We design investment vehicles that have either a single commodity focus or are diversified across geographies, sectors, and instrument types. Our goal is to deliver attractive returns to our investors by identifying markets with favorable risk/return profiles.
ECP’s investment execution targets two core strategies:
Traded environmental commodity investments generally involve exchange-traded or over-the-counter bilateral transactions in various geographical jurisdictions that are driven by one of four main investment themes:
Supply/Demand
Ongoing fundamental and regulatory analysis, combined with tracking of market behavior, identifies attractive investment opportunities.
Event-Driven
Anticipated changes in market conditions create opportunities for fast-moving investors.
Regulatory Arbitrage
Structural mechanisms within certain carbon markets create attractive risk-reward opportunities.
Relative Value
Identifying price discrepancies between related financial instruments and capitalizing from the relative price movements rather than the overall market direction.
Structured commodity finance investments involve projects that have specific objectives to reduce emissions or achieve other environmental goals. ECP provides capital in the form of innovative “offtake” agreements or other risk transfer mechanisms to ensure that project developers and clean energy producers can access the financing necessary to advance their programs.
Commodity Offtake Agreements 1
Variations include agreements to purchase credits at a floor price or at a discount to market, usually with upside revenue sharing.
Advance Payments (“Pre-Pay”)
The advance payments of capital to purchase a future stream of credits upon completion of project milestones.
Purchase Agreements
A commitment to purchase a future stream of credits upon completion of project milestones.
1 Offtake agreements are pledges (or options) to purchase a future stream of credits, which may be paid for in advance or in the future, or in some combination of current/future payments as negotiated bilaterally or with multiple counterparties.
Cap-and-Trade Programs
Clean Fuel Credit Markets
Renewable Energy Credit Markets
Other & Voluntary Carbon Market
European Union Emissions Trading System (EU ETS)
United Kingdom Emissions Trading System (UK ETS)
California/Quebec Western Climate Initiative (CCAs)
Regional Greenhouse Gas Initiative (RGGI)
South Korea (SKOs)
New Zealand Emissions Trading System (NZUs)
Washington State Cap-and-Invest (WCAs)
China (CEAs)
California Low Carbon Fuels Standard (CA LCFS)
Renewable Fuels Standard (RFS)
Oregon Low Carbon Fuels Standard (OR LCFS)
California Zero Emissions Vehicles (CA ZEV)
British Columbia Low Carbon Fuel Standard (BC LCFS)
Texas RECs (TX RECs)
PA, NJ, MD Renewable Energy Credit Market (PJM Tri RECs)
California RECs (CA RECs)
Virginia RECs (VA RECs)
Australia Emissions Reduction Fund (ACCUs)
Global Voluntary Carbon Market (VCM)
Alberta (Canada) Technology Innovation and Emissions Reduction Regulation (TIER) Performance Standard
Certified Emission Reductions (CERs)
United States Wetland and Stream Mitigation (404 Mitigation)
Article 6 –Paris Accords (ITMOs)
RECLAIM/South Coast AQMD (Regional Particulates)
Houston/Galveston Air District (Regional Particulates)
Canadian Output-Based Pricing System (OBPS)
ECP TRANSACTIONAL EXPERIENCE
ECP DUE DILIGENCE CONDUCTED