GreenStream raising €50m climate markets fund

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Nordic carbon asset management firm GreenStream Network is aiming to raise initially up to €50 million ($72 million) into a fund that targets superior returns from trading carbon and potentially other environmental commodities. The GreenStream Climate Market Fund will trade liquid environmental products, such as EU allowances (EUAs) and cer tified emission reductions (CERs), with the aim of outpacing the gains made by buying-and-holding carbon.

The price of EUAs is expected to reach €40 by 2020, said Helsinki-based GreenStream, compared with the €14 seen at the start of this year. Backtesting the fund’s trading strategy from mid-2008 to end-2010 provided on average a 25% better return annually than a buy-and-hold strategy, it said. “We are already managing five proprietary funds” including funds that invest in Clean Development Mechanism projects and renewable energy, executive vice-president and deputy CEO Tomas Otterström told Carbon Finance. “We wanted to bring to the market a fund that’s in the more liquid part of the market, that’s better structured for financial market investors,” he added.

The fund will allow investors to enter or exit on a monthly basis and will only invest in the most liquid, exchange-traded, environmental commodities, which at this time are mainly EUAs and CERs. The size of the fund is limited by the size of the markets, Otterström said. “At this point, it has the capacity to go to €50 million,” he said.

The fund is aimed at professional financial investors in Europe, such as pension funds, insurance companies and foundations. It is being launched in collaboration with Contango Fund Management, a six-year-old Finnish company that specialises in commodity funds, which will provide the administration services for the fund, Otterström said.

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Opening China markets for Sarlin

GreenStream has opened China markets to many Finnish small and medium sized companies. One of the main technology partners at the moment is Sarlin.

Shangdong Guangjun Paper – annual energy savings up to 32 %

Annual savings:

Electricity saving: 1926.6 MWh
Water saving: 18495 m3
Steam saving: 2652 t
Standard coal: 1068 TCE
Emission reduction: 2766t CO2e

Energy Efficiency for Delong Steel

GreenStream’s project saved 15 % of the compressed air related electricity costs annually for Delong Steel’s Xingtai steel mill. The technology provider was Sarlin.