Press Releases

28 December 2006
EEA Fund Management Ltd to aid UK Government in reducing carbon emissions.

Government Carbon Offsetting Fund to acquire CERs from Trading Emissions PLC, a fund managed by EEA:

EEA Fund Management Ltd, Investment Advisor to Trading Emissions PLC, is delighted to announce that it has been chosen to provide the Department of Transport’s ‘Government Carbon Offsetting Fund’ with carbon credits in an arrangement worth around £3m.

Managed by Simon Shaw, EEA Fund Management’s Managing Director and CEO, Trading Emissions PLC (TEP), listed on the AIM London Stock Exchange with £310m under active management, will source and deliver up to 305,000 Certified Emission Reduction (CER) credits over the next three years to cover all central government official and ministerial air travel.

The credits will be delivered from TEP’s portfolio of small-scale renewable energy and energy efficiency Clean Development Mechanism (CDM) projects, which will then be cancelled, offsetting the emissions attributable to central government air travel.

The CDM projects will be located in a number of developing countries, including China, Brazil, Philippines and Thailand and include wind power, energy production from biomass and electricity from methane.

Simon Shaw, Managing Director and Fund Manager at EEA, said:

"This is great news for EEA and TEP and we are delighted to be aiding the Government in its commitment to reducing carbon emissions. EEA has built up a strong portfolio, including many small scale CDM projects with significant contribution to sustainable development and this is fundamental to the Government’s objective."

“The Government is aware of the environmental impact of travel by officials and following efforts first to reduce emissions, carbon offsetting is a way of mitigating, as yet, unavoidable emissions and raising awareness of this impact. The GCOF is supporting the positive contribution the CDM is making to tackle climate change on a world wide stage. We would encourage those in the voluntary sector to use CDM projects, or adopt measures such that the assessment of their emission reductions mirrors the CDM process to ensure the integrity of the voluntary offsets being offered.”

"In 2005, the Government made a commitment in the UK Sustainable Development Strategy to offset carbon dioxide emissions from all central Government air travel from April 2006. The Government Carbon Offsetting Fund will offset air travel emissions produced between April 2006 and May 2009, accounting for some 300,000 tons of C02 emissions during that time."

"The Government Carbon Offsetting Fund will comprise entirely of Clean Development Mechanism projects. The CDM is a mechanism under the Kyoto Protocol through which developed countries may finance projects in developing countries to reduce emissions of greenhouse gases and receive credits for doing so, which they may apply towards meeting mandatory limits on their own emissions. All CDM projects are located in developing countries and must contribute to sustainable development in the host country."