EnviroPath auctions specialize in spot environmental commodities, including Alberta Greenhouse Gas (“GHG”) offsets and Alberta Emission Performance Credits (“EPCs”). EnviroPath auctions use a competitive bidding process which encourages liquidity and delivers price transparency in the GHG offset and EPC spot markets that have historically been opaque. By participating in an EnviroPath auction, buyers and sellers benefit from seamless transactions using standardized legal agreements that will significantly reduce, or eliminate, the time and cost of doing a straight bilateral transaction.
The launch products for the EnviroPath auction platform are Alberta GHG offsets and EPCs that can be used to meet the compliance obligations of the Carbon Competitiveness Incentive Regulation (CCIR).
Alberta GHG offsets and EPCs are a key component of the Alberta CCIR program. Large Final Emitters (>100k t/CO2e/annum) can use GHG offsets or EPCs for up to 100% of the Alberta compliance obligation. GHG offsets and EPCs are a lower cost alternative to making payment into Alberta’s Climate Change and Emissions Management Fund. The Fund’s contribution price is set at $20/tonne for 2016 and $30/tonne for 2017. To date, offsets and EPCs have traded in the bilateral market at a discount to the Fund price. CCIR offsets and EPCs can only be generated from Alberta based projects and are considered revocable licenses.
ICE NGX TradePath is an established, browser based auction system used extensively in the Alberta Power market both in the Alberta Ancillary Services market as well as Alberta procurement auctions as part of the EPSP. ICE NGX TradePath has been configured to host the EnviroPath auctions.
Customers that have signed up to participate in EnviroPath auctions will have access to historical system reports including detailed trade information, tick-by-tick order tracking as well as summarized auction information (e.g. auction duration, volumes and weighted average prices). These details will provide full visibility into the auction as well as clear price signals to the market and participants. Reports can ensure accurate deal management and reporting for both internal and external stakeholders.
The following is the list of steps in order to become a participant in the EnviroPath Auction market:
To register for EnviroPath and/or for more information please email or call +1 403 974 4363.