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Troubled NSW carbon credit producer Easy Being Green told to switch from collapsed $6.50 NGAC market to APX-traded VERs at $8.75

Posted by gmarkets on 3 October, 2007

Australian Climate Exchange (ACX) Managing Director, Tim Hanlin has called upon troubled NSW carbon credit producer Easy Being Green to switch their focus from the oversupplied NGAC market to produce Greenhouse Friendly VERs, the rising star of the Australian Emissions trading scene.

Why VERs more attractive: “We have seen a steady rise in the price of VERs trading on the ACX since we launched in July while the price of NGACs (mainly traded off market) had fallen by half,” Hanlin said. When asked to explain the contrasting performance of the two instruments Hanlin made a couple of observations. “The fact that the VER is accredited by a federal government agency under one of the most rigorous measurement and verification protocols and the certainty that we will have a national trading scheme sometime in the next 4 years has made it the instrument of choice for most corporate buyers.”

Supply and demand: “There is currently a limited supply for this product and we are already seeing signs that demand will outpace supply in the foreseeable future …We are actively encouraging potential suppliers to bring abatement projects market to meet this demand,” said Manus Higgins, ACX’s Technology and Offset Supply Manager.

Gilding gone AWOL: “We made several attempts last week to contact Easy Being Green to redirect their workforce to produce Greenhouse Friendly VERs, but their focus seemed to be on trying to get the NSW Government to increase the compliance hurdles for the NGAC market,” said Higgins. Asked why Easy Being Green have not switched to producing VERs, Hanlin replied, “You would have to ask Paul [Gilding, CEO] that question but I suspect that it is the more stringent verification process associated with the AGO product that is putting them off.”

25/9/2007

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