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The main goal of Eurocarbon LTD is to assist companies
(Kyoto compliant or not) to benefit from the emerging low carbon
economy through the development and implementation of practical
and cost-effective carbon risk management solutions, transforming
carbon risks and liabilities into carbon assets.
We operate in both the voluntary market and the regulatory
market.
VOLUNTARY MARKET
Motivated by regulations, environmental concerns, or the competitive
advantage of marketing their products and services as “carbon
neutral ”, businesses such as retailers, manufacturers, transporters,
music and conference organizers, financial and legal institutions
are taking action by sponsoring our emission reduction projects
to offset carbon emissions from their own operations and those of
their clients.
Our voluntary projects typically include small-scale
renewable energy projects such as a fossil fuel to biomass fuel
switch, energy efficiency improvement projects and forestry sequestration
projects. We establish a baseline (what would have happened in the
absence of the project) and determine the avoided emissions due
to the offset project. These reductions are subject to strict third
party verification. VERs Verified carbon credits can then be generated,
and under very strict criteria, be transferred on the regulated
market.
REGULATORY
MARKET
Energy industry*, oil refineries, cement, glass, paper industry
and other large emitters are starting to realise that regulations
of greenhouse gas emissions are not just an environmental issue,
but also a financial and risk management issue. Since January 2005,
these companies need to carefully manage portfolios of emissions
allowances, valued at millions of Euros, which can significantly
impact on profitability and shareholder value.
Eurocarbon LTD help them to reach their emission reduction target
(capped emission allowances) by taking advantage of three market-based
mechanisms (Emissions Trading schemes, Joint Implementation and
Clean Development Mechanisms) aimed at achieving cost effective
emission reductions.
In practice, we help companies facing a cap under
the EU ETS to invest in CDM or JI projects or purchase emission
credits (Certified Emissions Reductions – CERs) in the market
and convert these into EU allowances (EUAs, the EU commodity), at
parity.
We guide clients through the complex process of Joint
Implementation and the Clean Development Mechanism. Projects qualifying
for CDM and JI are
- Industrial and municipal energy efficiency measures
- Power station fuel switches and new cogeneration (CHP) units
- Renewable energy sources (wind, biomass, biogas, hydropower, solar,
or geothermal)
- Energy efficiency measures.
We monitor and assess three key elements to forecast
price and market developments, these are: policy and regulatory
issues, market fundamentals, and technical indicators such as project-based
mechanisms. Insight into these prices guides our trading strategy,
risk strategy and ultimately help us make investment decisions.
In general, CO2 production depends on a number of
factors, such as weather data (temperature, rainfall, and wind speed),
fuel prices, carbon prices, political decisions and economic growth.
*Because renewable energy installations are carbon
neutral and do not cause GHG emissions, they are by definition not
part of the EU ETS – so wind farms, hydroelectric installations,
landfill gas facilities, and solar panels do not have to obtain
permits or allowances under the Scheme. The exception is biomass
plants with a thermal capacity greater than 20 MW. As such, they
constitute combustion installations. Biomass plants are included
in the scheme but emissions from biomass are considered to be zero.
For a free consultancy meeting , please contact
us at info@eurocarbonltd.com
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Eurocarbon LTD
Business Practice |