CantorCO2e goes online to auction carbon credits
Published August 30th, 2007
CantorCO2e, a leading global financial services provider in the carbon market, is introducing an auction platform for the issued carbon credits from the third week of September.
The company claims the process would be risk-free, bring down transaction cost and help sellers as small number of carbon credits get buyers easily.
It would be an internet-based auction, where the volume for the sale would range from 5 lakh to 50 lakh carbon credits. Buyers and sellers would participate anonymously in the auction.
A buyer can bid for as low as 1,000 carbon credits while a seller can submit a minimum of 5,000 credits for sale. This would benefit Indian carbon credit sellers, majority of whom have low carbon credits in their account and find it increasingly difficult to get buyers, who are usually looking for high volumes.
All the issued credits being offered for auction will be pre-delivered into an escrow account. Similarly, a buyer will be required to deposit a surety equal to 10% of the notional value of its intended bid in the account. “The aim is to mitigate the risk and ensure that only serious buyers come in for the auction,†says CantorCo2e India managing director Rambabu.
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