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  • 8/6/2019 Eye on Carbon Credits

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    Where Profits & Ethics Unite

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    The principal objective is to make capital returns from investment inrenewable / clean energy verified emission reduction credits. To thisend, together with our partner provider, we have made available toretail investors the opportunity of purchasing high quality, verifiedcarbon credits, which give investors direct exposure both to global

    climate change policy and the price of carbon credits.

    Investments in carbon credits resonate with three global themes whichare reducing poverty, fighting climate change and promoting corporatesocial responsibility. They provide opportunities for investors to pursue

    those three objectives simultaneously, making the purchase of carboncredits attractive to investors at all levels who are looking forsustainable investments that generate capital gain.

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    The market for carbon assets continues to be attractive. Our UKpartner provider has the team, experience, distribution andinfrastructure to enable investors to access the global carbonmarkets and to build a valuable portfolio of carbon assets.

    Over the longer term the carbon market will benefit from greaterprice transparency, decreasing transaction costs and increasingliquidity, all of which will lead to increased efficiency in pricingand improvements in carbon reduction development. Whilst

    carbon prices are currently volatile, we believe that over themedium to long term carbon credits provide a number of

    attractive investment opportunities.

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    It is important that all clients carbon assets are held in a secure environment.Therefore, an international FSA regulated firm is in place to provide you witha secure custodianship service for the carbon credits that you purchasethrough us from the UK provider. Your credits will be held for you under theFSA main account with the APX Carbon Credit Registry - www.vcsregistry.com.

    Once your purchase has been completed, your credits will be transferred intoyour own sub account for which you will be provided access via the web. Youwill instantly be able to see your credits with your unique serial numbers heldin an account in your name on the APX Registry.

    You are completely in control of your credits and can issue an instruction to

    move them to another account if you decide to sell or retire your credits. No-one else can do anything with your credits without your permission.

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    The carbon credits that you purchase will be in your name on the APX registry.You are completely in control of these credits, and can transfer them to anypurchaser as you wish. Our partner can manage this for you if you would like.

    You can also ask them to act as your Agent to sell your carbon credits on yourbehalf. There is a one-off fee of 99 + VAT to list your credits for sale and 5%

    commission on the value of all carbon credits sold on your behalf for this service.They have a number of relationships with carbon credit brokers and bulk buyersand are members of the Carbon Trade Exchange, the APX and Markit Registries,with ongoing relationships with companies globally who purchase carbon creditsto offset their corporate carbon footprints. Together, our aim is to aggregate yourcredits with other clients holdings and offer these purchasers access tosubstantial blocks via the provider.

    In addition, there is a unique Carbon Partner Program in place a network ofover 2,000 carbon credit ecommerce websites which the provider hosts, enablingindividuals and businesses around the world to buy and sell carbon credits.

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    Carbon will be theworlds biggest

    commodity market, andit could become the

    worlds biggest marketover all

    Barclays Capital

    The global carbon market isforecast to grow to $1 trillionby 2013

    (source: New Carbon Finance)

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    New York Times:

    Carbon Trading is one of the fastest growing specialities in Financial Services.

    Louis Redshaw, Barclays Capital:

    Carbon will be the worlds biggest commodity market & it could become the worlds biggest marketoverall

    CFCT Commissioner:Carbon trading may dwarf that of crude oil within 5 years, worth 2 trillion

    Fortune:

    JPMorgan isn't alone. All the big global investment banks including Barclays, Citigroup, GoldmanSachs and Merrill Lynch are hurrying into carbon finance

    Chris Leeds, Head of Emissions Trading, Merrill Lynch, London

    Carbon could become one of the fastest growing markets ever, with volumes comparable to creditderivatives inside of a decade

    Barclays PLC

    United Nations Carbon Credit prices may rise as much as 42% by 2012

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    We provide you with access to purchase carbon credits whichhave the Verified Carbon Standard accreditation. Thisensures that carbon credits bought by businesses andconsumers can be trusted and have real environmentalbenefits.

