FAQ's PDF Print

How will I benefit from investments with Carbon Hill?
People like yourself who have an interest in Carbon Hill investment programs will benefit many times over through our carbon credit trading programme. Your initial investment will generate serious financial returns via the auction of your carbon credits to the industries who require additional credits to avoid paying heavy fines for over polluting the worlds atmosphere.

Is there a guaranteed fixed rate of financial returns via auctions?
No, there is no guaranteed fixed rate. Your carbon credits go to auction on a yearly basis and should return excellent dividends from the industries bidding against each other in auction. Polluters use aggregators such as Carbon Hill to gain the best price for their purchase of carbon credits as opposed to using brokerage companies who normally charge an extra fee, usually termed as additional commission payment.

Can I sell my carbon credits myself or am I contracted to sell through Carbon Hill?
You are not contracted in any way to Carbon Hill for the sale of your carbon credits. Your initial investment with Carbon Hill is for the purchase of carbon credits, once this purchase is finalized, the carbon credits are your property, therefore you may sell them at any time to any purchaser and this will not attract any commission charge from Carbon Hill.

Will I be notified when there is a carbon credit auction and do I need to attend this auction in person?
You will be notified of any auction at least 30 days in advance, this notification will be from the Carbon Hill Client Liason Department. You do not need to attend any of the auctions in person, Carbon Hill will act on your behalf, for no additional fee. You are welcome to attend any of the auctions in person, however, any incurred travelling and accommodation costs will be at your own expense, Carbon Hill are not liable for this expenditure.

Do I have to sell my carbon credits at the proposed auction or can I keep them for a later date?
You can sell your carbon credits at anytime, Carbon Hill will advise you on any forthcoming auctions and you are under no obligation to sell at these times. Carbon Hill are here to advise you and to work at getting the best possible financial return for all of our clients.

Can I enlarge my portfolio with Carbon Hill at anytime or am I tied to my initial investment amount?
You can own as many carbon credits as you feel comfortable with. If at any time you wish to purchase further carbon credits, you can do so. Please contact Carbon Hill Client Liason Department for details.

What happens to my carbon credits if Carbon Hill were to cease trading for any reason?
In the unlikely event of the demise of Carbon Hill, your ownership of carbon credits will not be affected. Once the initial purchase of your carbon credits is finalized with Carbon Hill, these carbon credits are totally owned by the registered owner and Carbon Hill have no power of attorney on your investments.

How much is a carbon credit worth?
The value of a carbon credit is influenced by the amount of tax levied on the carbon or other greenhouse gas emissions, the penalties provided for exceeding an agreed upon emissions target, the cost to achieve the reduction, and traditional demand and supply of the reduction product.
Some countries already have a carbon dioxide tax; Denmark's carbon tax is $25 per ton, the UK introduced one in 2001.  Whatever the value of a carbon credit is, it translates to income for activities where emission reductions are being achieved. ICBE provides a venue for tracking emission and reduction activities, receiving credit for reductions, providing a venue to exchange reductions, and documenting transfers to the proper authorities.
There is one ton of carbon in 3.67 tons of CO2 

Is carbon trading the answer to the greenhouse problem?
No. The greenhouse problem will only go away when carbon dioxide and other greenhouse gas concentrations are brought back to or near pre-industrial levels. Carbon trading as a system is not cognant of what the right concentration level of atmospheric CO2 is. Carbon trading is dependent on human consensus to achieve desired greenhouse gas concentration and preferred climate conditions. ? ?Carbon trading is only part of the solution. It allows flexibility in achieving reductions, lowering costs for a broad range of participants. This makes it more attractive for utilities, industries and individuals when considering options such as increasing efficiency, switching to renewable energy use, harvesting carbons, or conserving energy use in other ways.

What is the solution for the greenhouse problem?
The solution is a significant reduction of the greenhouse gases produced by mankind. This can be achieved by coordinating participation on government, industry, community and individual levels. Luckily, the technology to drive our economies emissions free is already available, and a shift over time to these alternate sources of energy is within our means.

Why focus first on carbon dioxide?
Carbon dioxide is released in greater amounts and represents 50% of the warming attributed to greenhouse gases. As the major contributor of global warming, any serious environmental and economic program must first address this issue. The bulk of carbon dioxide comes from generating power and moving about in fossil fuel powered vehicles, the rest comes from agricultural and other activities.
What are some of the other greenhouse gases? Some of the other greenhouse gases are methane, nitrous oxide, halocarbons, and sulfur hexafluoride. These and other greenhouse gases are indexed by their Global Warming Potential (GWP) so they can be expressed in carbon dioxide units. All greenhouse gases can be included in the carbon-trade market.

Why is it OK to trade carbon credits internationally?
Because this mirrors the physical behavior of carbon in the atmosphere. Carbon dioxide released into the atmosphere in Wisconsin may travel to England, then Egypt, then Zimbabwe before it is absorbed by living matter. In fact, it could wander locally or globally for years, even centuries, before it is snared by a plant or breaks down in the atmosphere. From this perspective, the atmosphere is a pool, and you can add or subtract carbon at any point and influence the amount in the pool. ? ?International carbon trading's utility is to help man regulate the global atmospheric level of carbon dioxide and other greenhouse gases.

