Carbon Capital Markets, set up by three senior players in the carbon markets – Lionel Fretz, former founder and Executive Director at Climate Change Capital and Ecosecurities, Reuben Maltby, previously of, and John O’Brien former Managing Director of Carbon market Solutions and principal consultant of Enviros Consulting – is backed by Trading Emissions plc, the world’s largest private sector investor in emissions trading, and Grupo HLC, a diversified Portuguese industrial company.

Lionel Fretz explained to edie news that they were still looking at large energy users, such as brick, cement or glass manufacturers, but specifically not the power sector.

“We’re talking about companies who are big enough to have obligations under the EU ETS and who are listed on the national registry, but who probably don’t employ their own person at a desk monitoring the situation constantly,” he said.

The price of carbon has been extremely volatile since the start of the EU ETS in January, increasing from €6 – 7 tonne to around €18 now making emissions trading a far more material issue for companies.

“As the value of carbon changes so does the risk associated with it and companies affected should act now to prepare for compliance,” Fretz said. “We know that many companies do not understand what their position is likely to be, and in talking to us they may even realise they’ll have a surplus from which they can profit.”

Companies who fail to surrender a number of allowances equal to the amount of CO2 emitted will face a fine of €40 per tonne in the first phase of the scheme (2005 – 2007) rising to €100 per tonne in the second phase from 2008 to 2012.

Carbon Capital Markets has launched in London and intends to expand throughout Europe during 2005, focusing on the key markets of Germany, Spain, Italy, France, Poland.

By David Hopkins

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