Excellence in Emission Markets

Winner: Thomson Reuters Point Carbon

The developing markets for emissions, associated legislation, trading systems and products are key to facilitating the realisation of a new energy infrastructure. Recently acquired by Thomson Reuters, Thomson Reuters Point Carbon are the winner of the category for Excellence in Emission Markets in these inaugural Commodity Business Awards.

Point Carbon began life at the turn of the century providing critical market intelligence for European carbon and energy markets. Since then, it has expanded into the North American and Asian markets, including hosting highly rated regional Carbon Market Insights conferences where the key players in the sector come together.

Point Carbon’s Carbon Market Trader is an analysis tool for the European carbon market and is used by the majority of market players. Carbon Market Trader provides continuous updates and analysis of the key factors that affect the price of EU allowances including historical and predicted CO2 emissions across the continent; CER issuance forecasts; prices and volumes; price forecasts; policy and regulatory issues and technical analysis.

Point Carbon’s Carbon Valuation Tool provides empirical, independent valuation of global carbon projects, (CDM and JI) using the world’s largest database of carbon projects. The database of carbon projects used by the Valuation Tool has been compiled over 10 years and contains around twice as many more projects than have been made public by the UN. CDM projects are a risky business and identifying and quantifying these risks is increasingly important. There is now enough Point Carbon data to allow risks to be calculated using statistical analysis, allowing Point Carbon to determine the value of a project or a portfolio of projects. The Valuation Tool uses a team of 10 researchers worldwide to gather market intelligence on proposed projects, as well as 10 further experts to empirically analyse the information gathered, enabling it to offer one of the most comprehensive carbon rating services available. Point Carbon’s Carbon Valuation Tool offers a valuations service both on a project and country basis, allowing users to assess the likelihood of a given project delivering its stated emissions reductions in the stated time period.

Point Carbon Advisory, through its Perspectives Team is working with donor and developing countries (currently Mexico) to establish a framework that brings together the financing, institutional structure, and delivery of programmes applied across whole sectors that reduce greenhouse gas emissions. The framework is piloting what is expected to be nominated Nationally Appropriate Mitigation Actions (NAMAs) under the UN, a central plank in the future climate regime.

NAMAs are intended to bridge the gap between finance, economic development and climate protection, and therefore represent the possibility for developing countries to obtain large-scale additional funding for low carbon growth. The framework includes developing the right institutions, protocols, and regulatory environment to enable the private sector to reduce emissions at scale and attract Foreign Direct Investment while doing so. The critical success factor is that these programmes are demonstrating how developing countries can attract investment from the fast-track financing pledged in the Copenhagen Accord for emissions reduction at a scale that makes a difference. The NAMA concept for Mexico will be presented at the annual climate negotiations in Cancun (Mexico) in December this year. It covers energy efficiency programmes in the Mexican residential housing sector. Point Carbon Advisory is independent and has a large team of dedicated experts working to innovate in carbon and energy markets as well as policy.

The Carbon Finance and Analytics Programme 2010 is a joint educational initiative run by Point Carbon and the London Business School developed for professionals wishing to excel in the global carbon and energy markets. Born of a mutual interest in delivering cutting-edge research, innovative analytical tools, and insights into carbon and energy markets, Point Carbon and the LBS are looking to establish the most comprehensive professional initiative to provide foundations for carbon finance, trading, analytics and risk management.

The programme is comprehensive, rigorous and demanding, with the emphasis on mastering a wide range of analytical tools and techniques required to be successful in the carbon markets. The timetable maximizes learning opportunities by coupling a rigorous academic framework with real-world relevance and practical application through case studies and teamwork.

“Point Carbon’s commitment to the emissions sector is unsurpassed and, as reflected in the strength of its nomination and the votes cast by the industry, Thomson Reuters Point Carbon have demonstrated their credentials as deserving winners of this year’s Excellence in Emission Markets Award,” says Guy Isherwood, Awards Patron and Publisher of Commodities Now magazine.

The Award for Excellence in Emission Markets 2010 was presented to Fernanda Gumao, Energy Analyst with Thomson Reuters Point Carbon by Gyles Brandreth, celebrated British author, broadcaster, actor and former Conservative Member of Parliament.