Top Banner
JD Investment Brief
7
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: JD Investment Brief

JD Investment Brief

Page 2: JD Investment Brief

Eco Global EGM is a private limited company based in the City of London. We work solely within the compliance market and rather than being a wholesale buyer of credits we actually take the unique position of owning significant, if not majority stakes in the underlying renewable energy projects. This gives us full control of all aspects of the processes involved.

Our first project – Avoided Deforestation Project (Manaus, Brazil) - is about to bear fruit and our investors will see profit from this within the next quar-ter of circa 18%, while the subsequent projects we have brought to the mar-ket are all on track in terms of delivery time and projected returns.

Private InvestorsEGM invests directly in renewable energy projects that subsequently pro-vide the Private Investor a comparable entry point and return as the large financial institutions. Barclays Capital, Morgan Stanley and Goldman Sachs have all established a Carbon Trading Department and Invested in the Car-bon Emissions market.

Partners - Eco Systems Services LLC - VitolEco Global holds a 50% stake in a number of projects with Eco Systems Services LLC. Their CEO, Gonzalo Castro de la Mata is special advisor to the UN in the renewable energy sector. He also manages a $4 billion environ-mental fund with the World Bank in ‘green’ projects.http://www.ecosystemsservicesllc.com/about

Page 3: JD Investment Brief

Eco Global holds a 50% stake in a number of projects with Eco Systems Services LLC. Their CEO, Gonzalo Castro de la Mata is special advisor to the UN in the renewable energy sector. He also manages a $4 billion environmental fund with the World Bank in ‘green’ projects.

http://www.ecosystemsservicesllc.com/about

All Eco Global Markets projects can be independently verified via the UNFCCC. – United Nations Framework Convention on Climate Change. Details of all projects include; project title, participants, number of credits produced annually and timeframes.

http://unfccc.int/2860.php

The Vitol Group was founded in 1966 in Rotterdam, the Netherlands. Since then the company has grown significantly to become a major participant in world energy markets and is now one of the world’s largest

independent energy traders. Its trading portfolio includes crude oil, oil products, LNG, natural gas, coal, power, metals and carbon emissions. Vitol trades with all the major national oil companies, the integrated oil majors and the independent refiners and traders. Globally Vitol trades over 5.5 million barrels of crude oil and products per day and revenues in 2010 were $195 billion.In addition to its trading business, and its 50% share in the storage and terminals business, VTTI, with 11 terminals on five continents, Vitol has an exploration and production business which includes interests in Ghana, Cameroon, Kazakhstan, Russia and Azerbaijan.

http://www.vitol.com

Partners - Eco Systems Services LLC - Vitol

Page 4: JD Investment Brief

Investment OutlinedOur Private Clients are taking CER credits for a 12-18 month period. In Q1 / 2013 we are entering what is known as Phase 3 of the EU ETS (European Union Emissions Trading Scheme). As a direct consequence the major financial institutions are predicting the value of the credits to have a positive rise in value. Looking at a conservative scenario Thomson Reuters have earmarked a 20% rise in the value of this commodity whereas looking at more positive predictions Barclays Capital have made a statement calculating a 43% rise in value. We feel in the current climate that symbolises extremely robust growth in comparison to other investment vehicles.

ForecastThe following table is based on the average CER price May 2013 provided by Investment Analysts from 12 of the major Investment Banks. Ave – 18.43EUR 14.70GBP

Invested Amount

Price per CER

Number of Credits

Number of Credits

Projected Profit

Increase %

£10,005.00 £11.50 870 £12,789.00 £2,784.00 27.83%

£25,003.00 £11.00 2273 £33,413.10 £8,410.10 33.64%

£50,001.00 £10.50 4762 £70,001.40 £20,000.40 40.00%

£75,000.00 £10.00 7500 £110,250.00 £35,250.00 47.00%

£100,006.50 £9.50 10527 £154,746.90 £54,740.40 54.74%

£250,002.00 £9.00 27778 £408,336.60 £158,334.60 63.33%

Page 5: JD Investment Brief

Reasons for anticipated increases of CER prices:There are several reasons why analysts are predicting the rise in carbon prices however 3 specific factors will have the most impact.

1) EU ETS emission reduction currently is set at 5.2% up to 2012. Emission targets have in-creased 4 fold, companies must reduce emissions by 21.5%. 2012-2020 The increase can only be achieved by purchasing carbon credits or investing in Renewable Energy projects.

2) The current CER’s on todays’ market are a combination of 77.3% industrial gas credits and 22.7% ‘green’, (renewable energy projects). As of April 2013 all industrial gas credits will be decommissioned, retired. 77.3% of supply will no longer be available.

3) The Aviation & Maritime industries have been added as new sectors and constitute 20% of all global Co2 emissions. All commodity pricing is driven by supply and demand; there will be 77.3% less credits avail-able in May 2013 and 20% more clients!

Base Year Sectors Emission Targets Set

1990 Oil Refineries/ Power & Heat / Energy 2.5% (by 2007)

1990 Then added - Metal / Pulp & Paper 5.2% (by 2012)

2005 Then added - Aviation & Maritime 21.5% (by 2020)

Page 6: JD Investment Brief

• All EUA government subsidies will be phased out in 2013. Companies will have to go to the open market to purchase carbon credits.

• Large industrial polluters require larger volumes of credits with longer life spans in order to hedge forward many years to mitigate against price increases of offsets (Buying the strip).

• Cut-off for any new projects registered by industrialised countries (Annex II Countries) in other industrialised countries as of December 2012. At this point, only projects registered in Less Developed Countries (LDC) will be permitted under the United Nations Clean Develop-ment Mechanism (CDM).

How to set up Eco Global Markets Account

We require:

• Application form / Trade Doc’s - Summary of your Investment/Position • Anti-money laundering documentation required with photographic documents; • A copy of either a passport or driving Licence.• Proof of address, private or company no older than 3 months • Details of final settlement, electronic transfer. B.A.C’s or C.H.A.P’s. cheque / debit, credit card / pay pal

Page 7: JD Investment Brief

Head Office: Heron Tower

Call: +44 (0) 20 3514 0500

email: [email protected]

110 Bishopsgate

City of London, EC2N 4AY, UK