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        NEXT GENERATION TRADING

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Presentation on theme: "        NEXT GENERATION TRADING"— Presentation transcript:

1         NEXT GENERATION TRADING what would be borne if Amazon and Match.com forced their way into the old boys club of carbon offsets.

2 Voluntary or Compulsory
Carbon Credit Markets are forums for trading carbon emission credits to put a cost on greenhouse gas emissions As a climate change mitigation strategy, carbon credit markets can be: Voluntary or Compulsory Where companies offset their GHG emissions through the funding of qualifying projects. Both markets are broken .

3 Where will affected Enterprises offset their Emissions?
The market is 176 Billion USD, companies must buy credits but there is a universal distrust of the current carbon credit markets given the financial downturn and uncertainty of the green for/non-profit marketplace. Periodicals from the Wall Street Journal to Forbes report on that that distrust.

4 The Time for a New Platform is now.
A 2013 Gartner study, “Hype Cycle for Sustainability” examines various sustainable technologies to determine their position on the widely accepted “S” curve and found the carbon credit market is in the trough (unmercifully nicknamed the Trough of Disillusionment) (see Graph 2 above, red highlight). They predict that the technology will plateau in 5 to 10 years.

5 Breaking the Brick and Mortar Model
CMC is in a unique position to disrupt both the compulsory and voluntary market. CMC’s market advantage is a simple business model to meet the needs of both Buyer and Seller in a credible open free market at a small set fee. No exorbitant brokers fees of traditional markets No uncertainty of the voluntary market.

6 How? Pursue Corporate Enterprises that have the need to reduce their emissions but are disillusioned with traditional carbon markets but are suspicious of the credibility of the Voluntary Market CMC aims to revolutionize the carbon credit market in the way Amazon changed the brick and mortar retail market. The “hook” will be “Matching Technology” primarily geared to companies (risk management, compliance and corporate social responsibility executives) in procuring free trade carbon credits that align with their companies’ mission. CarbonMating.com (CMC) using advanced technology platform algorithms established by its parent company IAC, formerly SoulMates technology a/k/a Match.com provides real time matches to corporate executive decision makers The value add is two-fold: (1) customization of a companies’ carbon credit portfolio in an effort to increase their profile and (2) assured true-value accuracy of the carbon credit stripped of market premiums. Corporation (Buyer) would fill out survey : (1) company’s profile (industry, size), (2) mission, (3) deal breakers (i.e., projects in sanctioned countries); (4) price point and (5) preferences (e.g., small projects, projects benefiting emerging nations, reforestation projects etc.). The carbon offset producer (Seller) would likewise complete a survey: (1) project profile (e.g., credentials), (2) mission, (3) deal breakers (i.e., gas and oil companies); and (4) preferences (i.e., multinational company, local company, certain industries).

7 Leading Competitors Traditional Exchanges: EU Climate Exchange (EEX) Chicago Climate Exchange (CBX – failed 2011); European Union Emissions Trading System (EU ETS – nearly failed 2008) Smaller broker/resellers in voluntary market – bigger player in that market: TerraPass (US); CarbonFund (US); Carbon Neutral Company (UK); Just Green (Canada Issues: Limited or directed carbon offset project choices - government endorsed products or preferred partner products. High broker’s fees range from 5 to 20% of the trade plus advising and management fees. No customizations or guarantee of carbon valuation day to day. Historically, volatile market due to all of the above.

8 Amazon Business Model Disrupt Current Market provide a true free market for Buyers and Sellers Attract Fortune 1000 enterprises giving access to 1000s of qualified carbon projects Provide Customization and Value Flank competitors utilizing simple business model and charging a two percent commission on completed transactions.

9 Market Size 176 Billion USD
CMC can realistically own Eighty Percent of the Voluntary Market share (1 billion with 2 percent commission); and progressively garner a Twenty Five percent of the Compulsory Market (50 billion with 2 percent commission) both collectively representing a 101 million USD annual profit by 2017.

10 Where is going .. June 2014 3 Million UNDP Social Innovation Funding
December 2014 Launch March 2015 Q1 Trend Up June Q2 Trend Up – JV Funding 5 Million December % Voluntary Market; 10% Compulsory Market June Q2 Trend UP – JV Funding 5 Million January % Voluntary Market; 20% Compulsory Market June Goal Met: 80 % Voluntary Market; 25% Compulsory Market Representing 101 million USD annual Profit December 2017 IPO CMC can realistically own Eighty Percent of the Voluntary Market share (1 billion with 2 percent commission); and progressively garner a Twenty Five percent of the Compulsory Market (50 billion with 2 percent commission) both collectively representing a 101 million USD annual profit by 2017.

11 Will you be an Early rider?
        NEXT GENERATION TRADING what would be borne if Amazon and Match.com forced their way into the old boys club of carbon offsets Will you be an Early rider?


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