european carbon fund ™
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EUROPEAN CARBON FUND ™. The first carbon fund structured and managed by major financial institutions. www.europeancarbonfund.com. Managed by: . Agenda. ECF presentation Recent Carbon market evolutions Our Strategy for Asia. ECF definition. - PowerPoint PPT PresentationTRANSCRIPT
EUROPEANCARBONFUND™
The first carbon fund structured and managed by major financial institutions
www.europeancarbonfund.com
Managed by:
Carbon Market Asia - www.europeancarbonfund.com - Page 2
Co-promoteurs: CDC & Fort is Banque
Agenda
• ECF presentation
• Recent Carbon market evolutions
• Our Strategy for Asia
Carbon Market Asia - www.europeancarbonfund.com - Page 3
Co-promoteurs: CDC & Fort is Banque
ECF definition
• European Carbon Fund (ECF)
is a financial fund, designed
and operated by major EU
financial institutions, dedicated
to purchase Carbon Credits.
Carbon Market Asia - www.europeancarbonfund.com - Page 4
Co-promoteurs: CDC & Fort is Banque
ECF shareholders: large financial institutions – 142.7M€
Carbon Market Asia - www.europeancarbonfund.com - Page 5
Co-promoteurs: CDC & Fort is Banque
ECF manager: IXIS Environnment & Infrastructures
• IXIS Corporate & Investment Bank is Groupe Caisse d’Epargne’s corporate and investment banking arm and a leading player on capital markets. French saving Banks are France 3rd bank.
• IXIS CIB is present worldwide through its Paris headquarters, branches in Frankfurt, London and Tokyo, and subsidiaries in New York and Hong Kong.
• S&P AA
Carbon Market Asia - www.europeancarbonfund.com - Page 6
Co-promoteurs: CDC & Fort is Banque
EU Carbon Market: VOLATILITY!
Carbon Market Asia - www.europeancarbonfund.com - Page 7
Co-promoteurs: CDC & Fort is Banque
2006 Transactions (6 months): Approx.10Mt CO2 purchased
250,000 ERUs
Biomass - Lituania
Jan 06
1,210,000 CERs
N2O - Brazil
Feb 06
1,210,000 CERs
N2O - Korea
Feb 06
3,600,000 CERs
Landfill - Argentina
Mar 06
540,000 CERs
Wind - China
May 06
2,500,000 CERs
Swine - Brazil
Jun 06
17,800,000 CERs
CMM - China
Nov 06
1,080,000 CERs
Straw - China
Oct 06
Carbon Market Asia - www.europeancarbonfund.com - Page 8
Co-promoteurs: CDC & Fort is Banque
ECF purchasing strategy
• Today, China is under-represented in our portfolio
• ECF will invest 80-150M€ in Carbon Assets in China in the next 2 years
• Volumes contracted: 100,000t/y to 5,000,000t/y
• Portfolio approach: diversification of technology and counterparty
• Strong sustainable development criteria expected
Carbon Market Asia - www.europeancarbonfund.com - Page 9
Co-promoteurs: CDC & Fort is Banque
From a carbon seller perspective:risks
• Risks of selling carbon
– Volatility of prices
– Contractual clauses (penalties, event of default…)
– Lack of experience, generally first deal
– Sometimes unreliable counterparties
Carbon Market Asia - www.europeancarbonfund.com - Page 10
Co-promoteurs: CDC & Fort is Banque
From a carbon seller perspective: rewards
• Carbon credits can enhance the profitability of environmental-friendly projects in Asia
• Need to find a reliable partner…
• … that can harness or mitigate:
– Regulatory risk
– Counterparty risk
– Delivery risk
– Market risk
Carbon Market Asia - www.europeancarbonfund.com - Page 11
Co-promoteurs: CDC & Fort is Banque
Conclusion
• ECF has closed 4 deal in China, and has a robust pipeline of projects to be concluded in the coming months
• ECF is a reliable partner for purchasing the carbon credits
• ECF has been created by leading EU financial institutions to absorb risks within a portfolio strategy
• ECF buys CER, whatever the market conditions
EUROPEANCARBONFUND™
The first carbon fund structured and managed by major financial institutions
www.europeancarbonfund.com
Managed by: