issue 12.0, New Values Newsletter

To read the English version of the New Values Newsletter follow the link below.

In this issue:

1. New Values news

New Values workshops in Germany

In conjunction with its international and German partners, New Values is holding several workshops all over Germany. During these workshops German experts for legal and financial questions, as well as for compliance management and the emerging certificates market, will support the company traders in their preparations for the upcoming tasks within the Emissions Trading Scheme.

The second part of the workshop will be practical. Here the participants learn about the New Values trading platform, its functions and the opportunities to facilitate their future trading and compliance tasks. On basis of these facts a trading simulation will be presented. This simulation has been specifically developed for traders to give them initial hands-on experience with the trading tool and to help them evaluate the likely impacts of the Trading Scheme on their business.

In addition to these upcoming workshops an even more exclusive workshop is planned during which all major players - traders, emitters, press and government bodies - have the opportunity to learn about the New Values trading platform and to share their experiences with trading and registers.

Read more about the workshops on www.newvalues.net

Emissions Trading Simulation - Practical Experience

New Values will run a comprehensive European emissions trading simulation during which participants get a practical insight into the operations and implications of the EU ETS. They will learn about the functionalities and advantages of the New Values trading platform Climex. Since the participants can use their company data, this practical simulation helps them to develop a compliance strategy for the real trading period and to assess the impact of the Trading Scheme on their business.

The practical simulation will last 3 weeks, with each week representing one year of the trading period 2005-2007. In each week a set of events will occur that influence the planned trading strategy and the market development, therefore requiring a good market overview and strategy. The trading platform will be accessible the whole time the simulation is running and participants will facilitate the New Values trading opportunities with each other interactively. At the end of each week, the accounts will be cleared with national registers. At the end of this simulation project the participants will receive the results and an analysis of their trading strategy.
Read more about the simulation on www.newvalues.net

2. International news

Import of Certificates of Origin to the Netherlands on the rise

The international trade in Certificates of Origin is gaining strength. Especially in the Netherlands and Austria a large quantity of certificates have been imported in recent months. One reason for the striking rise in the Netherlands is without doubt the abolition of the subsidy (36i) per 1 January 2005. This can currently amount to a maximum of Euro 15 per megawatt hour. The Netherlands imported almost 5 million certificates of 1 Mwh per unit in the last six months, amounting to a total value of Euro 75 million.

Austria requires a large number of Certificates of Origin since energy suppliers there are obliged to state the origin of all energy they delivery. This year Austria imported 1.4 million certificates. Germany too has recently started importing a small number of certificates. Finland (4 million certificates) and Spain (1 million certificates) are the most important exporting countries.

Most of the imported and exported certificates relate to biomass (4 million) and hydropower (1.6 million). But the share of land-generated wind power is growing fast (0.2 million). According to the latest statistics from the Association of Issuing Bodies, the number of issued certificates in the first nine months of 2004 already reached the same level as that for all of 2003: some 18.5 million megawatt hours.

Source: Greenprices.com

3. Jos Cozijnsen's column

Time for the Bush Protocol

Now that Bush will be in the saddle for another four years, we need to count our blessings. Scientists are showing increasingly convincingly that climate change is moving too fast and will lead to disastrous results by the end of this century if mankind fails to act. The Climate Treaty was concluded with Bush Senior in 1992. And the Kyoto Protocol with Clinton in 1997, but Clinton was not able to ensure a well-disposed Congress as back-up. Who would then have imaged that Putin would in fact collaborate with the EU on climate policy, and is now joining the emissions market, while America would step back from this market?

The EU would like to see America ratify the Kyoto Protocol. But there’s no chance of that with Bush and the Bush-oriented Congress. So if things can't be as they should be, then at least we can see what is still possible: forget the K-word and conclude a Bush Protocol. And here I mean a protocol about 'bushes', i.e. preventing emissions caused by deforestation. Give developing countries credits if they leave the forest standing and get involved in reforestation: this in itself would make a huge difference to emissions. The advantage: it's a logical approach for Bush's religious adherents.

Then there is the question of technology: how do we get US on board? This is logical too: use the clean technology given to mankind by God or Allah, using energy sparingly and rewarding companies as soldiers for peace if they prove they are joining the battle against the fossil-fuel age. The leader of the UN commission searching for weapons in Iraq is already on record as saying: "Climate change is an even greater problem than terrorism." He pointed to the danger of eco-refugees and eco-terrorism: chronic drought, loss of agricultural land, destruction of harvests in developing countries which all keep people poor, and which generate mass migrations and hate of the countries who could prevent this happening.

Moreover, the Bush Protocol should also devote attention to agricultural methods that save CO2 and help to store it in the ground: the huge areas in the Midwest are suitable for this approach. And there are techniques that allow coal to be burned without CO2 emissions. I think that whoever the president may be, even Ohio would be in favour of this. In favour of a Bush Protocol, as long as it requires further emissions reduction after 2012!

4. Diary

• 22-23 november: 4th Annual Emissions Trading Conference, Euromoney, Le Meridien Piccadilly, London


• 23 november: Congress on Emissions Trading and Implementation , Rotterdam, organized by the Ministry of Housing, Spatial Planning & Environment and the Ministry of Economic Affairs (VROM/EZ)


• 22-23 november: Sparks and Flames Conference 2004, ICBI, about the horizons of the energy sector, Okura, Amsterdam

5. Glossary

Forward trading

A forward is a bilateral contract to buy or sell a product at a moment in the future at a price you agree now. So in forward trading you know who you are doing business with. However, the risk that one of the two parties will not be able to deliver at the agreed moment is not covered.

Forward trading is one of the trading forms that New Values offers on its platforms. You can read all about this on www.newvalues.net