CARBON GREEN CAPITALCGC

1 What are the top Investor’s thinking?

2 The Green Sector

3 Carbon Credits Explained

4 The Science of Climate Change

5 How is the global economy rising to the challenge?

6 Carbon Credits as an Investment

7 Pricing your Carbon Credits

8 Purchasing through a SIPP

9 Project Development and Finance / Accessing the

ProfitPotentialwithintheCarbonMarket

10 Risk Warning

“The global carbon market is projected to ride a half decade long waveof monolithic growth. The global carbon market value is forecast to grow by 68% per year”

SBI report on Carbon Trading

“Carbon Credits are one of the fastest growing specialities in financial services”

New York Times

“It is predicted that by the end of 2013, the total value transacted inthe carbon markets will have reached US $669 billion, making it oneof the biggest growth stories in investment”

Citi-Carbon Brokers Report 2011

“All the big global investment banks are hurrying into carbon finance”

FortuneMagazine

What are the worlds most influentialinvesteesthinking?

Barclays has predicted rises in carbon credit prices of up to 42% by2012 with other major financialinstitutionssuchasCityGroup,MerrillLynch,GoldmanSachsandJPMorganallhavingbegun to trade this exciting new commodity.

The Greenhouse Effect

Thegreenhouseeffectisoneofthekey factors that makes all life on Earth possible.Inthisnaturalphenomenon,greenhouse gases trap part of the sun’sheatenergyinouratmosphere,keeping the Earth at an avarage temperatureof15°C.Justlikearealgreenhouse this process sustains life and helps it to grow.

Human effect on Climate Change

Human industrial activity has significantlyalteredtheconcentrationof greenhouse gases in our atmosphere. This has shifted the greenhouseeffectoutofbalance,causing increasing temperatures around the world. If we do not act soon,theconsequencescouldbedisasterous.

Everytimeyoudrive,takeaflightorswitchonalight,youcontribute

to the increase in carbon dioxide intheatmosphere,acceleratingthegreenhouseeffectandcausingclimate change.

“Given the magnitude of the challenge, national action alone is insufficient. No nation can address this challenge on its own. That is why we need to confront climate change within a global framework, one that guarantees the highest level of international cooperation.”

Ban Ki-Moon Secretary-General of the United Nations The Stern Review on the Economic Cost of Climate Change

The Stern Review on the Economic Cost of Climate Change

In 2006 the British government commisioned a report on the economic cost of climate change from respected economist Nicholas Stern. The report focused on climate change

anditseffectonwaterresources,foodproduction,health,andtheenvironment.Itsfindingswerestartling.

Accordingtothereport,withoutaction,theoverallcostsofclimatechangewillbeequivalenttolosingat least 5% of global gross domestic product(GDP)eachyear,nowand forever.

Basedoncurrenttrends,theGermanInstitute for Economic Research has estimated that if nothing is done to restraingreenhousegasemissions,the annual cost to the global economy could reach US$20 trillion by 2100.

With this serious threat on the horizon,worldleadersarerisingtothechallengeoffightingclimatechange. For the shrewd investor this istheperfectopportunitytobenefitfrom this global move towards carbon neutrality.

In order to understand the potential forinvestmentintheCarbonMarket,it is important to grasp the current thinking on the climate change issue.

The Science of Climate Change

2 3

What is a Carbon Credit?

Acarboncreditisequaltothereductionofonemetrictonofcarbondioxide,oritsequivalentinother greenhouse gases. It is possible to trade carbon credits by assigning a monatary value to them.

What is a Carbon Offset?

Acarbonoffsetisacarboncreditforcarbonemissions that can be purchased. To give an example; for every tonne of carbon dioxide a party produces,fundingaprojectsomewhereelseinthe world could save one tonne. This process is referredtoasanoffset.

Corporate Responsibility

CorporateresponsibilityisthenewbuzzwordintheCity.Withthegrowingthreatofclimatechange,companies are facing mounting public preasure to take responisbility for their carbon output.

Governments across the world are increasingly recognising the threat posed by climate change. As investors we must understand how the economic environmentwillbeaffected.Byunderstandingthechanging economic environment we can spot future trends,andinvestwiselyinthefuture.Therewillofcourseberisk,butwithriskcomestheopportunityto maximise the return on your investment.

Climate change is a fact- you are already involved. Ifyoufailtoactnow,youarenotonlymissingoutonarareinvestmentopportunity,butalsoacceptingarisk that you have not been paid to take.

Asmorecompaniesstrivetowardscarbonneutrality,investors are starting to move away from high carbon users to forward thinking companies that embrace renewable energy sources and are ready to meet the challenges posed in the new low carbon world.

