Carbon Trading
BBY provides a dedicated transaction and advisory service to corporate Australia seeking to manage their carbon and environmental market risks. BBY also provides general advice to wholesale clients seeking exposure to this asset class. BBY is at the forefront of the major traded markets including the Australian, New Zealand and European Emissions Trading Schemes.
On July 1 2012, Australia introduced the Federal Government's carbon tax - a fixed priced on carbon which will run for three years. From July 1 2015, it will transition to an emissions trading scheme or a floating price regime, similar to that which operates in Europe and New Zealand.
During the fixed price period, Australian companies which emit 25,000 tonnes of CO2 or more will pay a fixed charge of A$23.00 per tonne, with this price indexed to inflation over the next two years. Whilst there is limited trading opportunities to reduce overall cost during this fixed price period, liable companies can access theoretically cheaper credits of up to 5% per annum from eligible projects under the Carbon Farming Initiative (CFI) - i.e: Carbon Conscious reforestation projects.
Our experienced carbon market team develop vanilla and structured transactions for clients in the energy, utility, mining and transport sectors as well as offering investors access to the environmental trading market.
Transaction capabilities in the major environmental market products include;
Carbon Markets
- Certified Emission Reductions (CERs) & Emission Reduction Units (ERUs)
- European Allowances (EUAs)
- Australian Carbon Credit Units (ACCUs)
- Carbon Units (CUs)
- New Zealand Units (NZUs)
Renewable Markets
- Small-scale Technology Certificates (STCs) and Large-scale Generation Certificates (LGCs).
Through our over-the-counter (OTC) and exchange-based operations, BBY offers spot and forward pricing as well as option related structures to assist clients manage their environmental market liability.
BBY invites you to join our Carbon Brief distribution list.* The Carbon Brief focuses on topical events and recent pricing for the Carbon related products.
To find out more about BBY’s carbon and environmental trading services, please call Ben Meikle on the Carbon and Environmental Markets Trading Desk on +61 (0) 3 8660 7205.
* Qualified applicants only