Carbon Emission Regs (CERs) investments

[trendie]

Does anyone know anything about this?

In a nutshell, you buy CERs, at a given trading value now, with the expectation of taking "delivery" of carbon units at some future date.
At that future date, companies can buy your credits to offset their polluting nasties.

I first thought it was something akin to options, with delivery dates, but without time decay.
Another way to look at it, is the value of the CERs are the equivalent of an IPO price, but you can buy into these CERs at a lower price.

This is not really trading, more of an intermediate return; 2-3 years.
http://www.bluenext.net

What its all about?
What are the things to watch out for?
Are these CERs specific to a given project, or transferable across any polluting companies?

thanks

 

[trendie]

anyone???

is it same or different to carbon trading?

 

[wackypete2]

I've heard of emissions trading. I'm not sure it's a type of investment or trading vehicle for the retail level here in the US.

Other than that I can't intelligently answer your questions.

I hope that helped! lol

Peter

 

[arabianights]

I don't know anything useful about it but if you want to do it then you can buy em on ECX, transaction cost will be about a tenner and the certificates are about 15k I think

 

[The Artist]

Hey,
What you described is "primary" trading of carbon credits. Indeed you can purchase CERs off a project developper and take delivery according to a forward contract once the CERs are issued.
There is also secondary trading of credits already issued. This happens on exchange (ICE/ECX, BlueNext, EEX, ..) or OTC, for spot and futures contracts. You also have options on CERs of course.
All CERs are not created equal and price varies according to their eligibility status across regional/national trading systems, their technology, and the country of issuance.
To give you an idea, spot CER is about €13/ton right now whereas you can buy primary CERs forward from a project developer for about €9, because of delivery risk.

 

[trendie]

George Osborne seems to suggest that carbon credits should have a floor price of about £14-16 per tonne by 2013.
Does this mean if you buy them at a lower price before then, are you locking in a clear profit?

http://www.slideshare.net/carbontraders/budget-2011-7372839

 

[trendie]

bump.
also, are VERs better than CERs?
are CERs due to be phased out?

 

[anley]

It's a market full of sharks and shysters, some legit others not.

I would think it's possible to make money in them, but only if you're willing to study the market for a long time. Or put it this way, chances are the counterparties to your trades will have got years of experience on you, so it's unlikely they're going to let you get hold of their money........

On the retail side, Carbon Credits are a great scam because it's a good story and 99% of retail clients who get ripped off (and ripped off with about 100% probability) won't want to do any of their own INDEPENDENT RESEARCH and will instead naivily get their 'research and ideas' from the same company ripping them off, sorry I meant 'selling them the credits'.

And these naive clients have the gall to try and blame someone else when their 'easy money' dreams turn into 100% losses. Well, why not look in the mirror if you want to spot the mug........

PS. Sorry everyone for having a go at the ripped off but I'm getting sick and tired of how many fools there are in this world. No wonder a scammers office is probably full of laughs, I bet they cannot believe how stupid and naive the general poulation is.

 

[Jocunivem]

Seems complicated.

 

[AMorgan]

It's a market full of sharks and shysters, some legit others not.

I would think it's possible to make money in them, but only if you're willing to study the market for a long time. Or put it this way, chances are the counterparties to your trades will have got years of experience on you, so it's unlikely they're going to let you get hold of their money........

On the retail side, Carbon Credits are a great scam because it's a good story and 99% of retail clients who get ripped off (and ripped off with about 100% probability) won't want to do any of their own INDEPENDENT RESEARCH and will instead naivily get their 'research and ideas' from the same company ripping them off, sorry I meant 'selling them the credits'.

And these naive clients have the gall to try and blame someone else when their 'easy money' dreams turn into 100% losses. Well, why not look in the mirror if you want to spot the mug........

PS. Sorry everyone for having a go at the ripped off but I'm getting sick and tired of how many fools there are in this world. No wonder a scammers office is probably full of laughs, I bet they cannot believe how stupid and naive the general poulation is.

YAAAAAAAWWWWWWNNNNNN...you really do point out the obvious!

 

[anley]

YAAAAAAAWWWWWWNNNNNN...you really do point out the obvious!

Hardly.

Which is why so many fall for the scam.

Next time, try to make a post that helps people. Far too many scammers about, far too many people who fall for them. So why not try to help some of these people and get the message out, like I do with about 250+ anti-scam posts a year.

Myself and others on this board over the years have probably saved people hundreds of thousands of pounds. Not tooting my own horn, just stating a fact. So think about helping rather than wasting time.

 

[AMorgan]

It's a market full of sharks and shysters, some legit others not.

I would think it's possible to make money in them, but only if you're willing to study the market for a long time. Or put it this way, chances are the counterparties to your trades will have got years of experience on you, so it's unlikely they're going to let you get hold of their money........

On the retail side, Carbon Credits are a great scam because it's a good story and 99% of retail clients who get ripped off (and ripped off with about 100% probability) won't want to do any of their own INDEPENDENT RESEARCH and will instead naivily get their 'research and ideas' from the same company ripping them off, sorry I meant 'selling them the credits'.

And these naive clients have the gall to try and blame someone else when their 'easy money' dreams turn into 100% losses. Well, why not look in the mirror if you want to spot the mug........

PS. Sorry everyone for having a go at the ripped off but I'm getting sick and tired of how many fools there are in this world. No wonder a scammers office is probably full of laughs, I bet they cannot believe how stupid and naive the general poulation is.

CERs is one of the carbon market’s most actively traded products...its politically motivated..anyone with half a brain can make money out of it.....!

 

[AMorgan]

Hardly.

Which is why so many fall for the scam.

Next time, try to make a post that helps people. Far too many scammers about, far too many people who fall for them. So why not try to help some of these people and get the message out, like I do with about 250+ anti-scam posts a year.

Myself and others on this board over the years have probably saved people hundreds of thousands of pounds. Not tooting my own horn, just stating a fact. So think about helping rather than wasting time.

Have you ever made anyone money? Or have you ever made money yourself?

 

[AMorgan]

Hardly.

Which is why so many fall for the scam.

Next time, try to make a post that helps people. Far too many scammers about, far too many people who fall for them. So why not try to help some of these people and get the message out, like I do with about 250+ anti-scam posts a year.

Myself and others on this board over the years have probably saved people hundreds of thousands of pounds. Not tooting my own horn, just stating a fact. So think about helping rather than wasting time.

Its easy to point out the scams, but why not try point out where the money IS made, or are you a typical armchair critic, cant make any money yourself but need to get yourself known for SOMETHING!

 

[pboyles]

Its easy to point out the scams, but why not try point out where the money IS made, or are you a typical armchair critic, cant make any money yourself but need to get yourself known for SOMETHING!

Go on then, tell us, I know you're dying to.

 

[AMorgan]

Go on then, tell us, I know you're dying to.

Ahh, another wannabe who simply waits for another to come up with an original idea, and then its easy for you to try pick holes! Why not try coming up with something original yourself?

Let me help you ...

The first thing you DON'T do is waste your time commenting on what everyone else is doing. Try concentrating your efforts on producing cash, for yourself.

Secondly, Its easy to spot the gaps in ANY market....at ANY time. Its usually the thing that the few are doing, rather than the typical boring approach of trying to copy others... that's when you are too late, or simply have no imagination for business.

Thirdly, (possibly where the armchair unimaginative type falls down), you actually have to get off your **** and take....wait for it...a RISK! A real risk, not just trading someone else's money, or simply sticking a grand on CFDs (real stupid).

Im assuming this is all new to you....