World Energy Carbon Market Auction
Published December 5th, 2008
World Energy Solutions, Inc., an operator of online exchanges for energy and green commodities, has announced NativeEnergy has contracted for 145,000 verified emission reductions (VERs) with two suppliers via the World Green Exchange. NativeEnergy, an international marketer of high-quality carbon offsets, turned to the World Green Exchange as a new channel to meet increasing customer demand for offsets.
Recent successes with the Regional Greenhouse Gas Initiative (RGGI), European certified emissions reduction (CER) market, Alberta carbon-offsets market and, now, U.S. voluntary market – the NativeEnergy transaction is one of the largest VER auctions ever conducted – signal World Energy’s emergence as a major player in primary carbon markets. Today’s news also highlights growing demand for auctions as a competitive alternative to traditional bid-ask exchanges.
Making Carbon Markets More Transparent
World Energy’s strategy differs fundamentally from the leading bid-ask exchanges. The World Green Exchange delivers transparency, so buyers know what they are getting, and disaggregation, so sellers can offer projects on a standalone basis – not as a blend – driving a market price commensurate with actual merit.
“Typically, our greatest challenge is finding VER suppliers who meet our extremely stringent additionality standards, which are shared by our clients and partners,” said Tom Boucher, President and CEO, NativeEnergy. “Not only did World Energy bring together several high-quality suppliers, they were also able to provide a clear window into project characteristics. We’re glad we used the World Green Exchange and are impressed with the results.”
“Working with World Energy was a valuable experience for us,” said Peter H. Zeliff, President and CEO of Innovative Energy Systems, Inc. “Our carbon offsets were purchased under a higher standard, pending verification, than offered by CCX which resulted in a better price. Also, World Energy’s process gave us the flexibility to bid on scenarios we felt were most compatible with our business objectives. In the end, our bottom line was rewarded.”
Concluded Phil Adams, President and COO, World Energy: “The NativeEnergy transaction is another landmark auction for World Energy and signals increasing market acceptance of auctions in carbon trading. Auctions are a great mechanism to allow the market to reward project quality. Had these been transacted on a bid-ask exchange, the VERs would have likely yielded a lower price, which does a disservice to suppliers whose projects show clear additionality, proof that they really reduce carbon emissions.”
About NativeEnergy
NativeEnergy leverages market demand for carbon offsets to bring on line new Native American, family farmer and community-owned renewable energy projects. NativeEnergy offers third party verified and certified renewable energy credits and offsets from a variety of operating projects across America and internationally. Through its novel approach of bringing upfront payment to renewable projects for the estimated future carbon offsets, NativeEnergy enables its clients to help directly finance the construction of specific new wind farms and other renewable energy projects. NativeEnergy continues to focus on real, additional offsets that provide both an environmental and a social benefit, for both people and planet. More information is available at www.nativeenergy.com.
About World Energy Solutions, Inc.
World Energy (TSX: XWE) operates online exchanges for energy and green commodities. For buyers and sellers of electricity, natural gas, capacity, and green-energy assets who are impacted by today’s volatile markets, World Energy’s proven approach has transformed the normally complex procurement process into a powerful, streamlined vehicle for cost savings. In addition to enabling customers to seek competitive pricing on traditional energy commodities, World Energy is taking a leadership position in the emerging environmental-commodities markets. To date, the company has transacted nearly one billion kWh of green power and Renewable Energy Certificates (RECs) as well as a variety of mandatory and voluntary carbon credits. Its award-winning World Green Exchange(R) powers the ground-breaking Regional Greenhouse Gas Initiative’s (RGGI) cap and trade program for CO2 emissions. For more information, please visit www.worldenergy.com.
