Shell picks ZaiNet for carbon trading

Shell's environmental products group trades 15 products worldwide. ZaiNet will allow it to manage its portfolio in accordance with the European Union Emissions Trading Scheme (EU-ETS), which came into force at the beginning of this year. Shell has also put in place the ZaiNet Renewables Obligation module.

Shell completed the first-ever EU-ETS trade in February 2003, when it agreed the sale of a 'significant volume' of allowances to Nuon Energy Trade; it was also the first company to use ISDA's newly-released emissions trading documentation, in a trade with Barclays Capital in July last year.

Emissions trading is growing rapidly: the European Energy Exchange forecasted that permits representing 150 million tonnes of carbon dioxide would be traded this year, rising to 500 million tonnes in 2008. At current spot prices, this represents a volume of €4.3 billion in 2005 and €14.4 billion in 2008.

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