Sunday, September 9, 2007

EcoSecurities carbon credit portfolio grows

From Reuters:
Britain's EcoSecurities Plc (ECO.L: Quote, Profile, Research), a major seller of carbon offsets, expects to make net profits of 191 million euros ($261.5 million) by 2012 on sales it has already agreed.

EcoSecurities is an intermediary in a growing carbon market whereby rich countries meet domestic emissions goals agreed under the Kyoto Protocol by buying carbon offsets from developing nations.

The loss-making company, which has 130 million euros in the bank after recently selling a 10 percent stake to Credit Suisse (CSGN.VX: Quote, Profile, Research) for 44 million euros, posted half-year results on Friday which showed its portfolio of carbon credits growing in line with analysts expectations.

At the moment, the expected profits are just on paper despite its 332 million pounds ($671 million) market size.

The profits will not hit its bank account for some time because the figures are based on what EcoSecurities expects to receive when its projects to reduce greenhouse gas emissions actually start working.

These projects cut emissions of planet-warming gases, for example of methane from rotting rubbish dumps, or of carbon dioxide by making industrial processes more efficient.

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