Carbon Credits Explained

While some companies have to buy carbon credits forregulatoryreasons,suchascomplyingwithEuropeanEmissionTradingSchemes,increasingnumbers are feeling public preasure to reduce their carbon emissions. Carbon Credits provide a means forcompaniestooffsettheircarbonemissions,reducetheirimpactontheenvironment,andevenachieve carbon neutrality.

What is Carbon Neutrality?

The Department of Energy and Climate Change state that an organisation can become carbon neutralwhen,throughatransparentprocessofcalculatingemissionsandoffsettingresidualemissions,itsnetcarbonemissionsequalzero.WithbighighstreetnameslikeMarksandSpencerand Tesco pledging targets for achieving carbon neutralitybytheendof2012,thetrendtowardscarbon neutrality looks set to continue.

“The issue of climate change is one that we ignore at our own peril. What we can be scientifically certain of is that our continued use of fossil fuels is pushing us to a point of no return.”

Barack Obama

Weliveinaworldflux.Ourbusinessmodelsare constantly adapting to meet the challenges of modern living. The future is brighter. The future is greener.

In our towns and cities we can see the evidence;windfarms,solarenergy,andenergysaving initiatives. But what about the carbon that we still produce? For the foreseeablefuture we will rely on carbon heavy energy forourtransport,industry,andhome.

To address the problem of climate change we will need bold new initiatives for managingour global economy.

We are already looking at new ways of generatingenergy,aswellastryingtoreduceour carbon footprint by changing everything from how our goods are produced to how wetravel. But is enough being done?

The Green Sector “Bloomberg New Energy Finance’s database now show that investment increased 13% last year, from the previous all-time high of $247bn recorded in 2010. The 2011 figure is more than five times the $53bn total achieved in 2004”

Bloomberg 11/6/12

How is the global economy rising to the challenge?

CarbonCreditsarepartofauniquebusinessmodel.Unlikemostinvestments,carboncreditscanbringfinancialgainswhileprovidingrealbenefittotheenvironment.

There are two types of Carbon Credit.

Certified Emission Reductions (CERs)

CERs are a type of carbon credit issued by the Clean DevelopmentMechanism(CDM)Executive Board for emission reduction,achievedbyCDMprojectsandverifiedundertherules of the Kyoto Protocol. Countries can use CERs in order to comply with their emission limitation targets.

Verified Emission Reductions (VERs)

VERsareatypeofcarbonoffsetexchanged in the voluntary market for carbon credits.VerifiedEmissionReductionsare usually created by projects whichhavebeenverifiedoutside of the Kyoto Protocol. Throughtheseschemes,industries and individuals voluntarily compensate for their emissions or provide an additional contribution to mitigating climate change.

Why are VERs a good investment?

VERs are traded on a purely voluntary basis. The voluntary market is currently smaller

than the compliance market. However,thevoluntarymarketis driven by the private sector rather than public policy. Because of this the voluntary market has the potential to outstripthemarketsizeofthecompliance regime. Figures show that the investment market for carbon credits has been growing. Barclays Capital goes as far as to predict that carbon will be the biggest commodity market.

Why are investors increasingly turning to VER’s?

With the growing culture of corporateresponsibility,andthe increase in numbers of companies striving to become carbonneutral,investmentincarbon credits seems set to increase.

Additionallyothersrecognizethe potential of the carbon market,andarebuyingnowto protect against sharp rises in future carbon prices. With pricessettotripleby2015,speculation and recognising profitpotentialisthekeytosuccess.

The Kyoto Protocol

Inordertobeatclimatechange,theworldneeds to drastically reduce its carbon emissions. In 1997 thirty-seven of the worlds developed nations met in Kyoto andcommitted to reducing carbon emissions. Governments around the world are now introducing policies to reduce global warming. Currently the world target has been set toreduce 80% of carbon emissions by 2050.

How is this target to be achieved?

AflexiblesolutiontomeetthesetargetswasfoundbyintroducingCarbonOffsetting.Throughcarbonoffsettingwecanneutralisethe net carbon dioxide emission of humanindustrial activity. This reduction will lower the impact of global warming and help to combat climate change.

Carbon Credits as an Investment

What does this mean for the future of Carbon Offsetting?

“United Nations Carbon Credit Prices May Rise by 42% by the end of 2012”

Barclays Capital

“Carbon Prices May Triple by 2013”

UBS

“Carbon credits can not only help the planet but are an allowable SIPP investment too”

The Financial Times

“Carbon trading may dwarf that of crude oil within 5 years”

CFTC Commissioner

“We are witnessing the birth of the greatest and most complex commodity market the world has seen. Last year alone, permits worth more than $55 billion weretraded on the world carbon markets”The Times

“Opportunities for market participants are expected to continue to increase as thevalue of global markets are forecast to grow by 68% per year to $669 billion in 2013”

Carbon Emission Trading World Wide

“There is still time to avoid the worst impacts of climate change, if we take strong action now.”

