Buying VCS Carbon Credits Held Under FSA Custodianship

Many potential investors have probably gleaned all the positive news relating to the carbon markets from a number of sources already and know that there is a wide range of companies out there who seemingly offer well priced VERs.
By: James Richards - Baron Traders Limited
Sept. 27, 2011 - PRLog -- The difficult next step for most, assuming any projects under consideration are fully completed, publicly registered and properly priced, is how safely they can purchase these credits and what sort of service can they expect during and after the purchase?  What happens to the credits and where will they be held?  Will access be available to them and is there any additional costs over and above the price of the credits themselves?  How can they exit and make a profit?  The questions can be numerous and, for anyone considering this new and exciting market, these issues must be made absolutely clear before any funds are parted with.  It is an unfortunate fact that there are a number of rogue companies out there with some clever sales people who are very adept at drawing clients in, based partly on the fact that the market is so new and utilising this to their advantage.  However, some basic homework can result in the difference between missing out on a great opportunity and losing your investment completely.

If you take real estate investing as a comparison.  What steps would you take to ensure that your purchase was sound?  If we use a completed property as an example, your first port of call would probably be to find a reputable real estate specialist who you feel you can trust.  You would probably hire a lawyer who would carry out all the necessary checks on the property including land registry and title deeds, etc. and you may also have the property surveyed.  Depending on country / region licenses are another issue that may require checking.  If rental income was part of the investment package, including a management company, you would most likely want to do some research on them.  A bad management company who cannot maintain the property and vet and manage the tenants efficiently can soon turn your asset into a liability which, if in another country, can produce some very challenging and costly problems.  Similar principles should be applied to purchasing carbon credits.

By purchasing through a VeriSign trusted company like Baron Traders Ltd. (Validated Carbon Credits) you will have access to the most secure, transparent, end to end service with no hidden extras.
You will purchase DIRECT through UK HSBC Banking routes.  This is important because if you are asked to send your money offshore or to a 3rd party agent or escrow company there may be an issue.  Funds should always go to the owner of the credits  and not to intermediary entities.

All our credits are SIPP approved with a number of well know providers.

To minimise risk we would always recommend buying fully completed, issued VCS or above standard credits that can be viewed on the public registry PRIOR to purchase.  If you are considering buying into or talking to companies offering forward buys, you need to ensure that the company offering this is FSA regulated and know that there is a much higher risk if the project is delayed or doesn’t complete.  If that happens, it is possible that you could lose your investment.

We believe that, although the voluntary carbon market is currently unregulated, it will most likely become regulated at some point in the future.  Therefore, everything has been put in place to accommodate this and we are now able to offer the most  secure environment for all clients.  Each investor will have their credits held under the custodianship of an FSA regulated company on one of the major registries at no additional cost and will also be able to view their trades  DIRECT through their own web link access including the unique serial numbers that relate specifically to their credits.  This process and holding environment provides 100% transparency and trackability of the credits at all times and gives the purchaser total peace of mind and full control over their investment.

In terms of exit, another set of questions may arise.  How do I exit?  Do I have to pay to go on an exchange and open an account?  Do I have to trade them myself or will I have to appoint a broker?  If so, where would I find one and how much does it cost?  Who will buy my credits?  At Baron Traders VCC we also have this covered for clients who don’t wish to attempt the sale themselves.  The provider can sell on the clients behalf for an industry standard fee of 5% plus a small set up cost of 99 GBP plus VAT.  With their long established and wide ranging global experience they are well positioned to sell the credits on the clients behalf.

Lastly, It is also important to remember that carbon credits are spot trades so there are no fixed or guaranteed returns.  If what you are being told sounds too good to be true, it more than likely will be or be very high risk.


Baron Traders Limited Registration no. 105368 Registered office: Suite 31 Don House, 30-38 Main St, Gibraltar. Telephone: +44 (0) 203 137 4400

Some interesting facts............

Carbon will be the world’s biggest commodity market and it could become the world’s biggest market overall   Barclays Capital

The Global carbon market reached $142 billion in 2010 and is expected to reach between $2 and $3 trillion by 2020

The voluntary carbon market grew in volume by 34% in 2010, exceeding the growth in the compliance market  State of the Carbon Markets 2011 EcoSystems Marketplace & Bloomberg New Energy Finance

The voluntary carbon market is forecast to grow 8 times from 2011 to 2020

In the voluntary carbon markets, Aviva, Dell, Coca Cola, Puma, Marks & Spencer, Qantas, HSBC, HP and many more including nearly all S&P 500 & FTSE 100 companies buy carbon credits

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Baron Traders Limited. Registered in Gibraltar. Don House 30-38 Main Street, Gibraltar.
Tel: +44 0203 137 4400
Email:*** Email Verified
Phone:+44 203 137 4400
Tags:Carbon Credits, Carbon Credits Investment, Baron Traders, Validated Carbon Credits, Alternative Investment, Sipp Invest
Industry:Banking, Financial, Open source
Location:Gibraltar - Gibraltar - Gibraltar
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