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Perenia signs Australia’s first International AAU carbon trade with Carbon Conscious Ltd
Perenia signs Australia’s first International AAU carbon trade with Carbon Conscious Ltd
Perenia Pty Ltd has contracted market leading carbon forest sink developer Carbon Conscious Ltd to supply 10,000 future internationally exportable Australian Government backed Assigned Amount Units (AAU’s), in an Australian first.
The deal involves Carbon Conscious planting approximately 50,000- 70,000 mallee eucalypt trees on marginal Western Australian farm land and delivering AAU’s to Perenia, in line with tree growth, under the Australian Governments Carbon Farming Initiative.
The parties agreed on a delivery price from AU$16 per unit.
Carbon Conscious CEO Peter Balsarini said “we are pleased to be undertaking this important first transaction ahead of what we consider to be a large potential market for Carbon Conscious and other Australian carbon forest sink companies that will follow. We are also pleased to be working with leading carbon originator Perenia and believe there are strong synergies and future opportunities for our companies to explore.”
Perenia is a complete carbon solution provider owed by Mitsui & Co. Ltd, Pacific Hydro and SMEC. Mitsui and Co Ltd is one of Japan's leading trading houses with total revenues of US$59 billion and total assets of US$106 billion in FY 2008. Pacific Hydro are Australia’s premier renewable energy company and one of the largest independent, specialist renewable energy businesses in the world. SMEC, or Snowy Mountains Engineering Corporation, one of the world’s leading engineering and development consultancies with over 4,000 employees and operations throughout Australia, Asia, Middle East and Africa.
Perenia CEO David Tow said “This pioneering deal supplements Perenia’s focus on further building its quality portfolio of carbon origination projects throughout the Asia Pacific region. Australia offers substantial opportunity for large scale environmental forestry projects due the countries land mass, stable Government and property laws, providing for diversification within Perenia’s current portfolio of projects under the Clean Development Mechanism (CDM). We are encouraged by the Australian Governments ongoing commitment to programs such as their Carbon Farming Initiative, which could lead Australia’s engagement with existing international carbon trading markets and look forward to working further with Carbon Conscious Ltd”
The Federal Government’s Carbon Farming Initiative opens up large international markets for Australian forestry companies that will supplement the chosen domestic mechanism for pricing Australian emissions. Forestry projects are expected to lead the international Australian AAU market due to strong and well defined systems for measuring and verifying carbon forest sink plantations in Australia.
Australia’s first forestry backed AAU deal follows pioneering and unmatched deals announced by Carbon Conscious in 2009 with Origin Energy and BP Singapore worth up to $169 million and $2.5 million respectively designed for the planned Rudd Government’s Carbon Pollution Reduction Scheme or CPRS.
Trees will be established in a permanent manner, will store carbon over a 30 year period and will be maintained by Carbon Conscious Ltd through their Carbon Capture ProgramTM.
Mallee eucalypt trees are native to Australia, help reduce salinity and wind erosion on farms whilst contributing to the fight against climate change. Importantly, trees established by Carbon Conscious Ltd are not competing with food production as they are established in areas deemed marginal for agriculture due to location, soil type and other key factors.
For further information please contact;
Peter Balsarini – (JavaScript must be enabled to view this email address)
David Tow – (JavaScript must be enabled to view this email address)
