Green Automotive Enters into Agreement to Monetize Future Carbon Credits
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DALLAS--Green Automotive Company Corporation (OTC:GACR) announced today the engagement of Green Giant Venture Fund as part of the Company’s plans to sell forward it’s expected allocation of carbon credits generated by future sales of it’s zero emission, All-Electric vehicles through the developing “Cap and Trade” commodity market.
“Based upon the information provided by Green Giant Venture Fund”
“Carbon Credits, also known as Certified Emission Reductions,” said Fred Luke, President of Green Automotive, “are the evolution of the Clean Air Act of 1990, which set out to reduce sulfur emissions that cause acid rain, but in this case the goal is to reduce the amount of carbon dioxide emitted into the environment by companies whose products emit CO2 in excess of the applicable regulatory standards."
Under newly enacted CO2 emissions regulations, companies whose products emit CO2 will have a limit on the amount of greenhouse gas that their products can emit. The company, or “emitter”, must have an “emissions permit” for a certain amount of CO2 it releases into the atmosphere. These permits set an enforceable limit, or “cap”, on the amount of greenhouse gas pollution that the emitter is allowed to emit. Over time, the limits become stricter, allowing less and less pollution, until the ultimate reduction goal is met.
“The newly developed Carbon Credits,” said Mr. Luke, “are essentially ‘script’ issued as a reward to those companies who reduce the amount of CO2 emitted into the environment by their products. These credits, known as Carbon Credits, are becoming a commodity in which a world-wide market seems to be developing, and those large-scale emitters of CO2, who are unable to meet the regional maximum emission standards in the time allotted, see purchasing as cost-effective alternative to the penalties and fines potentially imposed for not being in CO2 emission compliance within the prescribed timeframe.”
“Based upon the information provided by Green Giant Venture Fund,” said Mr. Luke, “I believe Green Automotive's All-Electric, emission-free vehicles, beginning with the All-Electric Sport Utility Vehicle which showcased recently at the OC Technology Influencer and Summit 2011 in Newport Beach California, will qualify as a Clean Development Mechanism (CDM) as set out in the United Nations Framework Convention on Climate Change, and generate Carbon Credits.”
“When a product is recognized and approved as meeting UNFCCC standards,” said Grant Galloway, Director of the Green Giant Venture Fund, “the amount of avoided CO2 emissions are calculated and Carbon Credits are generated, and once generated they can be sold or possibly used as collateral for working capital loans. The practice of making forward sales of these credits, usually at a discount to current prices, is evolving into a method to monetize one’s efforts to bring clean energy products to market and access capital during a company’s development stage.”
"The European Climate Exchange, or ECX,” said Mr. Galloway, “provides the platform to support the trading of Carbon Credits and encourage responsible energy development on the supply side, and practical economic decisions on the consumption side. We see tremendous market and value propositions for companies like Green Automotive which are at the forefront of bringing clean energy products to market. Even though the discussions for the United Nations Framework and other CO2 reduction resolutions have been ongoing for some time, I would still classify Green Automotive and Green Giant Venture Fund as early adopters in a market that already is at $68 Billion, and is growing at a high double-digit rate.”
About Green Automotive Company: Green Automotive Company Corporation is U.S. public company involved in the import and distribution of Eco-friendly vehicles in the U.S. The Company has an exclusive importer/distributor agreement to market the All-Electric SUV and MPV All-Electric vehicles throughout the United States. The Company's shares are on the OTC Market Tier--OTC Pink Current under the symbol "GACR". Visit USA Electric Auto or write to info@usaelectricauto.com.
About Green Giant Venture Fund: As a private equity fund, Green Giant Venture Fund invests in Carbon Credit eligible public companies throughout the world, and is a registered service provider for both World Bank - Carbon Finance and UNFCCC-CDM Bazaar. The Company develops Project Idea Notes (PIN) and Project Design Documents (PDD), both prerequisites to entering the European Carbon Market. The Company's consultancy services include analyzing, advising, and negotiating financial and ownership structures for potential partnerships or private placements related to the Project, and assists in development and refinement of written materials, presentations, financial models and analyses for use with potential investors and lenders. The Company has reported successful financing and framing of strategic partnerships with major participants in the “carbon financial” sector as a result of its network of its global contacts of “carbon” commodity and equity market participants. For more information, visit Green Giant Venture Fund .
