Climate Change Capital in shareholder cash-call as HFC delays bite
Climate Change Capital (CCC) has tapped its investors for up to £4 million ($6.43 million) to shore up its regulatory capital position, as delays to carbon credit issuance from HFC23 Clean Development Mechanism (CDM) projects hit cash flows.
A letter from chairwoman Vivienne Cox to shareholders on 18 October, seen by Carbon Finance, warns that the suspension of certified emission reductions (CERs) from HFC projects “is having a significant impact on the company’s business”.
On behalf of its carbon funds, CCC manages the Zhejiang Juhua Co. HFC project, named ‘Panda’, which generates 4.8 million CERs/year, and the China Fluoro Technology Co. project, named ‘Polar’, with issuance of 4.2 million/year.
The CDM Executive Board has halted all CER issuance from HFC projects while an investigation is carried out into allegations of ‘gaming’ by operators to maximise the number of CERs they can generate. A decision is expected this month.
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