    The Verified Carbon Standard is among the most widely used

    GHG accounting programs by projects quantifying emissionreductions and issuing GHG credits in the voluntary markets.More than 600 projects have used the VCS Program to dateto reduce or remove more than 56 million metric tonnes ofCO2-equivalent from the atmosphere.

    VCS has been used by projects on six continents to ensurethat every GHG credit they generate is verified, permanent,

    unique and traceable. This provides important qualityassurance for those working to curb GHG emissions on theground even as top-down climate regulations take shape.

    Read more about How VCS Works

    http://www.v-c-s.org/how-it-workshttp://www.v-c-s.org/how-it-works
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    Carbon emissions are a lead cause of climate change and global pollution. You may have heard alot in the media these days about carbon emissions trading, carbon taxes, and carbon credits.

    Lobby groups and corporations spend millions trying to sway consumers either way, so lets break it

    down......

    A cap-and-trade system is already underway in the European Union - where a cap has been set on

    how many emissions can be produced. Allowances are given to different companies via permits,

    though they can sell them if they dont reach their pollution quota.

    Carbon credits are bought voluntarily by companies and individuals to offset

    the environmental cost of their actions which are typically measured by a verified third party and

    go towards funding projects in alternative energy, developing renewable resources, and other

    areas. Climate Action sells these kinds of credits to individuals, businesses, and organizations.

    Climate change poses a threat to the planet in our lifetime. Consider the impact of drought and

    flood on global food prices (especially in developing countries), the quality of air in cities like

    Beijing and Tokyo, or melting ice in the Arctic. Investing in carbon credits wont magically stop

    climate change, but it will direct financial resources towards projects that are making

    incremental changes for the better.

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    The voluntary carbon markets are inherently future-facing. Reducing greenhouse gases (GHGs) isan act designed with tomorrows planet in mind. Projects that reduce GHG emissions can beyears in the making, and some will even outlive their stakeholders. Carbon offset buyers commitmillions of dollars every year to support the evolution of new technologies. Suppliers generatepre-compliance credits before regulations set the rules. Behind the scenes, the voluntary carbonmarket infrastructure sets the market trajectory with tools for transparency, accountability, andexpansion.

    Transactions in the voluntary carbon markets are not required by regulation, but are insteaddriven by companies and individuals that take responsibility for offsetting their own emissions aswell as entities that purchase pre-compliance offsets. What the voluntary carbon markets lackin size, they make up for in flexibility spinning off innovations in project finance, monitoring,and methodologies that also inform regulatory market mechanisms.

    Carbon credits can be voluntarily purchased in one of two ways through a formal exchange or

    on the decentralized over-the-counter (OTC) market where buyers and sellers engage directly,through a broker or retail storefront.

    Extract from State of the Voluntary Carbon Markets 2011 report, EcoSystems Marketplace

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    Because the voluntary carbon markets are not part of any mandatory cap-and-trade system,almost all carbon credits purchased voluntarily originate from emissions reduction projects.

    These credits, sourced specifically for the OTC market, are generically referred to as Verified (or

    Voluntary) Emission Reductions (VERs) or simply as carbon offsets.

    OTC buyers may also voluntarily purchase and (in most cases) retire allowances from compliance

    markets like the Kyoto Protocols Clean Development Mechanism (CDM) or the US Regional

    Greenhouse Gas Initiative (RGGI).The OTC market is driven by both purely voluntary and pre-compliance buyers. Purely

    voluntary buyers purchase credits to offset their individual or organizations emissions and are

    driven by ethical or corporate social responsibility (CSR) motivations. Hence, the demand curve

    for these purely voluntary VERs has similarities with other citizen consumer ethical purchases

    such as Fair Trade or organic products.

    Pre-compliance buyers purchase VERs for one of two purposes: to purchase credits that they

    might be able to use for future compliance at a comparatively low price or to sell them at a

    higher price to entities regulated under a future mandatory cap-and-trade scheme

    Extract from State of the Voluntary Carbon Markets 2011 report, EcoSystems Marketplace

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    http://www.aviva.com/reports/cr10/climate-change-environment/controlling-impacts/carbon-offsetting.html/
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    Australia sets carbon price at 15 per tonne.....

