Environmental Financial Products provide a wide range of financial solutions to corporate customers for managing their environmental obligations.
Macquarie’s global team of dedicated environmental market professionals are located in the major environmental centres with offices in London, Houston, New York, Hong Kong, Beijing and Sydney.
Environmental Financial Products offers a full suite of solutions centred on three core offerings; supply, financing and risk management.
Supply, financing and risk management
Macquarie couples its depth of experience as a top tier, global commodities trading and finance house with its environmental markets expertise to offer:
- Access to supply: origination and secondary market supply
- Strong pipeline of international emission reduction projects available for direct investment and carbon credit purchase
- Macquarie has a full service trading desk dealing in secondary carbon credits including CERs and ERUs as well as domestic emission allowances and renewable energy certificates
- Financing: a full range of debt and equity financing, including:
- Inventory financing for new and existing environmental market compliance units
- Derivative financing for emissions abatement and renewable energy projects
- Solutions for environmental risk management: structured products and risk management solutions tailored to meet each client’s specific requirements
- Macquarie is a provider of fixed price certainty through forwards and swaps
- Macquarie can provide price protection via options and collars
Case Study - Primary CER Origination
| Project key features: |
| Seller: |
Beijing Taiyanggong gas-fired Trigeneration Co (BEIH) |
| Buyer: |
Macquarie Bank Limited |
| Volume: |
4.8 million non-guaranteed CERs delivered between 2008-2013 |
| Certification: |
documented under Certified Emission Reduction Purchase Agreement |
| Commissioned: |
January 2008 |
| Registered: |
February 2008 |
| Delivering CERs: |
since early 2009 |
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Macquarie managed delivery risk to maximise returns and ensure project completion
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- Contracting risk minimised due to Macquarie’s extensive due diligence, robust transaction structure and contracting terms
- Counterparty performance risk mitigated through Macquarie’s physical and legal control over CER deliveries from project
- Performance risk managed by selecting a high-quality Chinese counterparty
- Project completion risk significantly reduced via strong Chinese Government support [the project is part of the Beijing Olympic infrastructure]
- Strong and demonstrable environmental benefits achieved
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