Carbon Credit Notes (CCNs)

Carbon Credit Notes (CCN) provide holders with the opportunity to gain exposure to Carbon Credits that are generated from carbon dioxide emission reducing projects, through holding a listed tradable security.

Benefits

• CCNs offer a simple and effective way to gain exposure to its lucrative investment market
• CCNs offer exposure to a Euro denominated asset, protecting against potential underperformance of the Rand
• CCNs are listed on the JSE. Investors can avoid lack of liquidity of investing directly in carbon reducing projects
• Carbon emissions are not correlated (positively or negatively) with equities offering portfolio diversification and downside risk protection

Who should use this product?

• Enterprises or governments wanting to comply with emission reduction targets and avoid paying penalties for not reducing emissions
• Investors who hold onto them in the expectation of an increased demand, therefore increasing the price of the note

How to use this product?

• CCNs can be traded via a stockbroker
• The price of a CCN is determined by supply and demand of carbon credits in the market
• CCN holders in South Africa do not take physical delivery of carbon credits
• The issuer is obliged to deliver the carbon credit cash equivalent amount to the holder of each CCN