CARBON CREDITS
Carbon Credit Note
In 2005 Sterling Waterford released the world's first carbon credit derivative and the first carbon credit investment product listed on a recognized exchange any where in the world.
A Carbon Credit Note is a pre-paid forward contract in terms of which the Issuer is obliged to deliver to the Holder on the Delivery Date:
* a Carbon Credit; or
* the Cash Equivalent being the Carbon Credit Market Price on the delivery date,
The Carbon Credit Note overcomes many of the obstacles for the non trading investor to get exposure to the carbon market without suffering the liquidity administration, project risk and expense difficulties that to which contracting directly into a project would have been heir.
In October Sterling Waterford listed its second Carbon Credit Note on the JSE Securities exchange.