COZ (ASX) macquarie bank and coz begin to synergise

Massive synergies with Macquarie and Co2.

Mallees in WA? Wonder who through? LOL.

Carr turns to carbon tradingGEORGE LEKAKIS
February 26, 2007 01:15am

MACQUARIE Bank has called in part-time consultant Bob Carr to market a new carbon-credit scheme aimed at retail investors.

The former NSW Labor premier took part in a national roadshow organised by the investment banking group to test the level of interest among financial planners for carbon-credit investments.

Trading in carbon credits is worth tens of billions of dollars overseas but is yet to take off in Australia, which currently has no national carbon scheme.

However, that could start changing in May when a taskforce advising the Federal Government is due to recommend a framework for such a scheme.

Macquarie is developing a range of investment vehicles that would be ready to go when a national system was launched.

Before then, some could be tested in the NSW carbon-abatement trading scheme introduced when Mr Carr was still premier.

Macquarie executive director Anthony Abraham told The Advertiser the bank was designing an investment vehicle that would give small investors a channel through which to gain exposure to the NSW carbon-trading market.

He said response had been positive from financial advisers who attended the roadshow which ended in Brisbane on Friday.

"There is significant interest from financial planners because it's a new investment opportunity that is particularly relevant in light of public concern over climate change," Mr Abraham said. "The investment offering that we make to the public may be a managed investment scheme, but it may be under another structure."

The product, expected to be launched later this year, would enable investors to profit from the sale of carbon credits to 19 electricity companies in NSW and eight high-volume power users including BlueScope Steel, Boral, Visy and Amcor.

Under NSW laws, all electricity providers are required to meet greenhouse-emissions targets.

When they exceed emissions benchmarks, they have to buy so-called carbon credits from greenhouse-friendly businesses recognised by the scheme.

High-volume power users such as BlueScope are voluntary participants in the scheme.

Macquarie is now in talks with the Australian Taxation Office and other government authorities to overcome several obstacles for bringing the product to market.

Mr Abraham said Macquarie was planning to establish a plantation of mallee trees on a 2000ha property in western NSW. They would be planted on the basis that they would never be harvested, thereby maximising the value of carbon credits they could generate.

Retail investors would be given the opportunity to create carbon credits through the investment vehicle which could then be traded on NSW's carbon-trading market.

http://www.news.com.au/adelaidenow/story/0,22606,21285980-913,00.html