World Bank Blocks Recast of Trading Emissions Contracts - Bloomberg
The World Bank declined requests by Trading Emissions Plc to renegotiate carbon credit-purchase agreements between the bank’s climate funds and emerging-nation suppliers, according to Simon Shaw, adviser to the company. The bank’s stance is preventing Trading Emissions from recasting contracts that require the London investor in greenhouse gas reductions to buy so-called offset credits at prices that are about 53 percent above the current market levels, Shaw said. “So far, they’ve refused” to enter renegotiations, Shaw said today in a phone interview. Trading Emissions said in March it has an outstanding bank guarantee to the World Bank for 20.8 million euros ($26 million) for industrial-gas emission credits it is obliged to buy through the bank-managed Umbrella Carbon Facility through 2014. Its average contracted price for future deliveries of credits is 6.29 euros a metric ton, compared with today’s December contract level of 4.12 euros.
Thursday, July 5, 2012
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