attention Right Now: The market is at a “pinch point.” Kyle explains the supply and demand dynamics for VOC credits, as well as the difficult agency approval process. “We’re down to the bottom of the barrel. There hasn’t been a signal to go generate more credits and demand is at least going to be constant. Even if it’s low, even if we only need a hundred tons next year, we only have 50,” Kyle says.
[23:25] Strategic Approach to Market Participation: Kyle emphasizes the value of becoming a strategic participant in the emissions market, sharing that strategic thinking on NOx and VOCs translates over to carbon well, since the carbon conversation will be similar over the next decade.
[28:56] Proactive Versus Reactive Market Participation: Whether you are a buyer or a seller, it is important to time when you are entering the market. Being reactive, rather than proactive, can lead to paying much higher prices.
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The opinions expressed in this podcast are those of the speakers and do not necessarily reflect the viewpoint of their institutions or clients.
