Environmental Markets
Goldman Sachs is active in the markets for carbon emissions and Renewable Energy Credits, among other climate related commodities. In Europe, we have been market-makers in the EU ETS since its inception in 2005 and in North America, we established a carbon team in 2007. Additionally, we have created new financial products to help our clients manage the risks posed by climate change.
During 2008, we formed two separate alliances which will provide Goldman Sachs with greater access and liquidity to voluntary and pre-compliance carbon risk management products:
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In November 2008, we announced a multi-year alliance with E+Co to off-take the majority of their international offset portfolio. E+Co is in the business of providing financial backing and business support services to clean energy projects in 28 developing countries. The off-take includes verified emission reductions and certified emission reductions that meet standards including the Gold Standard and the Clean Development Mechanism. |
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In October 2008, we announced a strategic alliance with Blue Source LLC in which we purchased a minority stake in the company and have a multi-year marketing agreement for their offsets. The North American based portfolio of offsets is diverse in project type and includes methane management, industrial gas destruction, carbon capture and storage, and others. |
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In December 2007, Goldman Sachs signed an agreement to invest in APX, Inc., a leading infrastructure provider for environmental markets in renewable energy and greenhouse gases including carbon commodities. APX helps to track, manage, and retire renewable energy certificates (RECs), energy efficiency and conservation certificates, carbon offset credits such as verified emissions reductions (VERs), and greenhouse gas emission allowances.. The company, which is policy-neutral, is well positioned to be a leading provider of registry technology for the developing U.S. carbon market and can leverage this position for expansion into adjacent areas of the domestic and international carbon markets. |