Trading Emissions : TRE – Trading Emissions was an investment fund established to acquire tradable environmental instruments. Its initial investments were in projects developed under the Clean Development Mechanism (CDM) and Joint Implementation (JI) of the Kyoto Protocol.
Listing and investment policy
Trading Emissions listed on AIM in April 2005 and its investing policy and principal objective was to invest in environmental and emissions assets together with certain classes of energy instruments and associated financial products, including emission reduction credits and related assets such as renewable energy facilities and companies whose value is enhanced by way of emission reduction markets and associated regulations.
Orderly realisation and wind up
In 2012, Shareholders amended the investing policy of the Company to carry out an orderly realisation the portfolio of carbon and private equity assets, distribute the net proceeds to Shareholders and then undertake a voluntary winding-up of the Company. The assets comprised principally of a trading portfolio of Emissions Reduction Purchase Agreements (ERPAs) requiring the Company to acquire carbon credits at fixed prices; and a private equity portfolio of investments in unquoted start up and operating companies located around the world. New Directors were appointed to the Board in late 2011, who developed and implemented strategies to restructure, break up and sell the Company’s portfolio of ERPAs and private equity investments.
Cancellation of listing on AIM
On 17 April 2018, the company announced proposals to cancel its listing on AIM. The board said that the company had realised all of its investments and that its continuing principal investment activity was to maximise the remaining proceeds receivable from TEP Solar and from the realisation of EWG Slupsk. The board said that the amounts receivable are small in comparison with the realisation proceeds generated to that date and the distributions that had been made to Shareholders. The board said that, in its view, the cost, management time and the legal and regulatory burden associated with maintaining the Company’s admission to trading on AIM were disproportionate to the benefits to the Company. Shareholders approved the cancellation of the listing at an EGM on 10 May 2018 and the company’s cancellation on AIM became effective on 18 May 2018.