Environmental Markets

Barclays Capital is a leading provider of financial and commodity risk management solutions to industry, funds and investors. Barclays Capital has quickly established itself as an award-winning liquidity provider in the environmental markets by applying our banking experience in the following areas:

• Market access and intermediation: the provision of a 'route to market' for participants looking to buy and sell allowances and project credits in the following key schemes:

- EU Emissions Trading Scheme (ETS)
- Clean Development Mechanism (CDM)
- Joint implementation (JI)
- Regional Greenhouse Gas Initiative (RGGI)
- California Emissions Trading System (AB-32)

• Risk management and structuring: the development of trading strategies and risk management products enabling market participants to manage the volume and price risks associated with their emissions portfolios

• Investor solutions: Barclays Capital launched some of the first investment vehicles to meet the needs  of investors' growing appetite for exposure to GHG prices. In December 2007, Barclays Capital  launched the BGCI, the first global carbon index of its kind, giving investors access to the global carbon markets.

As a leading provider of financial and commodity risk management solutions to industry, funds and investors, Barclays Capital has been ideally placed to help clients to understand and manage their carbon risk exposure through our extensive product range:

EUAs:
• Spot trades
• OTC contracts for delivery in December of each year of phase 2
• Financial swaps against market indices allow access to price exposure without delivery
• Options

CERs and ERUs:
• Spot trades
• Secondary market in guaranteed/firm CERs and ERUs
• Financial swaps against market indices allow access to price exposure without delivery
• Options

CER-EUA swaps:
• Bespoke swap products that allow clients to monetise their CER limits while maintaining their compliance positions.

CCAs:
• Physical OTC forward contracts for delivery in December of each year through Compliance Period 1.

Our Record so Far:
• Largest liquidity provider in the carbon market.
• Traded over 6.5 billion tonnes of carbon credits, with a total notional value of approximately €80 billion.
• Standardised the secondary CER market with the launch of the “Standard CER Forward Agreement”.
• Transacted the first trade in California Carbon Allowances and standardised the CCA market with the  launch of the 'California Carbon Allowance Forward Trade Agreement.
• Access to a large network of clients across all industries within Europe, North America, and beyond.
• Launched the first global carbon index (BGCI).