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Don House, 30 38 Main Street, Gibraltar. Registered Number: 105368. Tel: +44 (0) 203 137 4400 www.barontraders.


Baron Traders Limited

What is a CER?
Certified Emission Reduction Credit Each CER represents the abatement of one tonne of carbon dioxide equivalent.

How do CERs Work?

CERs are only issued by the Clean Development Mechanism (CDM) Executive Board once estimated abatement volumes have been validated independently.

How do CERs Work?

CERs are used by companies, within industrialised nations (Annex 1 countries) to meet within their emission limitation targets set by the European Union Emissions Trading Scheme (EU ETS).

Reasons to Invest in CERs

Safe Tight Spreads Liquid Profitable
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Safety behind Investment

All clients credits held on DEFRA (Department for Environment, Food and Rural Affairs) account. DEFRA now operates under the European Commission. Investors can have personal DEFRA account.

Tight Spreads
Operating through a network of counterparties allows us to gain the best market prices for our clients. Volume dependant, usual entry routes are both DMA (through counterparties) and OTC, with OTC usually the preferred route on lower volumes.

Market Liquidity
CER market worth $125 billion year end 2011, forecast to increase to $175 billion year end 2012. Emissions are exchange traded meaning we are able to exit clients positions, through DMA, whenever they wish.

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CER Price Estimates

2013 ()

Phase3 ()

Barclays Capital Nomisma Energia Point Carbon 70 Watt

14.00 13.00 13.50 13.00

17.00 17.40 16.50 16.00

Schwartshal Kapital SocGen / Orbeo

20.00 17.00

22.00 25.10

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Projected Supply and Demand Movements 2012 2013

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Simple entrance to market. We find the best market price, OTC or DMA. We arrange for a credit line to be opened and the CERs are purchased on behalf of the client. Client settles credit line to Lloyds corporate account within 3-5 days. Investor receives trade certificates and holding registry details with DEFRA & European Commission.

Holding Period

Recommended hold period 12-18 months. Clients CERs held on DEFRA account As much contact with trade desk as required. Regular price updates and newsletters.
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Pre-determined Exit Strategies

No minimum holding period or time frame. Liquid market means clients can exit at any time. One simple call and we can arrange execution and completion of your holding. Exit through; DMA, OTC to counterparties e.g., public and private utilities, oil companies, investment banks, government programmes and institutional and private hedge funds.

CER Cycle

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Why Invest in Liquid CERs

Due to the low-risk involved with issued CERs, issued CERs command a premium to forward streams of CERs, which have yet to be generated and as such carry more risk. Source: Tradition

Risks CERs Lower Risk

No non-accreditation risk Liquid Investor decides investment period No time delay risk

Renewable Energy Project Higher Risk

Non-accreditation risk Illiquid Developer decides investment period Time delay risk

What others say about CERs

Carbon could become one of the fastest growing markets ever, with volumes comparable to credit derivatives inside of a decade Source: Chris Leeds, Merrill Lynch. JPMorgan isnt alone. All the big global investment banks including Barclays, Citigroup, Goldman Sachs and Merrill Lynch are hurrying into carbon finance Source: Fortune. Carbon trading may dwarf that of crude oil within 5 years, worth 2 trillion Bart Chilton, Source: CFTC Commissioner.
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Example Investment
Investment Level: 25,000 Time Frame: 18 months. Projected profit: 15% per annum ROI: 5,625 (minus 5% performance fee) ROI: 5,343.75 Total Return: 30,343.75

Risk Warning Please note that carbon credits are not regulated by the FSA or the FSC and that Baron Traders is therefore not required to be regulated and does not give financial advice. Carbon credits are spot trades and their value can go down as well as up. You should consider carefully before purchasing emission reductions for the purposes of investment and if you are uncertain it is recommended that you seek professional financial advice. Baron Traders Limited is a Gibraltar registered company, Number 105368. Registered Office: Don House, 30 38 Main Street, Gibraltar. Baron Traders is VeriSign Trusted Norton Secure. The identity of BARON TRADERS has been confirmed using official records.

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