Carbon Farming Initiative

The Carbon Farming Initiative (CFI) is a carbon offsets scheme established by the Australian Government to provide access to voluntary and international carbon markets for farmers, forest growers and landholders while also helping the environment by reducing carbon pollution.

Credits created under the CFI are called Australian Carbon Credit Units (ACCUs).

Detailed methodologies under the scheme have been established and other new methodologies are under consideration.

Current ACCU prices can be viewed on our "Prices" page 

More information on the CFI see : http://www.climatechange.gov.au/cfi

In December 2012, ICAP executed the most significant ACCU transaction in this new market.

Read our Press Release.

ICAP Australia - Energy Desk

Executes Australian Carbon Credits Unit (ACCU) Trade

Sydney, December 2012- ICAP Australia Pty Ltd, a subsidiary of ICAP (IAP.L), the world’s leading interdealer broker, announces the execution of Australia’s largest Australian Carbon Credit Unit (ACCU) trade, by the Environmental Markets Desk, on behalf of Stanwell Corporation as the buyer.

The transaction provides Stanwell Corporation with a significant quantity of ACCU’s for variable settlement from now until May 2013. 

The seller, who wishes to remain anonymous, has gained the flexibility to deliver ACCUs as soon as they are created.  They have also gained the benefit of price certainty within the defined delivery window.

The total volume of ACCUs transacted by the seller is the largest volume available for compliance to the first year of the carbon tax.  The volume brokered by ICAP is also the largest volume of ACCUs transacted via a broker in the new Australian Carbon Farming Initiative market.

“This transaction demonstrates our capacity to arrange structured deals in an area where we have strong local expertise, supported by Global coverage in the developing Carbon market” said Brad Howell, CEO ICAP Australia

Scott Riethmuller, Manager Energy Trading, Stanwell Corporation said “This transaction helps us manage our cost of compliance to the carbon tax.  The transaction is evidence of Stanwell’s proactive approach to the carbon markets.  We continue to seek cost effective opportunities to manage our carbon exposure”

 Contacts:

Bard Howell                CEO – ICAP Australia                                                  02 9777 0861

Alison Buzza               Marketing &Communications, Asia Pacific             02 9777 0834                           

                                          

About ICAP:

ICAP is the world’s leading interdealer broker and provider of post trade risk and information services.  The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks.  Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios.  

For more information go to www.icap.com

 

News article from Reuters - Power generator announces Australia’s biggest CO2 offset deal

11 Dec 2012 10:46

BEIJING, Dec 11 (Reuters Point Carbon) - Queensland-based power generator Stanwell Corp. on Tuesday announced it has bought around 200,000 carbon credits under Australia’s Carbon Farming Initiative (CFI), the biggest deal announced under the scheme so far.

The offsets will be delivered by an undisclosed seller before May next year at a price of A$22.25-A$22.70 each depending on delivery dates, Scott Riethmuller, Stanwell’s energy trading manager told Reuters Point Carbon.

Riethmuller declined to specify the exact volume of the deal, which was brokered by ICAP, other than to say it was in the order of 200,000 offsets, which is the largest over-the-counter CFI deal that has been publicly announced.

The company, which emits 7-8 million tonnes of carbon dioxide per year, will use the offset to dampen the impact of Australia’s carbon pricing mechanism.

From July 1 this year, Australia’s 300 biggest emitters must pay A$23 per tonne of CO2 they emit, but may use CFI credits to cover up to five percent of their liability.

The limit on CFI credits will be lifted on July 1, 2015 when Australia will replace the fixed price with an emissions trading scheme.

Riethmuller said Stanwell would continue to seek new deals under the CFI, which allows emission cuts achieved in the forestry, agriculture or landfill sectors to generate offsets.

“We have been looking at other deals. After a slow start, there are now quite a few coming to market,” he said.

The Carbon Market Initiative was approved by parliament in 2011, and is still maturing.

So far, the government has approved 17 projects, and 350,000 offsets have been issued - all of them to landfill gas project developer LMS Energy.

But buying interest has been steadily growing since the first over-the-counter deal was announced in September.

“These early CFI trades demonstrate that the financial markets process of monetising carbon assets and liabilities is beginning to take effect,” said Gary Cox, the ICAP broker who facilitated Tuesday’s deal.

By Stian Reklev - stian.reklev@thomsonreuters.com