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CO2 Risk Tool May Spur UN Carbon Trade, IDEAcarbon (Correct)
2010-10-15 10:41:13.138 GMT
(Company corrects Stern's role in first paragraph.)
By Catherine Airlie
Oct. 15 (Bloomberg) -- IDEAglobal, a research company
advised by economist Nicholas Stern, has started selling
software that predicts prices of United Nations carbon credits
and may spur trading and investment in emissions reduction.
The Carbon Rating Agency, part of the company's IDEAcarbon
unit, said its CARBONrisk software helps bring financial risk
management tools to the carbon market, according to an e-mailed
statement today. The software predicts supply and future prices
of credits by analyzing the likelihood that emissions reduction
projects will be awarded with tradable credits.
"The carbon markets significantly lag the established
financial markets in their ability to generate and deploy the
funding deemed necessary to address the effects of climate
change," IDEAcarbon Chairman Ian Johnson said in the statement.
Tradable UN carbon credits are awarded under the UN's Clean
Development Mechanism to projects in developing nations that
reduce the release of greenhouse gases into the atmosphere.
There has been a "general lack of liquidity," IDEAcarbon
said. The software will help to manage "delivery risk" of
carbon credits to forecast a price and help attract investment
into CDM projects, according to the statement.
UN emission credits for delivery in December lost 0.9
percent to 13.70 euros ($19.26) a metric ton on the European
Climate Exchange in London. About 1 tons of December credits
were traded yesterday on the exchange. That's about 13 percent
of trading in the equivalent European Union carbon permits.
For Related News and Information:
UN emissions-trading stories TNI ECREDITS UN <GO>
Today's top environment news GREEN <GO>
Energy markets menu NRG <GO>
--Editors: John Buckley, Randall Hackley
To contact the reporter on this story:
Catherine Airlie at +44-20-7073-3308 or
cairlie@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
