Wt Carbon Discussion Threads

[praipus] 26/2/2014 22:04

NEW THREAD

[praipus] 26/2/2014 21:32

Removed LCA from the header.

[praipus] 27/2/2013 10:24

Added LCA and TRE charts to header

[praipus] 06/9/2012 18:34

Buy TRE for a 50% discount on the CARB price:-)

[praipus] 18/6/2012 12:54

Had a chat to an environmental campaigner over the weekend who said that one of the reasons the CARB price is so low is that the Italian's have been gaming "cheating" the system in some way. He didn't say how but I wondered if that is effectively shorting in a big way.

If so: is there a reasonable probability of one almighty CARB spike or short squeeze at some point?

[praipus] 17/2/2012 13:56

Anyone who likes CARB's could also consider TRE and or LCA both on astonishing discounts to NAV but have had torrid past.

[praipus] 08/12/2011 11:48

Planet's still getting warmer howsoever caused, ozone holes getting bigger (or are they?)



Is there a floor price?

[praipus] 15/9/2011 11:30

FSA warning!

[praipus] 20/8/2009 18:50

Would you trade the future or the ETF?

[wormcatcher] 10/8/2009 16:57

I'll give this a bump to bring it up my list - nice recovery of late.

[hazelton] 08/2/2009 18:47

Its a shame that there is not a short carb (or perhaps there is).

[asparks] 23/5/2007 10:47

Alkane Energy Carbon Emissions Savings


RNS Number:0658X
Alkane Energy PLC
23 May 2007


For Immediate Release 23 May 2007



Alkane Energy plc


Verification Process Started for Alkane's Carbon Emissions Savings

Alkane Energy plc (AIM: ALK), a world leader in renewable electricity generation
technology, is pleased to announce that it has signed a contract with Dutch
emissions trading company Carbon-TF B.V. to verify its current and historic
emissions savings from the capture and use of coal mine methane from post mining
activities.

TUV Nord, a world leader in emissions measurement and accredited by the UNFCCC
(United Nations Framework Convention on Climate Change), has started an
investigation into the verification of Alkane's data on methane capture,
collected as a matter of 24/7 routine at its plants. The objective is to verify
all or part of Alkane's last 7 years' emissions savings, which total several
million tones of carbon dioxide equivalent. Once verified, Carbon-TF would trade
these Verified Emissions Reductions (VERs) on Alkane's behalf for an agreed
commission.

VERs are actual emissions reductions generated by the capture of damaging
greenhouse gases, especially methane, and they are purchased by international
companies that emit large quantities of greenhouse gases in order to reduce
their carbon footprints.

Commenting on the development, Cameron Davies, Chief Executive of Alkane, said:

"The recognition by Carbon-TF of Alkane's emissions savings - and its agreement
to trade our VERs - provides the opportunity for future income for the business,
as Alkane grows its numbers of plants in operation."

Editors Note

Methane is a potent greenhouse gas with a net global warming potential 18.25
times that of carbon dioxide. The practical effect of this in terms of
emissions trading is that capturing 1 tonne of methane produces 18.25 emissions
credits in comparison with 1 credit per tonne of carbon dioxide.

Enquiries:

Alkane Energy plc Buchanan Communications
Dr Cameron Davies, Chief Executive Ben Willey, Associate Director
Nick Melson, Account Manager
Tel: [phone] Tel: [phone]

[praipus] 24/1/2007 16:56

energyi did you know Trading Emissions PLC (TRE) have a holding in carbon capital markets? As well as Econergy (ECG) and 111,586,767 tonnes of C02 CER's?

[asparks] 23/2/2006 14:24

23rd Feb 06 "Shares" Magazine - Are runing a feature "The 100 Greatest Growth Stocks". Trading Emissions is listed here. BUY.

TRADING EMISSIONS (TRE:AIM)
Sector: General Financial
Price: 171p
Market cap: £230 million PE: n/a
1-mth rel. strength: 12.8%
6-mth rel. strength: 14.4%
2006 EPS growth: n/a
EU legislation and other moves to reduce
greenhouse gasses will provide ongoing price
support for Trading Emissions. It acquires/invests
in clean energy and emission-reducing assets and
its first deal is imminent. The company also trades
energy derivatives and carbon permits. BUY

[energyi] 04/7/2005 23:13

Lead Stories • Issue number 17 •
Fretz launches emissions trading company
Posted 3/06/2005

Carbon market veteran Lionel Fretz has set up a new emissions trading company - Carbon Capital Markets - to provide products and services to companies covered by the EU Emissions Trading Scheme (EU ETS).

