Financial Advice Disclaimer

Transcription

1

2 Financial Advice Disclaimer Greenbank has an Australian Financial Services Advice for Carbon and Derivatives and no part of this presentation is to be taken as financial product advice and you should seek independent advice in respect of your dealings within the environmental markets. These views are purely my opinion.

3 Who is Greenbank? Greenbank Environmental Pty Ltd (GBE) is Australia s largest aggregator and trader of environmental certificates in Australia. GBE aggregates and trade across the Five Domestic Environmental Markets (LRET; SRES; VEET; NSW ESS; and CFI).

4 Who is Greenbank? We are a family based company operating since 2003 employing 25 people in Melbourne & Sydney.

5 What is Aggregation? Aggregation is a process whereby either: Multiple Participants/Projects are brought together under one project by one/multiple Participants ( Bundling ); and/or A third party acts as either: Agent; or Participant (i.e. Project Proponent) and legally entitled to carry out the Project(s)..

6 Types of Aggregation? Two types major of aggregation: Project Aggregation: multiple activities under the same Method bid under one contract; or Contract Aggregation: multiple activities under different Methods bid under one contract.

7 Aggregation Requirements/Process What do you need to aggregate projects: An Australian Financial Services Licence (AFSL) to advise, deal or make a market with Australian Carbon Credit Units (ACCUs) it s a financial product ; An Australian National Register of Emissions Unit (ANREU) Account

8 Aggregation Requirements/Process Fit & Proper Person Test Federal Police Checks and 3 Pieces of Identification (i.e. replaces the Recognised Offset Entity step) (certified); The Legal Right to Carry out the Project & receive financial gain (if Participant: not just Agent): Documents provided on project registration or by first audit;

9 Aggregation Requirements/Process Client Information Form (New Projects); Application to Register a Project & Participant and/or Agent to act on your behalf with the CER (New Projects); Meet Eligibility Criteria under the Act Newness Requirement; Regulatory Additionally Requirement; Government Program Requirement.

10 Aggregation Requirements/Process Project Feasibility Assessment; Financial Feasibility; Organisational Capability; Method Selection; Technology Requirements; Cth, State, Territory planning requirements etc.

11 Aggregation Requirements/Process Qualify/Register for Auction (if desired): Auction Qualification Commercial Terms (information about the project(s), likely volumes, and Conditions Precedent and banking details); Auction Registration Delivery Terms (Apply to participate in Auction, set final delivery volume & expiry date for contract); and Auction Participation Financial Terms (bid price via Austender Website (not up yet) for volume into single round, pay-as-bid, sealed-bid auction);

12 Aggregation Requirements/Process Report (minimum 6 months; maximum 24 months can procure earlier audits with CER approval); Audit (Initial Audit and Subsequent Audits based on Volume. For example: 3 for 0-49,000; 4 for 50, ,999; and 6 for greater than 150,000 per annum). Slightly different regime for existing CFI Projects Transitioning with non Initial Audit but still submit the total number of audits as subsequent audits (minimum of 3 audits over the crediting period);

13 Aggregation Requirements/Process CER Issue ACCUs; Participant Sells ACCUs to CER under ERF Contract; Participant sells any over supply to Secondary Market, voluntary market or banks etc.;

14 Why Aggregate Projects? Benefits to site owners : Reduce Audit Costs (Project Aggregation); Reduce Legal Costs; Reduce Reporting Costs; Reduce Project Management Costs; Reduce Contract Management Costs; Improve Productivity (get on with your core business)

15 Contracting Options Three types of contracts (one contract per Project per time): Standard Contract - 7 year contract (market and price certainty but volume risk and price risk); Intermediate Contract (1-6 years) (some market and price certainty and flexibility to deal with volume risk but funding risk); Immediate Contract (spot) (flexibility).

16 Contracting Options Cannot exceed 7 year contract term. Maximum of 3 short term contracts over 7 year period. If choose intermediate/immediate term contract at first auction cannot bid again until 2016/17 financial year.

17 Contracting Options Minimum Bid for Immediate Delivery (spot) contracts is at least 10% of the forward abatement estimated from that project; or 15,000 tonnes whichever is the lower.

18 End Thank you