Sydney, Australia – Rothschild Australia and E3 International are set to become key players in the international carbon credit trading market, an emerging commodity market that analysts estimate could be worth up to US$150 billion by 2012.
In a move that will re-shape the fledgling emissions trading market, Rothschild Australia and E3 International today announced their intention to launch the Carbon Ring Consortium — an investment vehicle that will provide companies in the Asia Pacific Region with an innovative way of learning about and understanding their risks in the new carbon market.
The Carbon Ring Consortium is the first of its kind in the Asia-Pacific Region, and is the first in a series of private investment vehicles that Carbon Ring Pty Ltd will launch in coming years.
Richard Martin, the chief executive officer of Rothschild Australia said, “With recent developments in international climate change policy, the question is no longer if, but when the global carbon trading market will emerge. Rothschild Australia, through Carbon Ring, intends to be at the forefront of this market, providing private investment vehicles to companies seeking to offset their greenhouse gas emissions liabilities.”
The Carbon Ring Consortium allows companies with a future carbon liability to purchase a range of carbon credits and obtain a practical insight into the operation of this new market. Carbon credits will be bought from domestic and international projects that achieve a reduction in greenhouse gas emissions. These carbon credits will be distributed pro rata to Consortium investors.
“The Carbon Ring Consortium is an important first step for Rothschild and for our clients,” said Mr. Martin.
“The Consortium should appeal to companies that are faced with a greenhouse liability and are significant users or producers of energy, such as electricity generators, heavy industrials, oil companies, major manufacturers or airlines, amongst many others.
“It provides investors with an opportunity to learn about the market through an investment in a low risk, low cost investment vehicle, created specifically to acquire a diverse range of carbon credits. Participants will also share in significant knowledge and intellectual property,” Mr. Martin said.
During its life, the Carbon Ring Consortium intends to purchase a range of carbon credits, in a range of jurisdictions and from a range of sources. In the process, the Consortium will expose investors to many of the most pressing issues that corporations will have to address if they are to participate in the emerging carbon market. It will also give investors a practical insight into the buying and selling of carbon credits in the present market, without the need to invest in significant trading infrastructure or to assume undue risk.
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