The London-based operation - which will be 10 strong when fully staffed - will target non-power sector companies, typically those looking to trade between 10,000 and 100,000 tonnes of allowances. It will also aggregate smaller deals, Fretz says, as well source certified emission reductions, generated by Clean Development Mechanism (CDM) projects, via one of its major shareholders.

"There's a role for people who make it easy to trade, and as a consequence, we'll bring liquidity to the market," Fretz told Carbon Finance. The company, which will focus on the UK, Spain, France, Germany and subsequently Italy, also plans to offer structured products, such as longer-term allowance price hedges, and a repo service, allowing companies that don't want to sell allowances to use them to raise short-term finance.

Fretz - who spent a number of years as a director of carbon finance consultancy EcoSecurities, and was a co-founder of boutique merchant bank Climate Change Capital - has raised £11 million ($20.5 million) to fund the company. His largest shareholder is Trading Emissions, the newly-listed
carbon fund (see Carbon Finance, April 2005, Blue-chip investors back largest carbon fund), but the second biggest backer is HLC, a Portuguese industrial group.

HLC, which has waste and energy operations in the UK, Portugal and Brazil, is developing a number of CDM projects, the credits from which Carbon Capital Markets will distribute, and Fretz's company will also originate projects for Trading Emissions. The new company's head of trading is Reuben Maltby, a metals and energy trader who has worked at Enron and US energy company Williams. John O'Brien, a well-known carbon market consultant, joins as head of origination.

Carbon Finance Online

[energyi] 04/7/2005 23:07

Key issues for companies needing to trade in the EU Emissions Trading Scheme

If your company is affected by the EU Emissions Trading Scheme (EU ETS) you have been allocated EU Emission Allowances (EUA's) for the first phase of the scheme (2005-2007).

The EUA's you receive for a year must match the amount of quantified emissions that you emit in that year. If you do not have enough allowances then you can either buy the shortfall from the market, or borrow from next year's allowances that you may have allocated. It is not however possible to borrow across phases one and two. Be wary of borrowing too many as you may be caught by rising prices.

If you have too many allowances you can either sell your allowances in the market or bank them for use in another year. It is not possible to bank your allowances across from 2007 / 2008. If you have not sold them by the end of the first phase any allowances you hold will be worthless.

If you fail to surrender a number of allowances equal to the amount of CO2 emitted you will face fines of €40 per tonne in the first phase. This fine will rise to €100 per tonne in the second phase (2008-2012)

Where and what is the "market" for allowances?

The "market" for allowances is actually two prices, the lowest price at which a seller is prepared to sell and the highest price a buyer is prepared to pay for a given amount of allowances, at any point in time.

The market buy price is known as the "bid" and the market sell price is known as the "offer" the difference between the "bid" and the "offer" is known as the "spread".

Different delivery times will attract different spreads and prices. Someone wanting to buy or sell for delivery in 2010 will find a very wide spread, whereas someone wanting to buy or sell for delivery in 2006 will find a narrower spread. Where the market consists of relatively few buyers and sellers it is described as being "illiquid" and where there are many buyers and sellers in the market it is described as being "liquid."

Different volumes will also attract different "spreads," very small or very large volumes will have the widest "spread" and standard volumes will have the narrowest "spread." This is because the liquidity of the market for non standard volumes is lower because there are less buyers and sellers for non standard volumes.

As there are very large numbers of potential buyers and sellers in the market, across 25 countries and languages, finding the best market price for any volume or delivery time can be difficult.

Carbon Capital Markets can offer you ways of managing this risk. Read more about our products and services to see how.


When and at what price should we transact?

The market place for allowances is like any other market and will rise and fall as supply and demand varies. As with any market there are consequential risks associated with the market price that should be managed.

You need to decide when and for how much volume you should transact for. Decisions such as, "Should we transact now, or later?", "Should we transact for all our requirements now, or later?" need to be made.

It is impossible to predict what the market price of allowances will be, because no one can predict the future, but there are ways to eliminate the risk of buying at the top of the market and / or selling at the bottom.

