News
EDF Trading and AgCert International conclude a major Certified Emission Reduction purchase agreement
AgCert will provide Emission Credits to EDF Trading
London, England/Dublin, Ireland – 31 March 2005
EDF Trading (EDFT), one of the leading European traders of electricity, natural gas, coal and other commodities has signed an agreement with AgCert International Limited, a global leader in greenhouse gas emission reductions (ERs), to purchase Certified Emission Reductions (CERs). The CERs will be delivered over a two year period that begins in 2006.
EDFT actively manages a large portfolio of direct and indirect CO2 positions stemming from the optimisation of the EDF-Group thermal generation plants, assistance to EDF traditional commodity customers to comply with emission reduction requirements as well as the CO2 exposure embedded in EDFT proprietary power trading activity.
“This transaction will further consolidate EDFT’s position as a major participant in the emerging CO2 trading market,” said Francois Joubert, General Manager EDF Trading. “This purchase is an excellent fit with our current portfolio. AgCert’s quality business together with the professionalism of its team provides us with a solid and convincing value proposal in a market where credit worthiness is paramount.”
“We continue to see the value that the market places in combining the traditional energy commodities with emissions reductions,” said Al Tank, Managing Director and CEO of AgCert International Limited. “We are proud that EDF recognises AgCert as such a strong partner in the CER market."
AgCert’s core business is in the manufacturing of greenhouse gas emission reductions from farm systems worldwide. AgCert works with farms to modify animal waste management practices in order to reduce their greenhouse gas emissions. AgCert is currently working with farms in Brazil and Mexico to supply EDFT. AgCert is qualifying its emission reductions as CERs under the Kyoto Protocol for trading in the EU Emission Trading Scheme (ETS) and in other countries which are participants in the Kyoto Protocol.
The European Union has passed legislation mandating reductions in greenhouse gas emissions. Under the EU ETS, industrial companies producing emissions in excess of their allocated allowances will need to purchase emissions offsets or face fines of €40 per excess tonne of C02 committed, rising to €100 per ton on 1 January 2008. The purchase of CERs provides a cost
efficient way for such companies to comply with their emission obligations.
About EDF Trading AgCert International Ltd. For further information please visit www.agcert.com. ###
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