I've been following this stock for over 2 years now and got...

I've been following this stock for over 2 years now and got stuck with it after believing in what they're doing but for a long time because John Howard refusing to sign the Kyoto agreement and the slow acceptance in the global warming and what carbon credit can do, COZ share price has been dead quite for a long time. Until recently, the world leaders and scientists (especially in Europe and Asia) are raising the alarm about the greenhouse effect and with the unusual experience weather around the world, more and more countries and the general public are starting to focus on the global warming and political leader such as John Howard knows if he wants to stay in office he got to change his policies and promote the carbon credit trading.

What is carbon credit ? Well, my personal understanding in a simple summary point is way of reducing carbon dioxide from the atmosphere by producing more oxygen and absorbing CO2 to reduce the greenhouse effect. The best way of doing this is by planting more trees and this is where COZ come in.

In Europe, the government are so concern about the global warming effect that they regulate and enforce company to commit a certain amount of money in carbon credit a year before they can commence business. This legislation has bigger impact on energy company which burn fuel and those that pollute the environment in various ways. My view is sooner or later, government will force company to invest at least a minimum amount of money in carbon credit no matter what business they're in. I guess you can call it company carbon credit tax.

As you know, China economic expansion comes with a cost. The huge pollution from burning coal and oil to generate electricity. The Chinese government is aware of the problem and they're very serious in addressing the issue and having sign the Kyoto agreement, they will definitely consider the carbon credit.

This is where COZ company come in. Company such as Origin Energy sign contract with COZ to plant a certain hectares of tree a year. Not sure how the scale work but I guess defend on the nature of pollution the company product generate, they would have to plant a certain number of hectares of tree a year etc.

As far as I know COZ is the only company in Aust that provide such service, I could be wrong, and the recent change of heart by John Howard will open the door for COZ and the best part is their carbon credit does not just restrict to company in Aust only. I can see overseas company will pay COZ to plant the trees and as long as they can accredit ate or certify the overseas company carbon credit investment and recognise by the local governments then they would have a huge potential.

I have never seen the speed of concern and pressure to address the global warming more so than the last 6 months. You read about it in the papers everyday and broking firm such as Macquarie Bank have been looking at setting up a carbon credit trading and they had discussion with COZ in the past. I also know of another Sydney broking firm is looking at setting up a carbon credit exchange/trading etc. It's full steam ahead for COZ from here.

PS. The above are my personal understanding and opinions. I insist on doing your own research and seek advise from professional. I welcome any poster with information and correction with the above posting.