Carbon Capital Markets can offer you simplified ways of managing this price risk.Read more about our products and services to see how.



How can I buy or sell allowances at the "Market"

Deal directly with Carbon Capital Markets
Join an exchange
Use a broker
Dealing directly with Carbon Capital Markets

You can transact directly with a third party, such as Carbon Capital Markets. All you need to do is telephone us and we will buy from or sell to you at the market price.
By directly dealing with us, you will not pay any commission.

Join an exchange

There are several exchanges that have said they will act as a market place for allowances, for example the European Climate Exchange, European Energy Exchange.

Advantages
Liquidity: often other people are looking to buy and sell on the exchange so it may be more liquid than other market routes.
Disadvantages
Charges: you will be charged for both membership and for transacting through the exchange.
Collateral accounts: in order to deal with the exchange, you will have to maintain a collateral account directly with them. Alternatively, you can open an account with a clearing member.
You may not be able to deal in the volume that you want or with flexible delivery terms.
If you choose to join an exchange then do your research as each will have a different fee structure and collateral requirements. Also check whether by joining an exchange in a foreign country you change your tax status.

Use a broker

A broker will ring round the market for you and find a third party for you to transact with, they will agree the price and the main contract terms with each party. For this service a broker will charge a fee.

Advantages
Market knowledge: brokers are in contact with different third parties so should be able to tell you the position of the markets.
Disadvantages
Direct charges: brokers will charge you commission.
Indirect charges: brokers will often charge the third party commission. The third party may ask the broker to pass their costs to you without your knowledge.
Contract requirements: the transaction you agree with a broker will often be subject to contract and credit. You will need to negotiate a contract with every third party your broker introduces.

If you choose to use a broker then do your research as each will have different commission structures. Also remember to add the brokerage charges to the price they give you so that you can compare it with other market prices.

@:

[energyi] 04/7/2005 22:56

CARBON CAPITAL MARKETS...

A proven, well capitalised company

Carbon Capital Markets has formally launched having secured €16 million of equity investment. We are the only associate company of Trading Emissions PLC, a €200 million fund investing in emissions assets. Our other major shareholder is Grupo HLC (HLC), a diversified Portuguese industrial company. HLC expects, through its overseas operations, to have a natural long position in Certified Emission Reductions (CERs) and has pledged to use Carbon Capital Markets as the vehicle for their management and distribution.


Intelligent and resourceful professionals

Carbon Capital Markets has brought together a number of individuals and entities with highly successful track records in emissions markets, commodity trading and carbon commerce. They bring to Carbon Capital Markets strong networks in its target markets, existing products and clients and proven experience in origination, project development, and emissions trading.


Responding innovatively to client needs with solutions that add value

As a leading European provider of emissions compliance solutions designed especially for small to medium-sized companies participating in the EU Emissions Trading Scheme (EU ETS), Carbon Capital Markets will seek the best trading option for each client. Our experience of the energy and base metal commodity markets means that Carbon Capital Markets is uniquely placed to understand client needs and can offer price risk management solutions to companies concerned about adverse price movements.

For CDM and JI project developers Carbon Capital Markets' extensive market contacts and coverage means we can offer developers best market prices for their carbon assets with flexible contracting options. Our experience of waste to energy, biomass, landfill gasification and other projects, means Carbon Capital Markets understands the needs of project owners and can offer tailored products and services to owners of CERs.

International spirit with a global outlook

We are headquartered in London, speak most European languages and will establish offices in various other European countries throughout 2005.

@:

[energyi] 04/7/2005 22:50

TRE:
Carbon emission trading fund heads for listing
By Grant Ringshaw (Filed: 17/04/2005)


Equity Partnership Investment Company (Epic), the fund management group, is to float a new £135m stock market vehicle set up specifically to invest in carbon emissions allowances.

The investment vehicle, Trading Emissions plc, the largest fund of its kind, will this week be floated on the Alternative Investment Market.

The flotation comes four months after the launch of the European Union's Emissions Trading Scheme, designed to help member states reduce emissions of carbon dioxide.

Under the scheme, governments set limits for companies on the amount of carbon dioxide they can emit. If companies emit more than the allowance, they must buy emission rights or face heavy fines. Companies that produce less than their allowance can trade their rights.

