Point Carbon Valuation Tool
Point Carbon Valuation Tool is a web-based capability for valuation and benchmarking of CDM and JI projects and portfolios. The tool is aimed at quantifying the risk and calculating a ‘fair value’ of CDM and JI projects or contracts. It provides refined volume risk parameters and several key risk management metrics vital when quantifying project and portfolio risk exposure.
Who is it for?
The tool is developed for CER and ERU originators, traders, risk management, carbon analysts and private equity investors. As the key traded compliance credits under the Kyoto protocol, Clean Development Mechanism and Joint Implementation credits are the cornerstone of the global carbon market. Point Carbon Valuation Tool helps you manage the complex issues involved when investing in the CDM and JI markets, both as a primary investors or as a secondary purchaser:
- What is the ‘fair price’ for a CDM and JI contract?
- What is the ‘fair value’ of a portfolio of CDM and JI contracts?
- How does the value of a position evolve through the project cycle?
- What is the risk exposure and how can it be represented quantitatively?
- How much of the contracted volume can be sold forward?
The tool is based on Thomson Reuters Point Carbon’s Valuation Methodology, developed together with several experienced market players participating actively in the development. The Valuation Methodology is strictly empirical and all risk parameters are extracted from Thomson Reuters Point Carbon’s proprietary databases of CDM and JI project data.
The methodology provides critical insight into cancellation, revision, delay and performance risks. Prominent risk parameters are broken down on geography, project maturity, and project type.
Point Carbon Valuation Tool compiles all the empirical risk parameters you need into an updated web-based tool. Subscribing to Point Carbon Valuation Tool also entitles you to monthly analyses of changes and trends in the CDM and JI risks.