Baron Traders CER Carbon Brochure March 12

8/2/2019 Baron Traders CER Carbon Brochure March 12

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b a r o n t r a d e r s . c o m

OpportunitiesThe international carbon credit marketsprovide investors with exciting opportunitiesfor long term capital growth. CertifiedEmissions Reduction carbon credits, knownas “CERs”, are a fast-growing, globally tradedcommodity and are likely to appreciatesignificantly in value as the global markets

mature and the international demand forcarbon credits increases.

The ReturnMarket volumes and prices for CERs are forecastto grow significantly between 2012 and 2020.Volumes for the global carbon market reached$142bln in 2011 and are expected to reach$2-3trillion by 2020. The price of carbon creditscould rise as high as € 90 per tonne if Europe is to

meet its carbon targets, according to a Bloombergreport in 2011.

Certified Carbon CreditsCERs are a SIPP approved investment andare traded daily on international exchanges.

Safe Custody AccountThe carbon credits you purchase through our

UK provider will be held for you in acustodianship account on an internationally

Investment opportunities in the Global Carbon Markets



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recognised carbon credit registry by an FSAregulated firm. Safeguarding client assets is ofparamount importance to our UK provider andthis relationship provides stability and peace ofmind to the investor.

Investment HorizonInvestments in carbon credits are best suited

to investors who have a mid to long terminvestment horizon. Carbon credits are atraded commodity and as such holdings canbe liquidated at any time.

Exit StrategiesBeside the European Union EmissionsTrading Scheme, Japan, South Korea,Australia and China have presented plans tointroduce national or regional trading

systems. Australia has set a price of AUS$23($23.50) per tonne on carbon from July 2012,

with an emissions trading scheme starting in2015. The introduction of these new marketswill significantly increase global demand forCERs.




High Quality Carbon CreditsThe carbon credits you purchase from us areCertified Emissions Reductions – known asCERs. CERs are carbon credits that areaccredited to internationally recognised andrigorous emission reduction standards, andare an integral part of the United Nations’Clean Development Mechanism. They are astandardised commodity and can be boughtand sold on global carbon credit exchangesor banked for future use. Individuals andprivate or public organisations can participatein the CER market. Projects that generateCERs are designed to encourage investmentin and the transfer of environmentally safetechnologies to reduce harmful greenhousegases.

CERs are traded by the World Bank The carbon credits that you are able topurchase from our UK provider are the same

UN certified credits that are traded by themajor international banks and institutionssuch as the World Bank, who themselves aretrustees of 12 carbon funds and facilitiescapitalized at $2.7 billion. This demonstratesthe significant commitment of globalinstitutions to support market basedinstruments such as CERs to fight climatechange.

The Kyoto ProtocolIn 1992 over 180 countries at the “EarthSummit” in Rio de Janeiro adopted the UnitedNations Framework Convention on ClimateChange (UNFCCC). In 1997, 55 countriesadopted the Kyoto protocol, which createdthe Clean Development Mechanism (the‘CDM’), carbon credits and the carbon capand trade scheme that is in place today.CERs are part of the Kyoto Protocol, and theirpurpose is to assist developing countries to



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achieve sustainable development, and toassist developed countries to reduce theircarbon footprint.

Carbon credits –the fastest growing international marketHailed as the "Kyoto surprise", the carbontrading mechanism has enjoyed unexpectedsupport from developing countries, and hasbeen a success story that is today beingrolled out across the word. Japan, SouthKorea, Australia and China have presentedplans to introduce national or regional tradingsystems, and discussions are also underwayin Canada, Brazil, India, Mexico, South Africa,Russia and Ukraine to introduce new carbontrading schemes that all take their lead fromthe Kyoto Protocol. Several countries such asChile, Turkey, Mexico and China could launchpilot carbon market schemes by the end of2012 under the guidance of a World Bank

scheme. All of these programmes willsignificantly increase the volume of CERs thatare traded globally.




Important InformationOur clients’ carbon assets are held in a secure registry account managed by FSA regulatedfirms appointed by us to provide you with a secure custodianship service for the carbon creditsyou have purchased.

Your credits are held securely and you are able to access them at any time should you wish tosell them or move them to another account. No-one else can do anything with your carboncredits without your written permission.



Risk Warning

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1. All investments are speculative and will fluctuate in value. It should not be assumed that the value of investments willalways rise. Past performance is not a reliable indicator of future results. You may get back less than the amountoriginally invested or even lose the full amount.

2. You should carefully consider in the light of your financial resources whether investing in Carbon Credits issuitable for you.

3. Changes in currency exchange rates may adversely affect the value of any overseas investments or investmentsdenominated in a foreign currency.

4. There may be a big difference between the buying price and the selling price of Carbon Credits. If you have to sellthem immediately, you may get back much less than you paid for them. You may have difficulty in selling CarbonCredits at the price you wish to achieve and, in some circumstances; it may be difficult to sell them at any price. It canbe difficult to assess what would be a proper market price for these investments. You should not invest in CarbonCredits unless you have thought carefully about whether you can afford to do so and have taken appropriateindependent advice.

5. Representations made by our sale consultants, agents or sales literature either orally, in paper or electronic form donot form part of our Terms and Conditions. We give no warranty as to the future value of Carbon Credits.

6. Forwards, options and other derivative contracts in relation to Carbon Credits are regulated investments in the UnitedKingdom. However, Carbon Credits sold by our UK provider are not derivatives and, as such, are not regulatedinvestments. Accordingly, our UK provider is not required to be regulated by the Financial Services Authority ("FSA") orany other regulator in the United Kingdom. This means, among other things, that a person buying Carbon Credits fromour UK provider will not benefit from any protections afforded by the FSA and would not have access to the Financial

Services Ombudsman or the Financial Services Compensation Scheme.7. our UK provider is not regulated by the Financial Services Authority and is not able to give financial

or investment advice.



Baron Traders Ltd.Suite 31 Don House,

30-38 Main St,Gibraltar

Tel (uk): +44 (0) 203 137 4400Tel (International): +34 651 586 498

[email protected]

Baron Traders CER Carbon Brochure March 12

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