Renewable Energy & Climate change

Macquarie is an active investor in the climate change industry. We are dedicated to sourcing investments across renewable technologies including wind, solar, landfill gas, hydro, biomass, biogas and geothermal and forestry (avoided deforestation and reforestation). Macquarie also has carbon funding operations.

We provide capital to businesses that are at all stages of development, taking a flexible approach to funding and ownership in order to meet the particular needs of each business.We also provide project finance and corporate advisory services to the renewable energy industry. With qualifications and experience in science, energy, engineering, law, business and finance, our Renewable Energy and Climate Change team is well placed to pursue opportunities in the sector. The team also provides strategic advice to the businesses in which we invest in order to help facilitate performance.

The scope of our climate change activities include:

• direct investment, joint ventures and partnerships in renewable energy projects
• structuring development funding for greenfield projects
• project finance, corporate advisory and mergers and acquisitions
• climate change financial products
• environmental markets and emissions trading
• environmental policy development.

Emerging businesses include:

• geothermal power generation and project development
• terrestrial carbon activities include avoided deforestation projects, reforestation, biofuel
• and soil management activities
• carbon products and sales through Climate Friendly and enVex.

Current renewable energy portfolio

Macquarie is an active investor in a number of renewable energy sectors across Europe, North America and the Asia Pacific and manages in excess of A$1.3bn in renewable energy assets. The table below outlines the sectors and regions in which we currently operate.

	Europe	North America	Asia Pacific
Wind
Solar			—
Landfill Gas		—	—
Hydro	—		—
Biomass			—
Biogas	—	—	—
Geothermal	—	—	—
Avoided deforestation	—	—	—

For further details on our renewable energy portfolio, please view our Capability Statement.

Investing in the reduction of greenhouse gases

Macquarie Capital has acquired a 50% interest in Climate Friendly, a respected 'profit-for-purpose' organisation dedicated to immediate reduction of greenhouse gas emissions globally, by focusing on renewable energy. Climate Friendly's projects meet
global standards such as the Kyoto Mechanisms, Gold Standard and the Voluntary Carbon Standard and are supported internationally by the World Wildlife Fund. Climate Friendly is also a founding member of the International Carbon Reduction and Offset Alliance (ICROA) – which was created to support best practice standards in the global voluntary offset market. ICROA includes eight founding members, five headquartered in the United Kingdom, two in the United States, and only Climate Friendly representing the Asia-Pacific region.

The acquisition of this interest is consistent with Macquarie's existing sustainability approach and allows Macquarie to continue developing its approach to environmental issues, while assisting clients to respond to their environmental risks by selecting the services provided by Climate Friendly.

For more information about reducing your climate impact, or about how Climate Friendly can work with your business or clients to develop and implement climate change-related initiatives, contact Sarah Squires from Macquarie Capital Advisory's Renewable Energy and Climate Change team or visit the Climate Friendly Website.

Environmental product trading

Macquarie Group Limited and Financial & Energy Exchange (FEX) have established a joint venture company to further the development of markets in a range of environment products, a move that will help to establish Australia as a regional carbon trading hub.

The joint venture, enVex, will develop and list on FEX markets a range of environmental products, including forward and Futures contracts for Renewable Energy, carbon abatement credits, weather derivatives and emission permits under the forthcoming Australian Emissions Trading Scheme during the second half of 2008.

On 1st July Climate Exchange plc (owner of of the European Climate Exchange) acquired a 25% stake in enVex, providing a channel for enVex to link into the developing global carbon emissions market.

Through enVex and FEX, corporations can prepare for the 2010 start date if the Australian Emissions Trading Scheme by buying and selling environmental instruments on FEX's over-the-counter and exchange infrastructure.

Please visit the enVex website for further information.

Carbon Sinks

Macquarie has partnered with the CO2 Group to establish plantations of Mallee trees to generate carbon credits for sale on the Australian market. Mallee trees are very efficient at biosequestration of carbon (removing carbon from the air). And, in an environment where carbon is likely to have a cost, plantations of these trees, also called 'carbon sinks', represent an attractive investment option.

In excess of 2,000 hectares of the trees have been planted in New South Wales. They have been established in accordance with Forest Stewardship Council Principles are compliant with the requirements of the Kyoto Protocol.

Contact us

We are always interested to hear about new investment opportunities in the climate change and renewable energy sector. To speak with the Renewable Energy and Climate Change team at Macquarie, please contact: