Banken for en verden i endring The bank for a ... - BNP Paribas

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Banken for en verden i endring The bank for a ... - BNP Paribas

• impact on the natural environment / three key success factors

BNP Paribas and the greenhouse gas

emissions market: the Carbon Team

The Kyoto protocol and the European directive

on CO 2 emission quotas trading have led to a

monetary value being placed on environmental

externalities. An emissions trading system set

up by European states in 2005, the European

Union Emissions Trading Scheme (EU-ETS),

should allow 12,000 industrial sites that emit

CO 2 to meet, at a minimum cost, the reduction

targets set by their governments.

The work of the Carbon Team is geared towards

including considerations related to greenhouse

gas emissions across all business lines. The

restrictions on CO 2 emissions resulting from

international agreements will have a long-term

influence on the structure of financed assets

and need to be taken into account in financing

decisions. The focus is not so much on creating

new products, but on taking into account,

in the services offered to clients, the financial

component of schemes to reduce green-house

gas emissions.

BNP Paribas offers a complete range of solutions for managing CO 2

risks to members of the CO 2 emission quotas trading system

Financial

Solutions

Pre-financing

Inventory monetisation

Route to market Risk

Management

EUAs (1)

CERs (1)

ERUs (1)

Carbon Assets

Forwards

Swaps

Options

Structure

Cross -

Commodity

Solutions

Power

Gas

Coal

The Carbon Team set up in 2006 initially includes

four persons, combining financial, technical

and envi-ronmental expertise. Its objective is to

develop carbon-related operations, by informing

clients and ena-bling them to seize opportunities

related to CO 2 emission quotas, in either trading

or financing.

BNP Paribas brings its asset financing and

management experience into play to help the

companies involved meet their reduction targets

as cost-effectively as possible. Although not

directly affected by the directive, BNP Paribas

has played an active role on this market since

March 2005.

(1) EUA: European Union Emission Allowance, granted to

entities participating in the European system for trading

emissions rights.

CER: Certified Emission Reduction. A credit equivalent

to one tonne of CO 2 reduction achieved through

the Joint Implementation Mechanism.

ERU: Emission Reduction Units.

115

BNP PARIBAS AND ITS STAKEHOLDERS

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