What can be traded?
Envex OTC products include tradeable contracts for physical delivery of the following environmental units, all of which can be transacted via the Mercari ECN:
These include contracts for physical delivery of:
- Australian Emissions Unit (AEU)
- A tradeable instrument which represents the right to emit one tonne of greenhouse gas emissions under the proposed Carbon Pollution Reduction Scheme (CPRS). Note: The CPRS is still under development and the ultimate legislation to establish the scheme may adopt a different term.
See http://www.climatechange.gov.au/emissionstrading/ - Certified Emissions Reduction Units (CERs)
- The Kyoto Protocol includes a so called flexibility mechanisms known as the Cleaner Development Mechanism (CDM) which allows countries to meet their emission reduction obligations by implementing projects which reduce greenhouse gas emissions in developing nations. Certified Emission Reduction Units (CERs) are a fully tradeable international carbon credit issued under the Cleaner Development Mechanism. European companies can also use CERs to meet part of their emission target under the EUETS.
See http://cdm.unfccc.int/ - NSW Greenhouse Gas Abatement Certificates (NGACs)
- A tradeable certificate created under the NSW Greenhouse Gas Abatement Scheme which represents 1 Tonne of greenhouse gas emissions.
See http://www.greenhousegas.nsw.gov.au/ - Renewable Energy Certificate (REC)
- A tradeable certificate created under the Australian Mandatory Renewable Energy Target which represents 1 MWh of renewable electricity generation produced in Australia and its territories.
See http://www.climatechange.gov.au/renewabletarget/ - Gas Electricity Certificate (GEC)
- A tradeable certificate created under the Queensland Gas Scheme which represents 1 MWh of electricity generated by an electricity generating unit fuelled by gas and delivered by an electricity network to an end-user located in the Australian State of Queensland.
See http://www.dme.qld.gov.au/Energy/gasscheme.cfm/ - Victorian Renewable Energy Certificates (VRECs)
- A tradeable certificate created under the Victorian Renewable Energy Target scheme (VRET) which represents 1 MWh of renewable electricity generation produced in Victoria.
- Green Power Right (GPR)
- A tradeable certificate which represents a MWh of renewable energy under the Australian Green Power Scheme.
www.greenpower.gov.au
Envex products may include other voluntary and regulated market instruments such as:
- Weather Derivatives
- A financial instrument where the value of the instrument changes in response to changes in an index that represent certain weather conditions. For example a precipitation hedge is a type of Weather Derivative that becomes more valuable in times of drought. A company whose revenue is dependent on rainfall may buy a precipitation hedge to limit its exposure to a drought.
- Energy Efficiency Credits
- A tradeable certificate representing a reduction in energy consumption. For example Victorian Energy Efficiency Credits (VEECs) created under the Victorian Energy Efficiency Target (VEET).
- Water allocations
- A tradeable certificate representing the right to consume a unit of water.
- SOx & NOx Permits
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SOx Permit
A tradeable permit representing the right to emit oxides of Sulphur (such as SO and SO2) into the atmosphere. SOx emissions are a key cause of acid rain and are generally considered to pose health risks to humans.NOx Permit
A tradeable permit representing the right to emit oxides of Nitrogen (such as NO and NO2) into the atmosphere. NOx emissions are a key cause of smog and are generally considered to pose health risks to humans. - Biodiversity credits
- A tradeable certificate representing an overall improvement in biodiversity.
Our full product specifications can be downloaded here