Trading Emissions, which will also trade in sulphur emission rights, will be managed by Simon Shaw. An advisory board will be headed by Richard Sandor, the founder of the Chicago Climate Exchange, the first broadly based emissions trading scheme in the US, which was set up in 2001.

[energyi] 03/7/2005 12:38

Here's another new one: Trading Emissions
Anyone know it?
Trading Emis (TRE)
Chg % Curr Bid Offer High Low Open Volume
0.00 0.00 104.00 102.00 106.00 104.00 104.00 104.00 -
Market Cap. 140 m
Shares In Issue 135 m
Prev Close. 104.00 p

New one to the market - not much information around but looks interesting.
Raised £135m through flotation on AIM today.

Trading Emissions PLC was incorporated in March 2005 for the purpose of
investing in environmental and emissions assets together with certain classes of
energy instruments and other associated financial products. The Company's main
investment objective is to make capital profits from purchasing emissions assets
at appropriate prices.

Neil Eckert, Chairman of Trading Emissions PLC, said: "We have been delighted
by the level of support received from institutional investors that has enabled
us to create the world's largest fund for investment in emissions assets."

...Thread:

[geologic] 01/6/2005 08:58

High prices attract funds to carbon trade scheme



Financial Times, 25 May 2005 - Hedge funds, attracted by rising carbon prices, have started to invest in the fledgling market in greenhouse gas emissions.

Carbon prices have been rising sharply since the European emissions trading scheme was launched at the start of this year, reaching a record closing price of Euros 19 a tonne yesterday.

The emissions trading scheme limits the amount of carbon dioxide that can be emitted by industries such as power generation, and is intended to reduce greenhouse gas emissions, which cause climate change, by gradually reducing the amount of CO industries may produce. Companies that use less than their allowance can sell their excess permits.

James Cameron, founder of the boutique investment bank Climate Change Capital, said his company had received commitments from several hedge funds. He said the amount was greater than Dollars 100m (Pounds 54.7m) and could rise to Dollars 500m (Pounds 273.4m). "It's a new market, but attached to markets (in energy and commodities) that funds understand," he said.

Laurent Segalen, director of the European Carbon Fund at Ixis, said several hedge funds had expressed an interest in the fund. "This is still at an early stage for many of them but in six months' time I expect to see them in the market in larger numbers," he said.

Yesterday, UK companies were finally granted their emissions allocations after the government resolved its dispute with the European Commission over the trading scheme by agreeing a lower national limit on carbon dioxide output. Later this week companies' "carbon accounts" will be set up by the government.

The government is still locked in a legal challenge with the Commission after it tried last year to raise the agreed limit on the UK's emissions. Brussels argued that such a revision was impossible, a decision the government is contesting in the European Union's Court of First Instance.

In the UK, the cuts in CO emissions have fallen mainly on electricity generators, who are judged to be less at risk of international competition than industries such as steel and cement. Allowances are calculated on historical emissions, so companies that emit less in future will benefit by selling excess allowances; for instance, North Sea oil producers may have more allowances than they need as they produce less oil.

Margaret Beckett, secretary of state for the environment, said: "(The scheme) will become one of the main ways to cut carbon dioxide emissions, while maintaining economic growth. It gives industry a clear incentive to reduce carbon emissions, whilst enabling it to do so at least cost."

She added that the opening of the UK's carbon registry would boost the City of London, which has become an international centre for the carbon trading business.

Anthony Hobley, senior associate at the law firm Baker and McKenzie, said: "As a result of early commitment to the area by the UK government what has developed in London is one of the biggest concentrations of expertise (on) greenhouse gas emissions trading. Many of the contracts are based on English law, and already the City is working on some sophisticated financial products around carbon."

The government has set up aweb-based Emissions Trading Registry to record allowances held in companies' carbon accounts. The registry allows allowances to be transferred to other accounts both within the UK and in other countries.

Companies will be able to begin trading the allowances once their registry accounts are opened this week. The scheme is set to help reduce carbon dioxide emissions in the UK by about 65m tonnes - or 8per cent - over the next three years.

The UK has also scored a hit with its technology to set up emissions trading. The registry software, developed by the Department for Environment, Food and Rural Affairs, has so far been licensed to 12 other states.

Later today, Thom Yorke of the band Radiohead will join with the environmental group Friends of the Earth to call on people to hold the government responsible for acting on climate change.