The trade in certificated environmental products has long been established in the US. It is less familiar to investors in the UK and Europe. Green Energy Commodities is a UK-based company that provides the opportunity for UK investors to explore the benefit of this growing market.
The Green Energy Commodities website is www.tradegec.com. This website provides information on the various products offered by Green Energy Commodities. Potential Green Energy Commodities investors and those with a general interest in the certificated environmental products market can view videos via the website which provide further information on how Renewable Energy Certificates and Certified Emissions Reductions operate in practice. Green Energy Commodities also enables potential investors to download brochures, which give further information regarding the products on offer. The Green Energy Commodities head office is in the City of London.
Green Energy Commodities has specific experience and expertise in the trade in Renewable Energy Certificates (RECs). This particular product arose as a consequence of the Kyoto Agreement of 1997. Under that Agreement, the world’s major industrial countries agreed to take concrete steps to reduce carbon emissions. Because the US Senate was unable to tie the hands of individual States, the US Federal Government was unable to formally ratify the Treaty. Nevertheless, the majority of US States put measures into place to control emissions within their jurisdictions. As part of this, restrictions were imposed requiring large polluting industries to ensure that a stipulated proportion of their power usage comes from green sources. RECs were introduced as a means of proving that a set amount of electricity has originated from a renewable source.
Each Renewable Energy Certificate demonstrates that one megawatt hour of electricity has been generated from a specific renewable source. The key feature as far as companies such as Green Energy Commodities are concerned is that RECs are transferrable and tradable. Green Energy Commodities trades specifically in the voluntary REC market. Green Energy Commodities recognises the importance of the fact that possession of an REC enables the owners to state that they have in fact purchased green energy. As Green Energy Commodities explains, these certificates are valuable because many companies – particularly those with a significant public profile – will from time to time be eager to portray a green image to their existing and potential customers. Companies that are known to have invested in RECs previously include Microsoft, McDonalds and Google.