The deal allows LYP to hedge a small proportion of its potential carbon exposure upon the introduction of the proposed cap and trade Carbon Pollution Reduction Scheme (CPRS) in 2010.
"Despite our significant concerns in regard to the viability of the proposed CPRS legislation, it is very important that LYP supports the development of a liquid secondary market for the trading of carbon to ensure LYP is able to manage its carbon risk effectively," said LYP's manager of emissions trading implementation group Richard Wrightson.
LYP is part owned by Australian energy firm AGL and Tokyo Electric Power and is already active in the Australian carbon markets through the trade of Australian Emissions Units (AEUs).
- Quant Finance Master’s Guide 2019
- People moves: SocGen adds in prime services, Deutsche fills new rates hole, HSBC makes model move, and more
- Cross-currency swaps could hasten RFR shift in Australia
- Podcast: Kenyon and Berrahoui on the pitfalls of PFE
- EU parliament OKs no-action powers but leaked doc signals delay