We provide highly informed, independent advice on the structural fundamentals, and short, medium and long term supply and demand dynamics.
Before transacting in the markets, we know there are several factors you need to consider. We can help you work through the supply and demand dynamics of the market, the risks and opportunities. We want to ensure you maximise returns from any trades you make.
We can tell you the things you must know and assist in tailoring a market solution to meet your needs.
Before you can plan a strategy, you need to have the best information, including future supply and demand estimates and a robust future price forecast. If you don’t know the forward price, you are only hoping your strategy is right.
With experience on both sides of the carbon market, we can provide procurement strategy advice to compliance and voluntary buyers of domestic Australian Carbon Credit Units (ACCUs) and international carbon units. We can create for you:
- High-level or detailed procurement strategies that identify key ACCU supply sources including through the spot market, long-term Offset Purchase Agreements (OPAs), Emission Reduction Fund contracts and derivatives.
- A tailored methodology review reports to analyse potential volumes and issues and risks of each methodology under the Emission Reduction Fund. We want to ensure your organisation has enough information to answer threshold questions, increase internal buy-in and appropriately design a procurement strategy.
- Detailed analysis of the Marginal Abatement Cost Curve (MACC) and Long Run Marginal Costs (LRMC) of abatement under all methodologies in Australia and overseas to assist in planning future procurement.
Since the introduction of Carbon Pricing Mechanism in 2011, the project originator (developer) industry has been evolving in Australia. As in any regulated market, there is a normal level of variation in counterparty, project, and methodology risk. Not to mention the ongoing and ever-changing political and regulatory risk.
We can analyse your carbon market risk and design and implement risk mitigation strategies across the counterparty, regulatory and financial sectors. In many cases, the risks of any strategy may not be entirely self-evident, requiring an independent, informed advisor to ensure risks are identified and managed.
Counterparty risk and due diligence associated with mergers and acquisitions in the sector require a specialist carbon due diligence advisor. We can provide advice on counterparty negotiations and undertake due diligence on acquisitions.
We are one of the only truly independent carbon market advisors that can provide expert advice on the risk inherent to any counterparty or carbon market participant.
Any entity with exposure to either the supply or demand side of environmental markets will benefit from having a well-structured and governed trading strategy to ensure transactions are correctly risk assessed and valued. We can assist in developing your trading strategy to enable the highest level of value extraction.
We are based in Canberra, and that means we keep a close eye on the developments with all environmental policy and regulations. We have strong working relationships across the federal government and can assist you in interactions with the:
- Clean Energy Regulator
- Australian Renewable Energy Agency
- Departments of Environment and Energy,
- Department of Industry, Innovation and Science
- Department of Infrastructure, Transport, Cities and Regional Development,
- Department of Agriculture and
- Department of Foreign Affairs & Trade.
We also work closely with a range of State Government Departments and can help you to navigate government interactions, processes and procedures.