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Author: Faye Kilburn Source: Inside Market Data | 13 Jun 2013 European carbon market research and data vendor Carbon Market Data has added new data covering carbon emissions reduction projects to its European Union Emissions Trading System (EU ETS) database, to provide carbon traders, brokers and research functions within financial institutions with more granular information on the carbon emissions of countries in Europe. The EU ETS scheme , which is designed to tackle climate change, requires organizations that consume commodities , such as factories, power stations and energy providers, and other carbon-emitting industries such as pharmaceuticals, airlines, food and drinks manufacturers and hospitals — all of which are allocated carbon allowances each year — to monitor and report their CO2 emissions and return leftover emission allowances to their governments. Carbon Market Data aggregates all information generated by the scheme and published by the EU — including CO2 verified emissions and distributed allowances for each company — into a single database. In recent weeks, the vendor has updated the information it holds on emission-reduction projects developed under the United Nations Framework Convention on Climate Change, which operates in tandem with the EU ETS to reflective the most recent data issued by the UN. This information includes details of the type of projects being operated-for example, whether the project is a Joint Implementation (JI) between industrialized countries or a Clean Development Mechanism (CDM) project, which focuses on sustainable development in emerging economies; the country of origin of the project; the greenhouse gas reductions the project delivers, as well as data on the number of carbon credits or offsets issued to the countries involved by the UN in return for a reduction of atmospheric carbon emissions through the project. “The United Nations initiative collects data on new emission projects being developed by companies around the globe and publishes information, which we have added to the database,” says Cédric Bleuez, managing director at Carbon Market Data. Core users of this information are carbon traders and brokers who want more information about the sustainability profile of a company they are looking to invest in. Earlier this month, Carbon Market Data published emissions rankings of companies involved in the EU ETS scheme, and an accompanying report, following the release of verified emissions reports by the EU at the beginning of April. German electric utilities company RWE, Swedish power company Vattenfall and electric utility service provider E.ON were the three biggest CO2 emitters of the EU ETS scheme during 2012. “We found that the companies with the biggest capitalization are usually biggest emitters… and usually those having the biggest surplus of carbon allowances are steel makers and producers, while those with the biggest shortage of allowances are power producers,” Bleuez says. This data allows fund managers, carbon traders and brokers, analysts and M&A advisors to assess the business risks and opportunities associated with investing in a particular company, and to manage their exposure to carbon risk. The rankings and analysis are free to download in PDF format from Carbon Market Data’s website , and may be of interest to research professionals and analysts trying to understand the how companies’ shortage and surplus of carbon credits impact the price of carbon and stocks in the market, he adds. Continue reading →