Corporate services

Intertrust pioneered emission rights structuring. When the ETS was put into action on 1 January 2005, we were ready – with an infrastructure for helping companies to understand – and cope with – the demand for reduced emissions. You can count on us when it comes to address emissions related equity-to-debt services. Trading solutions. Administrative and management support. We are proud to be the industry leader, guiding companies in this area of social responsibility.

We are your professional partner in reducing emissions responsibly and cost-effectively.

Such a tool is the CPCP (Carbon Portfolio Compliance Platform) software package. This helps you – and the company you represent – manage multiple-registry accounts under the ETS; you are able to establish pan-European-validated net positions. Using the software, you can administer and manage the emission positions for a portfolio of installations. The and perform a wide range of reporting, from CO2, SO2 and NOx to mercury and water.

Another tool we provide is the CPM (Carbon Project Manager) web-based application designed to help manage global portfolios of carbon projects. CPM covers the full value chain from concept to issuance to trading. The technical features include online, real-time tracking; risk management; and oversight.

With this pair of products – CPCP and CPM, Intertrust provides you with the tools to manage and administer carbon emission rights globally – and fulfill social responsibility.

Because of the vastness of the Clean Development Mechanism market – and the average creditworthiness of the sellers. How can you turn around this exposure? By appointing a neutral custodian via a custody agreement. The custodian becomes the focal point – and initial recipient of – the carbon emission rights issued. That catalyses the credit exposure, turning it into mere project technical exposure. The emission rights are then used as collateral. Financing is now available based on the emission rights’ forward stream. Rather than requiring credit lines, the custody agreement spurs carbon credits to generate credit lines. This is revolutionising the carbon market – by allowing non-creditworthy project developers to get capitalised and by letting the larger creditworthy players vastly increase their transaction portfolios. The custody agreement can also be used to list a carbon emission right.

Having a custodian safeguards project carbon emission rights and emission-reduction units. Given the delays of the International Trade Log, a custody arrangement makes sense: it enables the transfer of allowances through secondary transactions, mitigating unwanted ‘settlement risks.’ A custody agreement also eliminates the need to register other parties as project participants. The custody arrangement facilitates title transfer between parties. This then stimulates the secondary CER market. Custody agreements minimise risks associated with holding credits in the CDM registry longer than necessary. The arrangement places on the same footing investors, project developers (non-parties and developing countries), and other entities having legal seats in the EU. The agreement limits risks associated with eligibility to transfer credits between registries. It facilitates credit transfers and swaps, ensuring the timely availability of specific credits.

These are our relevant services:

• Acting as project participant receiving carbon credits on our custody accounts
  
• Managing the accounts
  
• Reporting to the CDM Executive Board, the Joint Implementation Supervisory Committee and others
  
• As a frontrunner in the emission rights market, Intertrust implemented the industry’s largest custody arrangement to date. We organised an industry “first”: a spot swap of European allowances for carbon emission rights. We also structured the acquisition of an emission rights holding company. The gain? We eliminated the counterparty risk for Trading.