Sir Nicholas Stern

4 5

Pricing Your Carbon Credits Purchasing Carbon Credits Through an SIPP

“The trading floor price for carbon credits will start at £16 per tonne in 2013 and hit £30 per tonne by 2020”

George Osbourne

What is an SIPP?

A Self-Invested Personal Pension (SIPP) is the name given to the type of UK government-approved personalpensionscheme,whichallows individuals to make their own investment decisions from the full range of investments approved byHMRevenue&Customs(HMRC).

Another subset of this type of pension is the Stakeholder Pension Plan.SIPPs,incommonwithpersonal pension schemes allow tax rebates on contributions in exchange for limits on accessibility.

Tax Free

Investors may make choices about whatassetsarebought,leasedorsold,anddecidewhenthoseassetsareacquiredordisposedof,subjectto the agreement of the SIPP trustees (usually the SIPP provider).

AllassetsarepermittedbyHMRC,however some will be subject to tax charges. One asset not subject to tax are Validated Carbon Credits.

Validated Carbon Credits (VCS, CDM & GS)

Unlikemanyotherassets,carboncredits are not subject to tax provided that they are validated by the Voluntary Carbon Standard (VCS),CleanDevelopmentMechanism(CDM)orGold Standard (GS).

In order to ensure the carbon offsetsareofquality,theVCS, CDMandGShavebeenestablishedto validate the true value of carbon credits.

Each of these standards represent specificrequirementsforthetypeofoffsetandensurethatthecarbon reduction they generate

aremeasurable,permanentandadditional.

Carbon Green Capital guarantees that any one of these standards are met by all of its projects. Each project is independently verifiedandvalidatedto ensure that the carbon credits are genuine.

An investment for tomorrow

AtCarbonGreenCapital,weworkwith several regulated Independent Financial Advisors to enable purchaserstoacquirecarbon credits through an SIPP.

For more information please contact one of our consultants at carbongreencapital.com quotingSIPP.

6 7

Will they increase in value?

Respected Yale economics Professor William Nordhaus has argued that the price of carbon must be set at a high enough level to motivate the necessary changes in the behaviour of our economic production systems necessary to limit future Greenhouse Gas emissions.Hehasadvisedthat,based on the social cost of carbon emissions,theoptimalpriceofcarbon should be around $30 per tonne.Thisfigurewouldofcourserisewithinflation.Basedoncurrentlevels of carbon emissions in the U.S. A tax of $30 per tonne would generate $50 billion of revenue per year.

This evidence clearly indicates a strong probability of an unprecedented rise in carbon prices. For the shrewd investor who

wishestoprofitfromsucharise,this would seem like the perfect time to invest.

Supply and Demand

With more countries increasing their industrial output each year,carbonemissionslookset to increase annually for the foreseeable future. As a result companies will need to purchase morecarbonoffsetproductsfromwhat would be viewed by many as aninsufficientsupply.Ascompaniescompete to buy more credits to offsettheiremissions,thepriceofcarbonoffsetproductswillbedriven up.

The UK Government

Across the political spectrum the UK Governments commitment to the

green energy revolution is clear. Thepriceofcarbonoffsettingmust rise to fund renewable energy. Tothisend,theUKGovernment is dedicated to increasing the trade floorpriceofcarbon.

The ultimate goal is to replace heavy carbon polluters such as coal and oil power stations with clean renewableenergysuchassolar,wind and tidal power. To achieve this target the government is aiming to implement two key measures:

• Agreeninvestmentbank(GIB)

•Aminimumtradefloorprice for carbon

“Global investment in renewable power and fuels increased 17% to a new record of $257 billion in 2011.”

Bloomberg 25/6/12

Project Development and Finance Risk Disclaimer

A Project Based solution

Carbonoffsetsaresometimesdescribedasprojectbased,astypicallytheyinvolvespecificprojectsoractivitiesthatreduce,avoidoroffsetgreenhousegas emissions.

We are currently active in developing the following global project types:

•RenewableEnergy:WindFarmsandSolarEnergy

•MethaneCapture:Reducingnon-CO2emissionssuchasmethanefrom landfillsandmining

•ForestryandLandUse:ReforestationandConservationProjects

•EnergyEfficiency:Replacingexistingincandescentlightbulbswith fluorescentbulbsTransparency

Our team ensures that all carbon credits are generated from projects that are validated,verified,registeredandretiredwhensold.Thisensuresthatourclientsreceivequalitycarboncredits.

For more information about the projects we are involved in and how you can invest,pleasegotoourwebsiteatwww.carbongreencapital.com.

Purchasing made easy

Accessingtheprofitpotentialofthecarbon market couldn’t be easier. Carbon Green Capital provides a simple,transparentframeworkforpurchasing carbon credits.

