We are applying our skills and knowledge in renewable energy finance to build an emerging business in renewable energy certificate or ‘carbon’ trading.
As part of the Australian Government’s Renewable Energy Target Scheme (the Scheme), Australian electricity retailers must meet mandated renewable energy targets. For 2011, the renewable power target is 5.62%, rising to 20 per cent by 2020.
Electricity retailers typically meet these requirements through purchasing renewable energy certificates either directly from renewable energy producers (wind, solar and hydroelectric) or by purchasing them via a trader, such as ANZ.
Our Global head of FX and Commodities, Eddie Listorti, said that we are being approached by clients because we are recognised as a leading renewable energy financier and have a growing business in energy certificate or ‘carbon’ trading.
“We’ve carefully built a viable business in carbon trading. Having the right presence in this market is important and will help us to capture future growth in carbon trading as renewable energy targets gradually increase,” Eddie said.
The purpose of the Scheme is to encourage the additional generation of electricity from renewable sources; reduce emissions of greenhouse gases in the electricity sector; and ensure that renewable energy sources are ecologically sustainable.
The scheme also seeks to provide financial incentives for investment in renewable energy power by placing a legal obligation on energy companies such as electricity retailers, to purchase and surrender renewable energy certificates each year.