FAQs on NZFFA's Farm and Forest Carbon Group
What is "CF-Partners"?
CF Partners is an advisory and investments firm with specialization in
environmental and global carbon products. The head office is in London
with regional offices in Asia. CF Partners was founded in 2006 by
Jonathan Navon, Thomas Rassmuson and Simon Glossop who collectively
have over 50 years experience in the financial markets.
CF Partners is authorised and regulated by the UK Financial Services
Authority www.fsa.gov.uk.
The firm is supervised by the UK Government and must adhere to all
relevant rules and regulations governing the services we provide. As a
result of this high level of supervision, CF Partners is able to
conduct business with Governments and Government-owned entities.
What is their experience, track
record?
CF Partners is one of the most active traders of carbon credits and has
one of the largest teams of carbon specialists. CF Partners currently
has over 200 trading accounts in carbon emissions approved in spot
market trading. CF Partners is currently working on carbon transactions
with a notional value of approximate €1.2 bn.
Who is John Davis?
John Davis is from Christchurch, New Zealand and is a specialist in the
carbon markets. He has 5 years of experience in the European Carbon and
Energy markets and has spent the last year working in the developing
New Zealand Carbon Market. He also works in the European primary carbon
market and has successfully structured many CDM and JI single project
and portfolio trades as well as numerous spot sales in the European,
New Zealand and global voluntary carbon markets. Previously, John
worked at Spectron as a broker in the French, Dutch and Belgian
Electricity markets before setting up a primary carbon emissions desk
with two colleagues in 2007. John received a bachelor degree in
Chemistry at Canterbury University, New Zealand.
What is an escrow account?
An Escrow Account is an arrangement where an independent trusted
third-party receives and disburses money and/or assets for two or more
transacting parties, with the timing of such disbursement by the
third-party dependent on the performance by the parties of an agreed
upon contract. |
Why should I go with F&FC
Market Reach
CF Partners has existing relationships with many multinational and
domestic purchasers of NZUs. CF Partners targeted marketing of NZUs,
ensures maximum traction and sale price
Ease of Execution
CF Partners has extensive experience in transferring credits to and
from Registry Accounts across the Globe
CF Partners will assist the Seller through the entire process of the
Sale, assisting in moving the credits from the Registry Accounts,
negotiation of documentation, facilitating the Escrow Settlement and
ensuring the best price possible is achieved
Secure and Simple Trading Platform
All trades are done through our settlement arrangement which removes
any credit risk associated with the trade of Issued carbon credits
CF Partners will bear the costs associated with the settlement service
and provide the Seller with an all-in price
What is the cost of joining F&FC
At this moment in time – we can construct trades free of charge. We
just need to consider any other costs/administration that will be
involved going forwards.
What is the structure of F&FC
NZFFA and CF Partners have formed F&FC. CF Partners is the trade
facilitator for members of the NZFFA through the company called F&FC
What is the relationship of NZFFA and F&FC
CF Partners shall facilitate the sale of issued and forward NZUs
generated from the Forests of NZFFA members on a non-guaranteed basis.
The services will include, but are not limited to, assisting the NZFFA
in aggregating the NZUs, negotiating the commercials terms of the sale
of NZUs and execution of the sale of NZUs. Furthermore, CF Partners
will assist in negotiating the terms of any due diligence and legal
documentation requirements needed to conclude transactions. CF
Partners will work to achieve the target price level set by NZFFA,
whilst advising NZFFA on the current market for relevant credits.
Notwithstanding the above, all terms of the sale of NZUs will be agreed
upon between the Buyer and the Seller.
Who manages F&FC
NZFFA administration and John Davis
Can I set a reserve price for my NZU’s
Yes
How does the transaction occur
Below is also a very brief summary of the mechanics of our AA Rated
European Bank settlement service:
- F&FC and NZU Seller agree on a Trade, (the Standard documents
having been agreed)
- The counterparties deliver Cash and Carbon Credits to the
European Bank’s designated accounts prior to 11am Next day (T+1)
- When both cash and credits are in the European Banking
Institutions accounts the
trade will settle. (T+2 or 3)
In this way the service:
- Provides a DvP (Delivery Versus Payment) Settlement Service
- Removes Credit Risk between F&FC and the Counter Party (CP)
- Provides you with the Cash which is deposited in Escrow Accounts
to which the European Bank has no Legal title
When will I get paid
When both cash and credits are in the AA Rated European Bank accounts
the trade
will settle. (T+2 or 3)
