We work actively with clients developing Clean Development Mechanism (CDM) and Joint Implementation (JI) projects to create maximum value for the seller at an acceptable level of risk. We have significant experience in guiding project developers through the intricacies of the CDM process from Project Idea, through registration to structuring appropriate, marketable and transactable CER and ERU trades. Our years of experience means we fully understand all the issues associated with the process (CDM Executive Board, Registries and CER issuance are just some examples).

We have successfully finalized commercial terms for sale of over 10 million Certified Emission Reductions (CERs) created by candidate CDM projects in 2004, and arranged the first multi-million ton transaction from a project which had an approved methodology (see News Articles for more infomation).

Natsource can present interested buyers with a range of CER offers at competitive prices from several projects across a range of technologies and location. Our experts will assist in providing advice and tailoring stuructres to minimise delivery risks for companies in any Annex B Kyoto Country.

The EU Linking Directive

For EU companies, this directive allows certified emissions reductions (CERs) created by Clean Development Mechanism (CDM) projects and emission reduction units (ERUs) created by Joint Implementation (JI) projects to be used for compliance with emissions limitations. CERs can be used for complaince in the first phase of the scheme (2005-2007) and both CERs and ERUs used in the 2nd phase (2008-2012)

In exactly the same way as an operator can surrender EU allowances in the national registry to be counted against its verified emissions, it may also directly surrender a CER or ERU to meet compliance. The process does not involve any swapping of CERs or ERUs for allowances.

The directive did not directly impose quantitative limits on the use of CERs and ERUs for compliance; however each Member State must approve the use of such credits for compliance.  Reductions created by nuclear energy are not eligible for compliance with EU ETS requirements in either phase, and sequestration activities are not eligible in the first phase.  There are also restrictions on the use of CERs and ERUs created from certain large hydro projects.

The directive provides opportunities for companies regulated by the EU ETS to reduce their compliance costs.  Natsource has a large supply of CERs available to meet clients’ needs.  We have entered into exclusive arrangements to market CERs at competitive prices (prices currently lower than EU allowance offers).   Natsource has already structured and executed several CER trades to European buyers, including the first large-scale forward CER trade between two private companies in Europe.

For more infomation on the Kyoto Mechanisms please contact one of our global Transaction specialists:

London - Tel. + 44 (0) 20 8213 5333 E-mail london@natsource.com

New York - Tel + 1 212 232 5305 E-mail doppenheimer@natsource.com