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RBC unveils worldwide carbon trading capabilities to help
industry manage greenhouse gas emissions
TORONTO, NEW YORK and LONDON, July 18, 2008 —
RBC Capital Markets today announced its global capabilities
for greenhouse gas (GHG) emission trading:
- RBC Capital Markets is a General Clearing member and
market maker on exchanges around the world, trading on such
exchanges as the European Climate Exchange (ECX), the Montreal
Climate Exchange (MCeX), the Chicago Climate Exchange (CCX),
the NYMEX Green Exchange and soon under the Regional Greenhouse
Gas Initiative in the Northeastern United States. The firm's
new emissions trading group also provides access to over-the-counter
(OTC) markets by acting as counterparty, and accommodates
spot and forwards, as well as various OTC structures.
- RBC Capital Markets is a significant player in the Canadian
GHG emissions trading market, with the infrastructure to
be able to grow quickly as U.S. and global demand increases.
In addition, RBC's Futures and Base Metals Group of Global
Prime Services provides execution, clearing and custody
of EU Allowances (EUAs) and Certified Emission Reductions
(CERs) certificates for markets in North America and Europe.
"Our clients are looking for a firm that can offer an
international solution for our clients to a global problem,"
said Mike MacBain, head of Global Debt Markets, RBC Capital
Markets. "We are a market making provider, taking principal
risk, providing pricing liquidity and facilitating hedging
for clients. We're building a global book for these markets
and becoming a one-stop shop for our clients' GHG emissions
trading needs."
RBC Capital Markets' emissions trading group, under the leadership
of industry veterans Frank Riley and Kevin Paley, operates
trading desks in Toronto and London and executes trades on
markets in the U.S, Canada and Europe.
How GHG Emissions Trading Works
GHG emissions trading is a system that restricts the total
allowable emissions of greenhouse gases, while giving capped
emitters the flexibility to meet their emission targets in
the most economic way. The Kyoto Protocol, which was developed
to reduce greenhouse gases worldwide by setting emission reduction
targets for developed countries, provides the backdrop against
which domestic trading programs have been developed.
In a regulated GHG emissions market, governments set annual
targets, or caps, for greenhouse gas emissions from industry
in their regions or countries. Capped entities are issued
allowances equal to their capped amount. If a capped emitter
produces less than the permits allocated to it, the surplus
is a carbon credit that can be sold to another emitter or
on the open market, or retained for future use. Non-capped
emitters may also participate in GHG markets by making voluntary,
permanent emission reductions that are legally recognized
by a regulator. Those Emission Reduction Credits or Offsets
can also be traded in the open market. One carbon credit is
equal to one tonne of carbon dioxide reduction.
RBC's Commitment to the Environment
Offering RBC Capital Markets' clients a means by which they
may manage their GHG output is an extension of RBC's longstanding
commitment to the environment. RBC has been named one of the
world's top 100 sustainable companies for four consecutive
years, according to the "Global 100" ranking compiled
by Innovest Strategic Advisors. Since 2003, RBC has been a
respondent to the Carbon Disclosure Project (CDP) and has
been named a Climate Disclosure Leader by the CDP and the
Conference Board of Canada.
RBC's environmental policy outlines its commitment to offer
innovative, practical and cost-effective financial products
and services to promote environmentally sustainable choices,
as well as the enterprise's own initiatives to manage its
environmental footprint.
For full details on all RBC environmental initiatives, please
refer to the RBC Environmental Blueprint: http://www.rbc.com/environment.
About RBC Capital Markets
RBC Capital Markets is the corporate and investment banking
arm of RBC and is active globally in debt origination, sales
and trading, foreign exchange, infrastructure finance, structured
products, metals and mining, and energy. Its North American
platform includes a significant U.S. middle market investment
banking franchise and leading equity, underwriting, sales,
trading and research businesses. Bloomberg ranks the firm
as the 12th largest investment bank globally.
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For more information, please contact:
Gillian Hewitt - Canada, (416) 974-0668, gillian.hewitt@rbc.com
Kevin Foster - U.S., Latin America and the Caribbean,
(212) 428-6902, kevin.foster@rbc.com
Louisa Fairman - Europe and Asia, +44-20-7029-7821, louisa.fairman@rbc.com
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