Released on = June 20, 2007, 7:11 am

Press Release Author = 3C Group - The Carbon Credit Company

Industry = Environment

Press Release Summary = A prompt and transparent sale of certificates would prevent
market distortions.

Press Release Body = Bad Vilbel/Frankfurt, June 20, 2007 - The projected sale of 40
million emission allowances per year can noticeably influence the emission
certificate market. "If you want to place 40 million emission allowances per year on
the certificate market, you need to figure out how to implement this as
professionally as possible," urges Markus Huewener, Managing Director at 3C Holding
AG in Germany.

In the coalition negotiations the governing parties agreed to first sell the
emission allowances and then auction the allowances off later on. "3C appreciates
the parties' decision to temporarily arrange for a sale of certificates at market
value, which could be implemented promptly. A sale would enable installation
operators to access allowances at an early stage in 2008. An auction as the only
instrument would deprive the market of a significant volume due to the lead time of
several months," Huewener points out.

Key decisions concerning the planning and implementation of the sale have yet to be
made. In addition to the selection of the institution to execute the sale, a
decisive issue is the institution's executive freedom. 3C advises against issuing a
mandate for systematic price maintenance that was common within the open market
policy of the German Bundesbank. In fact, the executing institution should have less
freedom and should be obligated to tell the market participants how many
certificates are placed per day. According to 3C's Managing Director Huewener, there
is no need for central price maintenance. "The market for emission allowances is
becoming increasingly liquid. And an increasing number of installation operators are
actively taking part and are even trading derivative financial products such as
forwards and options. This increases the price signal's resilience - in spite of the
various political influences on the emission allowance market."

Should the sale of emission allowances be performed successfully, an auction might
not be necessary. Auctions are particularly suitable when a commodity to be sold has
not had a price yet. However, this is not the case with emission allowances. "The
sale of emission allowances is as economically efficient as an auction - with lower
transaction costs for the government and installation operators," argues Huewener.

3C anticipates a shortage of emission certificates, especially in 2008. This is
mainly due to the slow development of the supply of certificates from climate
protection projects in developing nations under the Clean Development Mechanism
(CDM) installed by the Kyoto Protocol. "Considering that analysts expect the market
in 2008 to be short between 100 and 400 million emission certificates, one can gauge
the impact that the sale of 40 million emission certificates per year would have"
explains Huewener. Thus 3C eagerly awaits the announced regulation for the
implementation of the sale of emission allowances.


About 3C Group - As one of the leading Carbon Asset Management firms in Europe, 3C
originates and procures carbon credits from CDM and JI projects around the world. 3C
Group draws upon an extensive international network of project developers, financial
institutions, technology providers and emission reduction experts. 3C Markets AG
provides consulting services regarding emission trading and hedging strategies,
especially within the EU ETS. 3C Consulting GmbH\'s Carbon Investment Advisory offers
comprehensive expertise on carbon funds and project based Kyoto-mechanisms.
Furthermore, 3C Consulting is among the world's leaders for carbon offset services.


Contact
3C Group - The Carbon Credit Company
Fritz Wilhelm
Head of Corporate Communications
Thomas Langrock
Senior Manager Carbon Investment Advisory
Industriestr. 10
61118 Bad Vilbel / Frankfurt
Tel. +49 (6101) 5 56 58 - 42
Fax +49 (6101) 5 56 58 - 77
E-Mail: thomas.langrock@3c-company.com
www.3c-company.com


Web Site = http://www.3c-company.com

Contact Details = Contact
3C Group - The Carbon Credit Company
Fritz Wilhelm
Head of Corporate Communications
Thomas Langrock
Senior Manager Carbon Investment Advisory
Industriestr. 10
61118 Bad Vilbel / Frankfurt
Tel. +49 (6101) 5 56 58 - 42
Fax +49 (6101) 5 56 58 - 77
E-Mail: thomas.langrock@3c-company.com
www.3c-company.com