RepoRt on - BNP Paribas

nP Paribas is highly active in emissions
trading markets and has a substantial
portfolio of carbon credits from clean
development mechanism projects with
high environmental value, making the
group well-positioned to offer intermediation
services to clients subject to co 2
emission limits. these services include
placing buy and sell orders for carbon
credits, guaranteeing delivery of carbon
credits, and developing derivativesbased
hedging solutions.
main projects financed in 2009
in 2009, bnP Paribas’ carbon finance
team again stood out in the market as
an arranger of finance for projects that
reduce co 2 emissions. in the province
of Heilonqjiang, in northeast china,
bnP Paribas worked alongside jixi coal
mine methane to finance a project to
build 13 power plants with total capacity
of 78 mw, which burn methane from
the jixi coal mine. bnP Paribas is managing
the sale of carbon credits from
the project.
in russia, bnP Paribas and russian oil
company tnK-bP have entered into
two agreements. the first consists of
collecting flare gas at the samotlor
gasfield in siberia, generating almost
a million carbon credits. these carbon
credits made it possible to finance the
transaction, illustrating the new investment
opportunities arising from these
mechanisms introduced following the
Kyoto Protocol. the second agreement
between tnK-bP and bnP Paribas consisted
of two energy production projects
that reduce related co 2 emissions.
these projects are being implemented
in 2010, and will substantially reduce
emissions volumes.
these projects show bnP Paribas’ expertise
in transactions based on Kyoto
Protocol mechanisms. in 2009, for the
second consecutive year, the group was
named as the best trading company for
cdm Projects by Environmental Finance
magazine.
as regards carbon credit transactions,
bnP Paribas continued to provide its
services to european industrial clients
in 2009. these services enabled clients
to hedge market price risk when
implementing emissions reduction
strategies.
bnP Paribas also extended its operations
in the usa, where the market is in
its infancy but where transactions may
be carried out from 2012 onwards. there
is major demand among us industrial
companies for hedging future risks resulting
from exposure to a national quota
system.
81 <strong>RepoRt</strong> on CoRpoRate SoCial and enviRonmental ReSponSibility
bnp paribas:
one of the world’s
top 100 companies
based on
environmental
criteria according
to ftse4good
in 2009, bnp paribas remained
a constituent of the ftse4good global
100 index. this index is comprised
of the world’s leading companies in
terms of environmental management,
based on a rating of their
environmental commitments.
the european investment bank (eib)
and the international banking
community have adopted this index,
which provides investors
with information on the environmental
responsibility of the main
european issuers.