All environmental markets, including carbon emissions trading schemes, go through predictable phases of development, which can present extraordinary opportunities but may also take some market participants by surprise. To take advantage of regulatory market developments requires strategic intelligence and sophisticated risk management tools. ROI has the deep and longstanding experience needed to advise fund managers or to build a portfolio of carbon assets and supply the needed risk management tools to properly manage such assets. Funds may hold allowances (permits) and/or carbon offset projects and related market assets (energy, transport etc).
Alternately compliance entities may wish to diversify their offset risk. A buyers' pool may be set up by ROI which would have a diversity of offset projects supplying credits on a forward basis. This portfolio may include a diversity of projects of different carbon emission protocols, some all ready approved by the regulatory entity or at a more preliminary stage, for example registered on one of the voluntary registries, but expected to be a compliance offset. A buyers' pool allows compliance entities to diversify risk while having opportunity to purchase a larger amount of offsets on a forward contract. Overhead costs are shared among the buyers, reducing costs.
ROI has managed buyers' pool with many clients and great success. We have also developed the tools to manage the risk of carrying a diverse portfolio of offset projects while managing the risks. We can manage all aspects of the acquisition process including negotiation of emission purchase agreements and hedging the portfolio as needed.