AIR EMISSIONS CREDIT TRADING

Problem
A large manufacturer with operations in California was interested in participating in Southern California’s air pollution emissions credit program, the Regional Clean Air Incentives Market (RECLAIM). Their goal was to develop and execute an emissions reduction credit trading strategy that would protect their current manufacturing operations while stabilizing or increasing revenue through various air emission credit trading strategies.

Solution
CEA worked with the client to create a solution that served many needs. Specifically, CEA:

• Managed numerous permit and emission reduction credit issues at a facility slated for closure.
• Performed analysis of possible excess credit streams under various business assumptions.
• Intervened with the South Coast Air Quality Management District (SCAQMD) to resolve issues adversely impacting the client’s emission credit allocations.
• Educated the client as to possible trading and brokerage strategies.
• Assisted the client in the auction of credits.

Results

• CEA assisted a client to successfully trade over millions of pounds of credits, resulting in $5 million of revenue for the client.
• CEA developed a strategy to successfully protect the value of the client’s air pollution emissions credit assets at a facility slated for shutdown.
• CEA positioned the client to deftly manage and maximize the value of its air emissions credit assets over the long term.