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Carbon markets

We trade in all carbon markets.

We carry out spot and forward transactions in all carbon markets. We swap EUAs for CERs and buy or sell your emission allowances both spot and forward. Our goal is to achieve the best possible conditions for our clients based on their situation and expected allowance requirements.

In 2005, the European Carbon Emissions Trading Scheme (EU-ETS) was launched, regulating some 13,000 European industrial installations. This regulation establishes that, at the end of each calendar year, installations must surrender a number of allowances equivalent to their verified CO2 emissions during that period. 

If an installation needs to emit more CO2 than the number of allowances it has, it has two options:
  • go to the market to purchase additional allowances;
  • invest in energy efficiency measures or process improvements to reduce its emissions.

Similarly, if it emits less CO2 than the volume of allowances it has, it can go to the market to sell its surplus or save it for future use. 

This system also relies on the flexible mechanisms established by the Kyoto Protocol, in particular the Clean Development Mechanism (CDM). CDM projects generate cheaper emission allowances than EU-ETS allowances, called CERs.

Companies owning installations affected by this regulation have the ability to use allowances issued by CDM-registered projects up to a certain percentage of their emissions. Therefore, if you need to buy emissions, you can buy CERs up to a certain limit, thus saving money.  If you have excess allowances, you can also exchange your EUAs for CERs to benefit from the price difference. This practice is known as EUA-CER Swap. . 

We will help you to cover your needs, both for buying and selling CO2, in the best conditions. For this purpose, we can offer the following services::

Spot e Forward:

  • Spot: Spot market transactions involve the purchase and sale of emission allowances with payment or collection in a short period of time. This means that the transaction is settled immediately or very close to the trade date.
  • Plazo: A forward transaction involves locking in current price and quantity terms for the purchase and sale of emission allowances, with payment and delivery occurring at a specified future date. This allows the parties to guarantee a specific price and quantity for the transaction, providing some predictability and risk management for both parties.

EUA-CER SWAP

The exchange (or swap) of emission allowances between the European Emissions Trading System and cheaper allowances (CERs) from the Kyoto Protocol's Flexibility Mechanism is a business opportunity for our clients. A swap between these emission allowances involves the sale of EUAs and the purchase of CERs simultaneously. Both operations are cleared in a single transaction.
  1. Agreement of conditions between parties (price, quantity, payment method, etc.);
  2. Capwatt sends the ballots;
  3. Client sends EUAs to Capwatt (Capwatt sells EUAs);
  4. Capwatt sends CERs to client (Customer buys CERs);
  5. Both parties issue invoices;
  6. Capwatt proceeds with the payment of the net result.

 

 

 

Eletricity markets

We advise our clients on both the purchase and sale of electricity. 

Electricity is one of the main variables for our clients, whether they are consumers or generators.

We offer our clients advisory services on the best contracting modalities, both for the sale of their electrical energy and the purchase of electricity supply from the marketers.

We advise both on the purchase or sale of energy in the physical market and on the possible coverage of the forward price. Our goal is to maximize the benefits or minimize the costs of our clients. We design your energy purchase or sale strategy according to your individual needs. 

 

 

 

Carbon footprint calculation

The carbon footprint is the measure of the contribution of a given organization or individual to the effect of climate change.  It refers to the amount of Greenhouse Gases (GHG) emitted by the activity.

We can calculate the Carbon Footprint of our clients, either for their registration in the Registry enabled by the Ministry of Environment or for delivery to clients or suppliers. We also prepare their emissions reports to comply with the requirements of the Carbon Disclosure Project (CDP).

We can also develop a software tool capable of calculating our clients' Carbon Footprint online in much shorter periods than the usual annual calculation and display the results through the client's website.

 

 

 

Compliance strategy

We calculate your emission allowance needs, as well as the changes in allowances required for the installation or closure of new production lines or plants.

We also design the strategy of buying or selling the necessary or surplus allowances of our clients, either scheduled over time or based on price curves in the futures market. Likewise, we can develop a strategy to reduce or compensate for greenhouse gas emissions.

 

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