What is the benefit of turning emission reductions into financial products?
Creating a value for emission reductions credits from renewable energy systems and other activities is one of the main purposes of the ICBE. The monies generated by providing these services will enable financial products to widen use in home and community settings.

What is the difference between carbon credits & offsets?
A carbon credit is a commercial term used to assign a value to a metric tonne of greenhouse gas emissions. When you purchase a carbon credit from a third party you are helping to fund a project that will either reduce or sequester a metric tonne of carbon emissions from the atmosphere in another location.
As a result of purchasing a carbon credit from a third party you are effectively ‘offsetting’ some or all of your own carbon emissions.

What is the difference between the voluntary and regulatory carbon market?
Various governments around the world have already introduced a regulated carbon market (such as a cap and trade model) for trading greenhouse gas emissions (GHG) emissions.
Alongside the various regulated markets a growing number of climate savvy businesses and organisations have also begun to reduce their own GHG emissions in a voluntary carbon market. For example, Australia plans to introduce a regulated carbon market via a proposed emissions trading scheme (ETS) in 2010.

What type carbon credits can we access for you?

As an independent broker we are able to access all the major types of credits available on the market. Whilst they range in quality some of the most commonly traded include;
CER’s - Certified Emission Reductions
ERU’s - Emission Reduction Units
VER’s - Verified Emission Reductions
NGAC’s - NSW Greenhouse Abatement Certificates
REC’s - Renewable Energy Certificates
There is currently a large difference in quality and price amongst the various types of carbon credits available.

How much does it cost to use Carbon Hill?
Carbon Hill charges a brokerage fee for our special brokerage service based on the total purchase price of the carbon credits you need to buy. The percentage will vary depending on the quantity required, type of credits and the amount of work that needs to be done. This fee will typically range from 5.5% - 2.75%* for quantities ranging from 1,000 - 100,000 tonnes.

Does Carbon Hill charge any upfront fees?

Yes, an upfront commitment fee is charged to engage the services of Carbon Hill. The actual amount will be calculated for you on the indicative quote during the application process. This amount will be deducted from the final transaction costs on settlement and is not considered an additional cost.

What is the difference between our standard credits and branded credits?
We understand that our clients purchase carbon credits for different purposes. As a result we can help you purchase two different styles of carbon credits.
Standard Credits: These can be considered generic or no-name credits and are fully certified to offset and reduce GHG emissions, however they have no customised marketing benefits or specific project details. For example you may not know which offsetting project they have come from or the details of it.
Branded Credits: Typically these cost more than the standard credits or come at a premium however they do come with additional benefits. They are specifically chosen to create additional value to your own business and can be used for specific marketing and promotional purposes. We usually try to match these types of credits to your business or organisation.

Why should we use a broker instead or going direct ourselves?
Using a specialist broker for a purchase like this will normally save you time and money in the long run. Carbon Hill understands the marketplace, knows where to access good quality carbon credits and gives you independent advice.
Our job is to find you the best carbon credits and make sure you buy them at the best possible price. When you use Carbon Hill you can be confident you have fully surveyed the market and had independant advice.

What type of prices can I expect to pay for carbon credits?
This is the million dollar question! The market is constantly evolving and so to with it are the carbon prices. Depending on the quantity and type of credits you are looking for, prices can range from the following per credit/tonne.
AU    $ 9.00    to $ 27.00
EU    € 8.00    to € 32.00
US    $ 7.00    to $ 25.00
This information is only to be used as a guide. If you would like more specific up to date prices please contact us to discuss.

Is there a minimum or maximum quantity of credits we will broker?
Carbon Hill is a commercial carbon broker that only services the needs of businesses and organisations. Typically we would prefer to deal in quantities that range from 1,000 - 100,000+ tonnes. Other commercial quantities can be arranged by negotiation.

How can I be sure I am buying the right type of carbon credits?
Carbon Hill only deals in certified carbon credits. For each carbon credit that is brokered by us, 1 tonne of carbon emissions (CO2 equivalent) will be offset and/or reduced by a third party in another location, after all this is what you are paying for.
Our job is too make sure you purchase the right carbon credits to suit your needs, ensure they are of the right quality and make sure they meet the important criteria of  ‘additionality’.

How long does it take to purchase carbon credits?
The process normally takes 2-3 weeks in total to complete once the application form has been completed. Depending on the quantity of carbon credits, availability and price point this may vary from time to time.

What does it mean when they say I have to ‘retire’ my credits?
Companies that wish to offset their emissions with carbon credits need to ‘retire’ their credits once they have been purchased to complete the process. Once a credit has been used by someone (retired) it cannot be used or claimed again. This is an important step in becoming carbon neutral as a business or organisation.

Can I trade my carbon credits in the future?
Yes, carbon credits can be purchased to trade with in the future. A number of companies that believe the price will increase in the future have started doing this already and some are even stockpiling them. It should be noted that if you plan to trade your credits in the future they should not be retired as this will render them as ‘used’.

How do I know if my business is or can be carbon neutral?
The best way to do this is to get an independent company to conduct an audit or assessment for you. The cost will vary depending on the complexity and industry you operate in and you will receive a report that details that status of your carbon neutrality.
Alternatively there are a number of DIY calculators on the internet that can also help with this process. Typically our clients will come to us after they have had this audit done and know their actual net carbon position.
We will then help them to offset the balance of their emissions that they create and cannot offset internally using carbon credits. Hence leading towards carbon neutrality.

 

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