About CarbonDesk
The Company acts in a pure agency capacity on behalf of clients on both the buy-side and the sell-side dealing in all major emissions products both on-exchange and OTC. In addition, we also offer clients independent research on the carbon market.
Our clients include industrial companies with compliance obligations under the European Union’s Emissions Trading Scheme (EU ETS), voluntary purchasers, project developers and financial institutions.
CarbonDesk does not take principal positions and so reflects the best possible execution for our clients’ orders.
Our team of traders has experience in all emissions markets and is ready to offer execution on exchanges around the world or through OTC transactions.
CarbonDesk offers clients independent research on the carbon market, including daily market reports and in depth analysis of trading strategies.
We differentiate ourselves by offering clients:
- True independence as an agency broker
- A bespoke service from a firm specialising in carbon
- The ability to maintain their anonymity in the marketplace
- Broking services free of any of the potential conflicts of interest that can arise at firms where principal positions are being taken
- Independent specialist advice on market trends, risk management, financing and profit opportunities.
Services
We execute trading either on the spot market (physical) using our DEFRA emissions registry, or the futures market using the European Climate Exchange (ECX).
Our spectrum of expertise ensures that we deliver timely advice to our clients no matter their requirements.
Compliance
We develop bespoke strategies for companies within the EU-ETS depending on the level of risk and return they are seeking as well as their overall financial strategy. Taking advantage of derivatives, insurance products and mechanisms with the scheme we construct strategies that serve to fulfill one or all of the following objectives:
- Minimise compliance cost within agreed risk parameters
- Generate cash
- Protect against volatility
Primary Projects
Our origination team works with project owners to identify, develop and manage carbon projects from origination to carbon credit issuance.
We are interested in working with project owners developing projects under the Clean Development Mechanism (CDM) and Joint Implementation (JI) mechanisms of the Kyoto Protocol, as well as Verified Emission Reduction (VER) projects.
We are focused on helping clients demonstrate clear additionality, permanent emission reductions, certainty of offset delivery together with strong social and environmental benefits (with a view to achieving Gold Standard.)
Our services include
- Helping to identify and assess projects with the potential to generate substantial CO2 emission reductions and carbon credits. This may include assisting clients to identify carbon assets embedded in existing or potential assets and projects
- Assisting clients in developing project documentation and moving projects through the project cycle
- Advising clients on risk management techniques including insurance products
- Monetising carbon credits, working on behalf of project owners, to identify appropriate international buyers for carbon credits
- Assisting project owners in structuring and negotiating an Emissions Reduction Purchase Agreement (ERPA) with a view to meeting client objectives in terms of value, certainty, risk management and retention of upside potential.
We also work with project owners with issued credits to help them maximize the value from any credits that may be outside the scope of their ERPA commitments. ERPA purchasers on the other hand can meet their own objectives utilising our expertise in the full range of carbon financial instruments.
Glossary
Glossary summary
Glossary content
Research
We also provide independent research setting out key trading opportunities and a broad range of primers to help clients understand technical aspects of the carbon market and flexible mechanisms under the Kyoto Protocol. A selection of our research is available on this site by clicking on the relevant links.
Should you wish to find out more about our coverage and be included on the circulation list for our latest research, please do not hesitate to contact:
David Bates, Head of Research
Tel: 020 7965 4696
e-mail: (JavaScript must be enabled to view this email address)
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| Market Commentary | Tuesday, 30 June 2009 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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EUAPrices opened on a firmer note but soon got wind of weakness in the oil market and poor UK economic data, resulting in a slide to close at the low. Spot trading remained very active on the OTC market and Bluenext volumes hit 5.1m remain subdued as the VAT investigation proceeds. Prudential Bache have launched an index of CO2 credits and metals that are related to reducing emissions such as platinum. The heatwave we predicted in a piece of research titled Something Fishy about Carbon is now happening so we would expect prices to react positively to the increased power demand.
* NOM (Nil on Market)
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CERThe backwardation increased to 25 cents as speculators continue to load positions on expectations of a shortage in supply of 09 credits. This trade has been building since early may and we expect it to continue as the upside is considerably greater than the downside (cureently Repo plus 25 cents). The US is making increasingly encouraging signals that they hope to table the Waxman-Markey bill before the Senate by mid September. We feel this is too optimistic as they need 60% of the vote rather than the straight majority needed in Congress. There is concern that the UN has rejected 1 wind project and has placed 15 more under review, this raises the question of their CDM credibility.
* NOM (Nil on Market)
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Source - ECX/Bloomberg 30/6/2009 |
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Technical primers summary
CONTENT
Contact
CarbonDesk Limited
4 Broadgate
London
EC2M 2QY
+44 (0) 20 7965 4692
Team
Brett Stacey (CEO)
Brett’s extensive experience in futures and options trading extends across his entire career. He started the first options house in Johannesburg and was one of the founders of the South African futures exchange, of which he was deputy chairman. Since selling his business and leaving the South African Markets he has spent the last three years in the U.K.
David Bates (Head of Research & Origination)
David has over twenty five years experience of international financial markets, both as a broker and as an investment manager. He was a founder director of Asia Equity which became Paribas Asia Equity. David subsequently became more involved in environmental markets launching The Carbon Trading Fund, a derivative based hedge fund, in early 2005. David has given lectures on Carbon all over the world including Hong Kong, Dubai, and the LSE in London.
Daniel Edelman (Head of Dealing)
Dan started trading with Cazenove & Co. on the floor of the LSE, after which he was the first trader on their market making desk. After thirteen years he left to set up a new equity market making desk with Durlacher. Since then he has been involved in capital raising and IPOs.
Andrew Sellars
Graduate trainee from Imperial College London. Andrew specialised in the renewable energy sector, geology and the environment.
David Pearse
David has 25 years' experience in commodities, trading and investment banking. He is a senior advisor who has been a Board member of the World Bank Prototype Carbon Fund and consultant to foreign governments and authorities on commodities and emission trading activities. He has built an emerging commodities business in the trading of carbon, power, gas, coal, oil, freight and weather and set up the world’s first carbon trading desk at Deutsche Bank. As an expert in derivatives and structured products David also pioneered the securitisation of sequestrated carbon. David was instrumental in building markets for greenhouse emission trading schemes developed under the Kyoto Protocol.
Jason Ward
Jason has over 4 years' experience in international search and selection, much of which was focused in the carbon and renewable energy space. Jay is extremely well connected in the global emissions trading community and has had a remarkably successful career so far thanks to his insight and understanding of the markets in which he operates.
Harry Beamish
Harry has a degree in history from Newcastle University and a Master's degree in International Business from ESCP-EAP European School of Management. Before joining CarbonDesk Harry worked for P3 Ventures (formerly P3 Capital), an advisory and capital placement agent for the sustainable sector.