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Profit. Tomorrow.

Eco Global Market Brochure

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Page 1: Eco Global Market Brochure

Profit.Tomorrow.

Page 2: Eco Global Market Brochure

Eco Global Markets focuses on originating, developing and trading carbon credits generated from projects that directly mitigate climate change.

We work with companies from developing countries across the globe to create carbon credits in a wide variety of sectors.

Eco Global Markets also work with companies in the developed world to assist them in meeting their greenhouse gas emission compliance targets.

Page 3: Eco Global Market Brochure

about the future.

The carbon industry is expected to be one of the world’s biggest traded commodities markets in the next 10 – 20 years, if not the biggest and the carbon boom, or dot.com equivalent is still to come.

In order to preserve a high probability of keeping global temperature increase below 2 degrees centigrade, current climate science suggests that atmospheric CO2 concentrations need to peak below 450ppm. We are currently at 395ppm and rising faster than at any time in the past 400,000 years, at a rate of 2ppm each year.

This requires global emissions to peak in the next decade and decline to roughly 80% below 1990 levels by the year 2050 (Baer and Mastrandrea, 2006). Such dramatic emissions reductions require a sharp move away from fossil fuels, significant improvements in energy efficiency and substantial reorganisation of our current economic system. The transition to carbon offsetting is an increasingly popular means of taking action. By paying someone else to reduce GHG emissions, the purchaser of a carbon offset aims to compensate for – or “offset” – their own emissions.

Emission markets worldwide will expand to 107 billion euros ($139 billion) this year from 93 billion euros last year as European power producers buy more permits before they are forced to pay at auctions starting in 2013. “In spite of the recession and little progress at the international climate

talks, the value of the global carbon market has continued to grow,” Guy Turner, director of carbon market research at New Energy Finance, said in the report. “With the advent of auctioning in the European scheme, we are likely to see even higher traded volumes and prices in Europe in 2011,”

Page 4: Eco Global Market Brochure

“Carbon could become one of the fastest growing markets ever, with volumes comparable to credit derivatives inside of a decade”

Chris Leeds, Head of Emissions Trading, Merrill Lynch

Page 5: Eco Global Market Brochure

to meet legislationCarbon Credits are key components in the global aim to reduce Greenhouse Gases. One Carbon Credit is equal to the offset of one metric tonne of Carbon Dioxide and the aim by 2012 is to globally reduce emissions by 5% from 1990 levels. This creates an excellent opportunity for investors to take advantage of an emerging market.

Without change, emission levels will continue to rise, thus forcing major polluters to purchase more Carbon Credits. The simple rule of supply and demand will dictate that the market price of Carbon Credits will rise.

Renewable Energy Projects

Customer Traded on EU ETS

• Wind Power• Hydro Power• Solar Power

• Biomass• Methane avoidance

and capture

CREDIT1

“Carbon could become one of the fastest growing markets ever, with volumes comparable to credit derivatives inside of a decade”

Page 6: Eco Global Market Brochure

The European Union Emissions Trading Scheme (EU ETS) also known as the European Union Emissions Trading System, was the first large emissions trading scheme in the world. It was launched in 2005 and is a major pillar of EU climate policy.

Under the EU ETS, large emitters of carbon dioxide within the EU must monitor their CO2 emissions, and annually report them, as they are obliged every year to return an amount of emission allowances to the government that is equivalent to their CO2 emissions in that year.

Page 7: Eco Global Market Brochure

to meet the targets• privately moving allowances between operators within a company and across national borders

·• over the counter (OTC), using a broker to privately match buyers and sellers

• trading on the spot market of one of Europe’s climate exchanges.

The 1st EU ETS Trading Period expired in December 2007; it had covered all EU ETS emissions since January 2005. Since January 2008, the 2nd Trading Period is under way which will last until December 2012. Currently, the installations get their trading credits from the NAPs (national allocation plans) which is part of each country’s government. Besides receiving this initial allocation, an operator may purchase EU and international trading credits. If an installation has performed well at reducing its carbon emissions then it has the opportunity to sell its credits and make a profit.

In January 2008, the European Commission proposed a number of changes to the scheme, including centralised allocation (no more national allocation plans) by an EU authority, a turn to auctioning permits rather than allocating freely, and inclusion of other greenhouse gases, such as nitrous oxide and perfluorocarbons. The mentioned amendments are to become effective from January 2013 onwards, i.e. in the 3rd Trading Period under the EU ETS. The EU ETS has recently been extended to the aviation sector as well, but this change will not take place until 2012.

The operators within the ETS may re-assign or trade their allowances by several means:

Page 8: Eco Global Market Brochure

it makes you

Like any other financial instrument, trading consists of matching buyers and sellers between members of the exchange. Much like the stock market, companies and private individuals can trade through brokers who are listed on the exchange, and need not be regulated operators.

Like the Kyoto trading scheme, the EU scheme allows a regulated operator to use carbon credits in the form of Emission Reduction Units (ERU) to comply with its obligations. A Kyoto Certified Emission Reduction unit (CER), produced by a carbon project that has been certified by the UNFCCC’s Clean Development Mechanism Executive Board, are accepted by the EU as equivalent.

• inclusion of Aviation and Shipping Sectors• emission reduction targets quadruple• removal of Allowances• CER supply reduced by 77% as industrial gas credits become obsolete.

Phase Three Key Changes:

Page 9: Eco Global Market Brochure

0

40

80

100

120

2012

2005 2007 20092006 2008 2010 2011

138%

67%

80%5% 5%

15%

28

47

85 8993

107

60

Projected carbon market size 2005 - 2011 (EURbn)

Source: Trading figures taken from Bloomberg, ECX, Bluenext, EEX, CCX, Nordpool. Other sources include UNFCCC and Bloomberg New Energy Finance estimations

Page 10: Eco Global Market Brochure

The carbon market’s value rose in 2010 as global prices

increased 17% (New Energy Finance)

The world’s carbon markets

could reach

1.7trillion euros in 2020

Page 11: Eco Global Market Brochure

differently

“The EU CO2 price should be more than 3 times higher. By 2020 prices will needto rise to 60-90 euros”

Bloomberg New Energy Finance

Page 12: Eco Global Market Brochure

call us today to find out more

or visit our website

www.ecoglobalmarkets.com

+44 20 3514 0500

Heron Tower, 110 Bishopsgate London EC2N 4AY

facebook.com/ecoglobalmarkets

twitter.com/ecoglobalmarket

linkedin.com/company/eco-global-markets

Brochure DisclaimerEco Global Markets Ltd (EGM) is not regulated in the UK by the Financial Services Authority nor any other regulatory authority. You should seek independent financial and/or tax advice on all information included in this document prior to making any investment decision. EGM only pro-motes investments in the UK which fall outside of the definition of specified investments under the Financial Services and Markets Act 2000

(FSMA), or fall within applicable exemptions to FSMA. Accordingly, EGM is not required to be regulated by the FSA and is not authorised to offer advice to the general public concerning any regu-

lated or unregulated investment. This means, among other things, that a person buying carbon credits from Eco Global Markets will not benefit from any protections afforded by the FSA and does not have access to the Financial Services Ombudsman or the Financial Services Compensa-

tion Scheme.The content of this document is provided for information purposes only. The content of this document must not be construed as an offer, recom-mendation or solicitation to sell or purchase any investment or an official confirmation of terms of any transaction. It does not form part of any

contract for the sale or purchase of any investment. All forecasts are based on historical performance and are purely indicative. The value of your investment may rise or fall. No guarantees as to future performance in respect of income or capital growth are given either expressly or by implication and nothing expressed or implied should

be taken as a forecast of future performance.