Whetheryouareanentrepreneur,projectdeveloper,bankerorbroker,ourcomprehensivefirstclassservicewillprovide for you.

Our service includes:

•Trustedandtradablevoluntaryoffset credits

• StrategicAdvice

• PolicyandResearch

• Asecurewebsystemtocreate,verify and trade carbon credits

• Managementforthecomplete life-cycle of a credit

•Accesstootherenvironmental solutions

Independently Accredited

All of our carbon credits are independentlyverifiedbythe VCS,CDMorGMtoprovidefulltransparency with all transactions. Withouruniqueaccesstosomeof themostsoughtaftercarbonoffsetprojects (including VER and CER projects) Carbon Green Capital are at the forefront of the green energy market.

Why not invest today?

Carbon Green Capital have access to a rapidly expanding international network of Greenhouse Gas Reduction Projects,corporatebuyersandcarbonexchanges that can help you to maximise your investment. We are also able to facilitate the retirement of your carbon credits should you choose to do so. We are fully committed to safeguarding your investment by ensuring complete transparency at everystageofyourinvestment,as wellasdeliveringaqualityproductforlarge and small investors alike.

Tofindoutmoreaboutstakingyourclaiminthegreenenergysector, please contact our team on.......

AccessingtheProfitPotentialWithintheCarbonMarket

PurchasingCarbonCreditscarriessomelevelofrisk, and may not be suitable for all investors. Before deciding to trade Carbon Credits you should carefully consider yourinvestmentobjectives,levelofexperience,andriskappetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you shouldnotinvestmoneythatyoucannotaffordtolose.

Prices of carbon credits shown are indicative only and arebasedoncurrentexchangerates.Itmaybedifficultto obtain true market prices for VERs as many are transacted ‘Over The Counter’ and as such values may vary from reseller to reseller. All forecasts are based on historical performance and could change at any time. The value of your Carbon Credits may rise as well as fall. As to any future performance in respect of capital growth is a projection only and cannot be guaranteed. You as the client are responsible for assessing the suitability ofVerifiedEmissionReductions(VERs)carboncreditpurchases as a carbon emission mitigation strategy for your own personal or business use.

Currently,VER’sareilliquidcomparedwiththecomplianceEUAcreditmarket.Theremaybeabigdifferencebetweenthe buying and selling price of carbon credits. Any growth shown,suggestedorinferredisaprojectiononlyandcannot be guaranteed.

Carbon Green Capital deals in the physical delivery of carbon credits operating mainly in the Voluntary credit market. Carbon Green Capital use carbon credits from recognisedandindependentlyverifiedprojectstoensuretheemissionreductionsareeffective.Thecreditscanbeheld for any length of time. All credits handled by Carbon Green Capital will never be sold collectively or without takingspecificinstructionsfromtheclient.

The Accuracy of Information or content on this website is subject to change at any time without notice and is provided for the sole purpose of assisting clients to make independent decisions. Carbon Green Capital has taken reasonable measures to ensure the accuracy of the informationonthewebsite,printedreportsorreportsavailablefordownloadareaccuratehowever,doesnotguaranteeitsaccuracy,andwillnotacceptliabilityforanyloss or damage which may arise directly or indirectly from thecontentoryourinabilitytoaccessthewebsite,foranydelay in or failure of the transmission

Trading Carbon Credits is not a regulated activity therefore CarbonGreenCapitaldoesnotrequirefinancialregulationorauthorisationbytheFinancialServicesAuthority,which means that you do not have access to the services of the Financial Ombudsman Service or other consumer protectionagencies.Allquotesandtradesaresubjecttothe terms of business.

Carbon Green Capital’s clients have their Carbon Credits held in a nominee account with Carbon Neutral Investments Limited (CNI) on their behalf. Carbon Green Capital acts as a broker and does not give advice.

Carbon Neutral Investments Limited is regulated by the FinancialServicesAuthority,licenseno.403428.WhileCarbonNeutralInvestmentsisregulated,andthecarboncredits are electronically held in nominee with a regulated firm,theVoluntaryCarbonCreditMarketandVoluntaryCarbon Credits themselves is not a regulated product atpresent,astheydonotfallunderthecategoryofaninvestmentproductasstipulatedbyFSMA(TheFinancialServicesandMarketingAct).

8 9

Current EU policy is to achieve a 20% reduction in greenhouse gas emissions from 1990 levels by 2020 Bloomberg.

24/6/12 Bloomberg

Registered in England and Wales No: XXXXXXX

CARBON GREEN CAPITALCGC

34LimeStreet,London,EC3M7AT•T: 020 3553 4100•E: info@carbongreencapital.com•W: www.carbongreencapital.com