The Parhelion Post 2012 Eligibility Insurance is a new product based on the interest shown by a number of carbon trading houses, financial institutions and project developers. Uncertainty surrounding the post 2012 eligibility of CERs under the EU ETS has recently been enhanced by the decision to block the use of CERs from HFC 23 and adipic acid N2O projects for compliance from May 2013.
This uncertainty can lead to "eligibility clauses" being inserted into purchase contracts which negate the obligation of the purchaser to buy the credits in the event they are deemed ineligible. Where purchasers are willing to assume the eligibility risk, the price they are willing to pay for the CERs is significantly lower due to the uncertainty surrounding eligibility.
The insurance product developed by Parhelion removes eligibility risk and is designed to be flexible enough to work efficiently and economically in a number of different spot, forward purchase or option structures.
To see more informations visit: http://www.parhelion.co.uk/solutions_eligibility_insurance.html