Essent Trading, CCG and ING execute agreement for the purchase of emission reduction units
Core Carbon Group, Essent Trading and ING Bank to collaborate on Joint Implementation Project
Geneva, 06 June 2008 - Geneva based Essent Trading and Dutch bank ING today completed an emissions reductions purchase agreement with the Danish based company Core Carbon Group ApS.
Under the agreement, greenhouse gas emissions will be reduced in a project in Russia. The project is being developed by Core Carbon Group as a Joint Implementation project under the rules of the Kyoto Protocol, created by the United Nations to help address climate change. The Joint Implementation ('JI') mechanism allows a country with a Kyoto Protocol emission reduction target to meet part of its target by carrying out a project to reduce greenhouse gas emissions in another country. Core Carbon Group will function as the emissions reduction project developer and investor for the project in Russia.
The resulting emissions reductions are referred to as Emissions Reductions Units ('ERUs') under the rules of the Kyoto Protocol. Essent Trading will purchase a substantial part of these Emissions Reduction Units from Core Carbon Group, in a deal intermediated by the ING’s Emissions Products Desk in Amsterdam and the New York division of ING’s Financial Markets Group.
William Shor, CEO, Core Carbon Group ApS, said, 'We at CCG are pleased to have completed an innovative transaction with a leading financial institution like ING and a leading European energy company like Essent. The involvement of players of their caliber underlines the strength of demand for ERUs from Russian Federation that arise from projects that CCG develops.'
Nyame de Groot, Vice President Emissions at Essent Trading commented, 'This deal is the start of a solid partnership with market leaders ING and Core Carbon Group. We are excited about the opportunity this project gives us to play an active role in the Russian emissions market and look forward to further developing our business in Russia. This emissions reduction project will contribute towards reducing the impact of global warming and climate change and is part of our commitment to support Kyoto.'
Peter van Eijndhoven, Vice President Emissions Products at ING, adds 'ING is pleased to bring these two leading players in the global carbon market, Essent Trading and the Core Carbon Group, together in this unique transaction, made possible by the co-operation of ING’s Financial Markets team in New York and our Emissions Products team in Amsterdam.'
About Essent Trading
Essent Trading, headquartered in Geneva, Switzerland is a prestigious asset backed merchant energy trading business with its roots in the Netherlands. Essent Trading is recognized as a market leader in Energy trading in Continental Europe and voted as a top tier trading house by Risk Magazine since 2004. Our parent company, Essent N.V. (www.essent.nl) is the largest energy company in the Netherlands with approximately 11,000 employees, more than 5000 MW of diverse generation portfolio and over 2.6 million customers across the Netherlands, Belgium and Germany. Essent is ranked among Europe's leading companies in Renewable and Sustainable energy generation. For more information, visit www.essenttrading.com.
About Core Carbon Group ApS
Headquartered in Copenhagen, the Core Carbon Group originates and develops carbon emissions reductions projects in Russia and the CIS. CCG’s portfolio consists of carbon projects across several verticals. The CCG team draws on its expertise in carbon asset development, project management, capital markets, engineering, and law to execute its projects. CCG has a diversified project portfolio across project types, methodologies and geographies. For more information, visit www.corecarbongroup.com.
About ING Bank
ING is a global financial institution of Dutch origin. It offers banking, insurance, and asset management to over 75 million private, corporate, and institutional clients in more than 50 countries. ING Wholesale Banking is one of six businesses of ING Group and provides services to corporate and institutional clients across Europe, the Americas, and Asia. ING’s Emissions Products team is part of ING Wholesale Banking with offices in Amsterdam and Shanghai. The team offers a range of services related to the Kyoto Protocol and the creation and sale of carbon credits. DSG is part of ING Financial Markets covering clients and products in both developed and emerging markets with offices in Europe, Asia and the Americas. DSG provides tailor-made solutions to match clients’ needs and in carbon products is leading Financial Market’s foray into this nascent market. For more information, visit www.ing.com/carboncredits.
Published: 06 June 2008