Table of Contents

CHAPTER 1 – A growing carbon market

CHAPTER 2 – Carbon trading: prices and products

CHAPTER 3 – Carbon opportunities: strategies and returns

CHAPTER 4 – Risk management

CHAPTER 5 - Conclusions

CHAPTER 1 – A growing carbon market

Introduction
A review of the EU Emissions Trading Scheme

  • Expected policy outcome (Peter Zapfel, the European Commission)
  • Industry and market impact (Mark Lewis, Deutsche Bank)

Expected outcomes: prospective cap and trade schemes

  • A Federal US cap and trade scheme (David Hunter, IETA)
  • US states: RGGI, California and the WCI (Kenneth Markowitz, Akin Gump)
  • Australia (Martijn Wilder, Baker & McKenzie) and New Zealand (Murray Ward, The Global Climate Change Consultancy)
  • A Japan pilot (Takashi Hongo, Japanese Bank for International Cooperation)
  • Canada plans (Gray Taylor, Bennett Jones)

Expected outcomes: project-based schemes

  • Carbon market impact of an expected post-2012 climate treaty (Kate Hampton, Climate Change Capital)
  • Growing regulation of VERs (Grattan MacGiffin, MF Global)

CHAPTER 2 – Carbon trading: prices and products

Emissions permits – price discovery

  • European Union Allowances, EUAs (Per Lekander, UBS)
  • Kyoto offsets: CERs, ERUs (Emmanuel Fages, SocGen)
  • Voluntary Emissions Reductions (VERs) (Milos Sjardin, New Carbon Finance)

Trading approaches

  • Linkages between carbon, gas and coal (Kris Voorspools, Electrabel)
  • EU ETS trading strategies, impacts on EUA prices (Arran Kitson, BP)
  • CDM trading strategies (Lionel Fretz, Carbon Capital Markets)
  • Managing trading risk: growing choice in carbon options (Eva Karra, Lehman Brothers)

CHAPTER 3 – Carbon opportunities: strategies and returns

Investment opportunities

  • Carbon commodities: OTC and exchange-listed trackers (Trevor Sikorski, Barclays Capital); returns on a mixed carbon-equities portfolio (Byron Baldwin, Deutsche Boerse)
  • Carbon stocks: listed developers, carbon exchanges (Andrew Shepherd-Barron, KBC Peel Hunt)

Alternative strategies

  • Private equity investments (Assaad Razzouk, Sindicatum Capital)
  • Securitisation approaches (Paul Ezekiel, Credit Suisse)
  • New opportunities in forestry (Eric Bettelheim, Sustainable Forestry Management)

Wider opportunities

  • The EU ETS: investment opportunities in carbon capture and storage (David Hone, Royal Dutch Shell)
  • Prospective U.S. cap and trade: impact on U.S. equities (Edward Kerschner, Citigroup)
  • A global carbon market: how schemes may link; what place for what products (Steve Drummond, Cantor CO2e)

CHAPTER 4 – Risk management

Political uncertainty

  • Political commitment to climate change (Tom Burke, RioTinto)

Carbon market risk

  • Reputation risk: Kyoto projects in the media spotlight (Gerard Wynn, Reuters)
  • Managing UN project delivery risk: ratings (Amul Gogna, IdeaCarbon) and legal approaches (Peter Zaman, Clifford Chance)
  • The impact of the global credit crunch (Kjetil Røine, Point Carbon)

CHAPTER 5 - Conclusions


These contents may be subjectto change in the final report.