Renewable VCUs Successfully Transacted at Climex Auction at € 0.85

On 3 june 40,000 VCUs (Voluntary Carbon Units) were transacted at a price of € 0.85 in a
’reversed’ auction on the Climex Auction Platform.

The buyer announced they intended to purchase 40,000 VERs. Before VER credit holders could
participate in the auction, the projects had to meet certain pre-set criteria. It was determined that the
credits should have the VCS standard and derive from renewable energy projects and will have to be
delivered into the respective registry of the buyer. The maximum price the buyer was willing to pay
was € 2.50.

Many sellers expressed their interest to participate into this reversed auction. The projects were
subjected to thorough selection before they were allowed to participate at auction.
“Seen from the buyer’s side this was a successful purchase auction resulting in a very competitive
purchase price for the buyer”, Sascha Bloemhoff, Commercial Director of Climex commented. “We
thought the starting price of € 2.50 in combination with the requirement of renewable energy was
challenging and were therefore satisfied many participants did offer good quality projects. Nobody
therefore expected this outcome, which proves again that there is an oversupply of VERs in the
market and therefore fierce competition.”

A Fact Sheet describing the Buyer’s exact requirements and the VERPA (VER Purchase Agreement)
were distributed amongst the sellers beforehand, as part of the auction documentation. Sellers had to
disclose the project(s) from which the VCUs on offer would derive. If the requirements were met,
auction participation was approved. The auction was an open order book, descending clock auction,
which means the anonymous offers were visible to all. The auction started at a maximum price of
€ 2.50, with prices moving downwards. The transaction was granted to the seller offering the lowest
price and offering the total quantity of 40,000 VCU's. The project of which the VCUs originate from is a
hydro project.

Because the VERs on offer were already verified and registered, the auction could be organised as
such, that a transaction at auction actually meant closing the deal. Buyer and sellers will sign the
VERPAs provided by the buyer and the VCUs will be delivered in the Registry Account of the Buyer.
Because of the fact that acknowledged standards are in place and registers are operational, reversed
auctions have become an easy and interesting purchase channel. Buyers can formulate a set number
of requirements the VERs have to meet in order to become eligible. Both buyer and seller can then
easily find each other in a very transparent and efficient process.
Climex expects to execute other purchase auctions in the near future and welcomes all interested
parties to register now, so they are always the first to be updated and informed of any future
opportunities. Members of Climex will automatically receive full details on upcoming auctions and
initiatives.