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Westpac completes deal with Perenia to acquire primary carbon credits
Westpac announced today the completion of a deal with Perenia whereby the bank will off take Primary Certified Emission Reductions (CERs) generated by a Clean Development Mechanism (CDM) registered hydro-electric project in northern India.
The CDM is a system under the Kyoto Protocol that enables emission reduction projects in the developing world to generate carbon credits or CERs that can then be sold to other parties to assist in meeting their carbon liability.
Director of Commodities, Carbon & Energy Mike McKensey said that the deal provides further evidence of Westpac’s commitment to developing a full suite of traded carbon products that businesses can use to efficiently manage their carbon position.
“Accessing CERs is likely to be an important part of managing a carbon liability in Australia,” Mike McKensey said. “For Westpac, it is important that we have the capability to provide customers with the full suite of carbon products. Accessing primary CERs is one of the more difficult but desirable carbon products that are part of our offering.”
Michael Wiener, Perenia’s Director of Operations, said that Perenia was pleased to be providing CERs from its portfolio of high quality emission reduction projects to an Australian counterparty, demonstrating the effectiveness of emissions trading.
“The revenue from the sale of the CERs has supported the development of the hydropower project in India, contributing to the environmental and social development of the region,” Michael Wiener said. “While the CERs provide a flexible, low risk and cost effective means for a business to manage its carbon liability.
“This is the first transaction that Perenia and Westpac have completed and we look forward to further developing that relationship as the carbon market in Australia matures,” Michael Wiener further commented.
Westpac has been trading carbon since 2006. The bank offers a full range of solutions across the Australian, European and New Zealand carbon markets. This includes spot, forward, derivative and structured contracts for Australian Emission Units, New Zealand Units, European Union Allowances, Certified Emission Reductions and Emission Reduction Units in a range of currencies.
Perenia is a complete carbon solutions provider owned by SMEC, Pacific Hydro and Mitsui & Co., Ltd. Perenia is a unique company in the Australian landscape combining strategic advisory services that assist companies identify their carbon risks and opportunities with a diverse portfolio of emission reduction projects throughout the developing world that provide a cost effective means for businesses to manage their carbon liability.