    The Australian government has unveiledplans to impose a tax on carbonemissions for the worst polluters.Prime Minister Julia Gillard said carbondioxide emissions would be taxed atA$23 ($25; 15) per tonne from 2012.The country's biggest economic reform ina generation will cover some 500

    companies.

    In 2015, a market-based trading schemewill be introduced

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    As a developing country, China does not shoulder legally binding responsibilities toreduce carbon emissions, according to the basic principle set by the United NationsFramework Convention on Climate Change.

    Putting a price on carbon is a crucial step for the country to employ the market toreduce its rapidly growing carbon emissions and genuinely shift to a low-carboneconomy whilst remaining competitive in the global marketplace.

    The country's first voluntary carbon trade was sealed in August 2010, with a Shanghai-based auto insurance company buying more than 8,000 tons of carbon creditsgenerated through a green commuting campaign during the Beijing Olympics.

    The trade was carried out through the China Beijing Environment Exchange

    http://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.html

    http://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.htmlhttp://www.bloomberg.com/news/2010-12-06/china-s-cap-and-trade-to-come-within-five-years-professor-stern-predicts.html
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    A business may choose to go carbon

    neutral for the following benefits:

    Reducing impact on global warming

    Reputational or corporate positioning

    Product positioning

    Differentiation from marketcompetitors (or keeping up with

    market leaders)

    Attracting and retaining staff

    Saving money through reducing

    resource use and subsequent

    emissions reduction

    Forming a greater understanding of

    the carbon risk associated with

    business operations and/or product

    manufacture

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    https://www.cdproject.net/en-US/Results/pages/leadership-index.aspx
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    With the team, experience, distribution and infrastructurein place with our partner provider, we believe this creates aunique opportunity to enable investors to access the globalcarbon markets and to build a valuable portfolio of carbonassets.

    Over the longer term the carbon market will benefit fromgreater price transparency, decreasing transaction costs andincreasing liquidity, all of which will lead to increasedefficiency in pricing and improvements in carbon reduction

    development.We believe over the medium to long term carbon creditsprovide a number of attractive investment opportunities

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    1. All investments are speculative and can fluctuate in value. It should not be assumed that the value ofinvestments will always rise. Past performance is not a reliable indicator of future results. You may get back less

    than the amount originally invested or even lose the full amount.

    2. You should carefully consider in the light of your financial resources whether investing in Carbon Credits is

    suitable for you.

    3. Changes in currency exchange rates may adversely affect the value of any overseas investments or investments

    denominated in a foreign currency.

    4. There may be a big difference between the buying price and the selling price of Carbon Credits. If you have to

    sell them immediately, you may get back much less than you paid for them. You may have difficulty in sellingCarbon Credits at the price you wish to achieve and, in some circumstances; it may be difficult to sell them at any

    price. It can be difficult to assess what would be a proper market price for these investments. You should not

    invest in Carbon Credits unless you have thought carefully about whether you can afford to do so and have taken

    appropriate independent advice if you feel the need.

    5. Representations made by our sale consultants, agents or sales literature either orally, in paper or electronic

    form do not form part of these Terms. We give no warranty as to the future value of Carbon Credits.

    6. Forwards, options and other derivative contracts in relation to Carbon Credits are regulated investments in the

    United Kingdom. However, Carbon Credits sold by Baron Traders Ltd, aka Validated Carbon Credits are notderivatives and, as such, are not regulated investments. Accordingly, Baron Traders Ltd is not required to be

    regulated by the Financial Services Commission (FSC) or the Financial Services Authority (FSA) or any other

    regulator in the United Kingdom or Gibraltar. This means, among other things, that a person buying Carbon

    Credits from Baron Traders Ltd will not benefit from any protections afforded by the FSC or FSA and would not

    have access to the Financial Services Ombudsman or the Financial Services Compensation Scheme.

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    http://www.validatedcarboncredits.com/http://www.validatedcarboncredits.com/