WebConnect

15 October 2010

15 October, 2010 London - The Carbon Rating Agency (an IDEAcarbon company), the world’s leading provider of ratings, research and strategic advice on carbon finance, today launched CARBONrisk, an innovative risk estimation tool which calculates the forecast value of CERs generated by projects under CDM and JI, or a portfolio of such projects.

 

CARBONrisk provides an innovative way to analyse and value carbon projects and portfolios, bringing financial markets’ risk measurement practice and capabilities to carbon markets.

 

“The carbon markets significantly lag the established financial markets in their ability to generate and deploy the funding deemed necessary to address the effects of climate change” said Ian Johnson, Chairman of IDEAcarbon.

 

“The launch of CARBONrisk will help answer an increasing call for carbon markets to mature and better fulfil their function.”

 

Carbon markets today are facing a number of challenges, which include persisting uncertainty over the 2012 post-Kyoto landscape, the delay to a US climate or energy bill, and lack of clarity on the continued use of CERs in Phase III of the EU ETS. All these issues are contributing to a general lack of liquidity.

 

In order to attract more investment, carbon markets need new risk management tools to measure delivery risks of CERs and calculate the forecast value of CERs.

CARBONrisk is based on the established and published models and methodologies of the Carbon Rating Agency. It employs commonly used statistical and parametric analytical techniques.. It is not a ‘black box’ model, and its analytical functions are documented for users.

The product significantly improves on existing commercially available products and enables more reliable and deeply analysed decisions to be made by its users..

Additionally, CARBONrisk allows the liabilities arising from carbon assets to be measured and controlled consistently with other financial assets.

CARBONrisk is the first in a series of analytical tools from The Carbon Rating Agency. The envisaged suite of products will progressively cover a range of environmental assets, and is designed to make available analytical tools developed by other independent third parties, which complement the The Carbon Rating Agency’s offering.

CARBONrisk initially incorporates a valuation tool which forecasts the future value of CERs generated by projects under CDM, or a portfolio of such projects. An optional risk-based valuation tool will be offered later this year as a premium add-on.

 

About IDEAcarbon

 

IDEAcarbon is a leading professional services firm providing intelligence and advice to organisations operating or interested in carbon markets. Founded in 2006 by Shandi J. Modi, and with offices in London, Singapore and New York, the company helps governments, financial institutions, corporations, developers and traders develop novel, first-class ideas and strategies to navigate through the uncertainty and volatility present in the carbon sector.

IDEAcarbon offers the critical and necessary tools to help clients in the creation of the potentially large and successful alternative asset class that is carbon alongside some of the most influential decision-makers in the carbon and environmental community.

 

About the Carbon Rating Agency

 

The Carbon Rating Agency (CRA) is a wholly owned subsidiary of IDEAcarbon – part of the IDEAGlobal group. Its mission is to improve the functioning and efficiency of the carbon markets. The Carbon Rating Agency's ratings and opinions are unencumbered and independent - CRA does not trade, buy, sell or originate carbon credits. Following two years of intensive research and investment in developing the carbon ratings process, CRA was successfully launched in June 2008.

The Carbon Rating Agency brings rigorous, transparent, comparable standards to the complex and rapidly changing global markets for carbon. These standards will enable the global carbon markets to continue their exponential growth and allow them to attract the significant levels of finance necessary to efficiently address the long term problem of global climate change.

Media Contacts:

Kreab Gavin Anderson 020 7074 1800

ideacarbon@kreabgavinanderson.com

Helen MacBain

Renfeng Zhao

Disclaimer:

All information contained herein has been obtained by the IDEAcarbon from sources believed by it to be accurate and reasonable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and the IDEAcarbon in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. All information contained herein must be construed solely as statements of opinion, and the IDEAcarbon.