Eye on Carbon Credits. Where Profits & Ethics Unite. Why invest in carbon credits?.
Where Profits & Ethics Unite
The principal objective is to make capital returns from investment in renewable / clean energy verified emission reduction credits. To this end, together with our partner provider, we have made available to retail investors the opportunity of purchasing high quality, verified carbon 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 which are reducing poverty, fighting climate change and promoting corporate social responsibility. They provide opportunities for investors to pursue those three objectives simultaneously, making the purchase of carbon credits attractive to investors at all levels who are looking for sustainable investments that generate capital gain.
The market for carbon assets continues to be attractive. Our UK partner provider has the team, experience, distribution and infrastructure to enable investors to access the global carbon markets and to build a valuable portfolio of carbon assets.
Over the longer term the carbon market will benefit from greater price transparency, decreasing transaction costs and increasing liquidity, all of which will lead to increased efficiency in pricing and improvements in carbon reduction development. Whilst carbon prices are currently volatile, we believe that over the medium to long term carbon credits provide a number of attractive investment opportunities.
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 with a secure custodianship service for the carbon credits that you purchase through us from the UK provider. Your credits will be held for you under the FSA main account with the APX Carbon Credit Registry - www.vcsregistry.com.
Once your purchase has been completed, your credits will be transferred into your own sub account for which you will be provided access via the web. You will instantly be able to see your credits with your unique serial numbers held in 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.
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 any purchaser 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 your behalf. 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 buyers and are members of the Carbon Trade Exchange, the APX and Markit Registries, with ongoing relationships with companies globally who purchase carbon credits to offset their corporate carbon footprints. Together, our aim is to aggregate your credits with other clients’ holdings and offer these purchasers access to substantial blocks via the provider.
In addition, there is a unique Carbon Partner Program in place – a network of over 2,000 carbon credit ecommerce websites which the provider hosts, enabling individuals and businesses around the world to buy and sell carbon credits.
“Carbon Trading is one of the fastest growing specialities in Financial Services.”
“Carbon will be the world’s biggest commodity market & it could become the world’s biggest market overall”
“Carbon trading may dwarf that of crude oil within 5 years, worth 2 trillion”
“JPMorgan isn't alone. All the big global investment banks including Barclay‘s, Citigroup, Goldman Sachs and Merrill Lynch are hurrying into carbon finance”
“Carbon could become one of the fastest growing markets ever, with volumes comparable to credit derivatives inside of a decade“
“United Nations Carbon Credit prices may rise as much as 42% by 2012”
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 don’t 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.
The voluntary carbon markets are inherently future-facing. Reducing greenhouse gases (GHGs) is an act designed with tomorrow’s planet in mind. Projects that reduce GHG emissions can be years in the making, and some will even outlive their stakeholders. Carbon offset buyers commit millions of dollars every year to support the evolution of new technologies. Suppliers generate pre-compliance credits before regulations set the rules. Behind the scenes, the voluntary carbon market infrastructure sets the market trajectory with tools for transparency, accountability, and expansion.
Transactions in the voluntary carbon markets are not required by regulation, but are instead driven by companies and individuals that take responsibility for offsetting their own emissions as well as entities that purchase “pre-compliance” offsets. What the voluntary carbon markets lack in 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
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 Protocol’s 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 organization’s 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
The Business Case for Sustainability – Avivahttp://www.aviva.com/reports/cr10/climate-change-environment/controlling-impacts/carbon-offsetting.html/
Australia sets carbon price at £15 per tonne.....
The Australian government has unveiled plans to impose a tax on carbon emissions for the worst polluters.
Prime Minister Julia Gillard said carbon dioxide emissions would be taxed at A$23 ($25; £15) per tonne from 2012.
The country's biggest economic reform in a generation will cover some 500 companies.
In 2015, a market-based trading scheme will be introduced
With the team, experience, distribution and infrastructure in place with our partner provider, we believe this creates a unique opportunity to enable investors to access the global carbon markets and to build a valuable portfolio of carbon assets.
Over the longer term the carbon market will benefit from greater price transparency, decreasing transaction costs and increasing liquidity, all of which will lead to increased efficiency in pricing and improvements in carbon reduction development.
We believe over the medium to long term carbon credits provide a number of attractive investment opportunities
Web: www.validatedcarboncredits.comValidated Carbon Credits is a trading name for Baron Traders Ltd registered in Gibraltar no. 105368