Carbon trading is supposed to be the next big thing. Maybe money does really grow on trees. The above mentioned company is doing a private placement at eur4 per share, min. investment is eur 5000. The projected time to list is one year and the IPO price will be EUR6 per share.
This information comes to me straight from the land of the white slopes, Switzerland. Any thoughts my wise friends?

Dave.kim,

Let me try to clarify this for you...

Carbon trading arose from the "realisation" that our human actions are contributing to the disruption of the weather pattern.The casing point is the severe drought we had in Kenya or the current arctic freeze in Europe.

Hence, the first thing that they have been working on is to have a global framework on how to control our emissions. This started with the Kyoto Protocol, which wasn't signed by some countries like USA, India and China. Hence, there was a push for a revised one to be adopted in Copenhagen last year or Mexico this year.

Once adopted, the revised agreement will "define" a limit on the maximum emissions for each country. The limits will be reduced over time...to encourage greater efforts to refuce the emissions.

The agreement notes that there will be companies, countries and/or regions that will always exceed the limit and others which will not. Hence, there is a market exchange mechanism where the over emitters can buy excess credits from the ones that do not.

This would now explain what The Merchant is taking about and the recent articles in the press about KPLC, KenGen and Mumias earning funds for their carbon credits.

One last thing to note. As part of the exchange market, there is a body (I think it's part of the UN) that had to certify that the three companies did indeed have excess credits.

Regards

Very well put by scooby. Now the firm im talking about has projects in south america, indonesia even Kenya where they do aforestation and reaforestation projects and actively sell these carbon credits so gained. It is their main revenue and when you buy into this company your expectations should be based on this. I will furnish you gentlemen with the finacial statement of this firm once I have it. The only trouble now is that I am getting this information through an asset management firm. Ill keep you all posted. Thank you.

so what is carbon credit...

Selah,

As you noted, its all depends on the person you are asking as to whether the carbon trading initiative makes sense or not.

For instance, in South America (read Brazil and Argentina), they are stating that the rearing of cows for meat is doing more harm in polluting the environment compared to a normal factory! So there have been suggestions that we should all move alway from meat into a vegan diet...remember the lady who wore spinach on the junction of Kimathi Street and Kenyatta Avenue.

What surprised me about China and India with the Copenhagen meeting last year is that they are more enthusiastic about this initiative than other countries especially the USA. Infact, China is already taking steps to reduce its reliance of coal in generating electricity - with or without the agreement.

Regards

The reason why they are supportive is because the initiative makes those countries which pollute the environment buy credits from countries which dont this system is skewed in that it makes the world powers continue polluting since developing countries which do not hav the industrial capacity will be fooled by the money envisaged by this program but in reality the program will favor the developed world.

I think the best way to curb this pollution problem is to come up with a good tax cap across the globe.

Well, possibly but you can also wait a few months and get them at eur 5 if you miss the first batch. There is a big sector out there dealing in private placements. I cannot guarantee that its not a con thats why I have tabled this matter to you able minds. What is important in my opinion is that this company can have sustainable profits and growth in the future.Trading carbon credits is what they do and its the only reason Ive mentioned it.
On to you.