Carbon Pools – Financing Energy after Peak Credit

By Chris Cooke

2008 Conference Paper Synopsis

1/ Conventional Financing – involves both “asset-based finance” (Investment) and “deficit-based” finance (Debt), typically “secured” or “asset-backed.”

– investment is either “Public” – by the State – or “Private’ through a legal entity known as a “Joint Stock Limited Liability Company.”

2/ Peak Credit and the Credit Crunch – following last year’s point of “Peak Credit” conventional “deficit-based” financing is drying up rapidly, and probably permanently.

3/ “Equity – but not as we know it, Jim” – using legal frameworks which are not based upon Company Law, but upon Trust and Partnership Law.

4/ Introducing the Carbon Pool –  a simple new investment mechanism where assets remain in Public ownership, but investors could buy Energy Units redeemable against units of energy eg 10 Kilo Watt Hours.

– Carbon Pool funds may then be created, unitised, funded by a carbon levy and used to invest directly in renewable energy (“MegaWatts”) or energy savings (“NegaWatts”).

5/ Outcomes – by creating, and Unitising energy – with intrinsic value – energy value of carbon may be monetised rather than monetising by government “fiat”  intrinsically worthless CO2, or TEQ’s .

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