Vertis Environmental Finance plc

Vertis Environmental Finance plc

Vertis Environmental Finance plc

Vertis Environmental Finance is an investment and financial advisory firm specialised in emissions trading and environmental markets. Vertis has concentrated on emissions trading in Central and Eastern Europe since 2001 and was one of the first companies to execute Joint Implementation transactions, broker deals in the EU Emissions Trading Scheme, and sell VERs in this region. The Company`s management team comprises professionals with international experience in investment banking, asset management, risk management, sales and engineering.

Company details

Csörsz utca 45 , Budapest , 1124 Hungary
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Business Type:
Service provider
Industry Type:
Banking & Finance / Insurance / Legal
Market Focus:
Internationally (various countries)
Year Founded:
2001

Vertis is a top environmental commodities broker, specialising in emissions, second generation biofuels and energy certificates. As one of the carbon market pioneers, Vertis started its emissions trading business in 2001.

Our business is about developing a deep understanding of our clients' businesses to be able to fulfil their needs and solve their problems with the tools and products we have.

Our commitment to you

When you deal with Vertis you get our commitment to care, clarity and excellence. We make the effort to really understand our clients and make sure you get the deals you need. We deal transparently and we’ll speak your language clearly and frankly – we don’t use jargon to sound clever. And we do our upmost to provide excellent products and excellent service.

The facts

  • Over 1000 clients primarily in the utility and heavy industry sectors across Europe
  • Brokerage and trading carbon instruments, biomethanol and energy certificates
  • Founded in 1998, specialised on emissions trading since 2001
  • Active in the EU Emissions Trading Scheme and in the markets created by the Kyoto Protocol for over ten years
  • Named Best Broker in the carbon market by Thomson Reuters Point Carbon in 2011
  • Named Emission Dealer of the year by Energy Risk in 2015
  • Member on 3 carbon exchanges: EEX, CME Group and ICE
  • Projects business line is exclusive advisor on 5 large N2O abatement projects
  • Privately owned, financially strong, turnover of 1bn EUR average in
  • the last 4 years

Based in Budapest, Hungary with 25 staff speaking Catalan, Czech, Dutch, English, French, German, Hungarian, Italian, Polish, Portuguese, Romanian, Russian, Slovak and Spanish.

We buy and sell emissions trading instruments on our own account for our clients, and arrange structured emission trading transactions.

We work and trade with over 1000 clients in Europe, international banks, financial institutions, funds and large traders.

We trade on all the main carbon exchanges, including CME Group, EEX and ICE.

Our clients and counterparties include:

  • Industrial companies which are part of the EU Emission Trading Scheme
  • CDM and JI project owners which trade CERs and ERUs from projects
  • Trading houses and banks with emissions trading desks
  • Governments that buy and sell emissions instruments

Most of our clients are based in the European Union but we do business globally.

The products we broker include spot and forward trades of EU Allowances, CERs and ERUs; swaps between vintages and different instruments; repos and forward transactions with advance funding for raising working capital.

Much of our work is to do with helping clients solve problems profitably. Clients might need to raise funding, overcome technical obstacles with registries or bureaucracies, understand and reduce risks their business is exposed to. We design trades and investments to address such problems.

Experienced: We are very experienced, having traded over 700 million EUAs and over 120 million CERs and ERUs – we have been in the emissions business since 2001.
Trusted: Every week we handle millions of Euros of clients' money.
Frank: We tell you how it is; we don’t try and make it look more complicated than it is.
Fast: We decide, contract and transact quickly – you get your cash and we initiate the transfer of the units on the same day.
Close: Our people are local and speak your language – we don’t need to fly in from London and you don’t need to speak English.
Short and long term: We do transactions that take seconds, yet we also do project development work that takes many years to materialise.
Innovative yet careful: We come up with new ways of solving problems, cutting risks and making money for you.

We have over 1000 clients in 60 countries, primarily in the EU.

Our clients’ industries include generation of heat and power, oil refining and manufacture of bricks, cement, lime, chemicals, fertilisers, foods, paper, iron and steel, aviation, renewable power generation and fuel blending.

Case studies

These are some examples of more interesting trades which we have done recently. They give an idea of the range of transactions we are able to execute and show some of the ways we solve clients’ problems.

Collateral recovery - €3 million

A client had EUAs tied up as collateral under a loan agreement with a financial institution. The collateral was significantly undervalued by the financial institution. Therefore the client wished to release the collateral to be able to realise its full value. VEF provided the client with funds sufficient to pay off the loan and thereby release the collateral. The client then sold the collateral via VEF, releasing €3 million of cash.

Repo for capital equipment financing - €11 million
A client needed bridge financing to purchase capital equipment. VEF executed the sale and repurchase of over 700,000 EUAs to provide two years of funding before the equipment was refinanced.

EUA loan to finance purchase of fuel for winter season - €2 million
A client operating a municipal district heating plant needed to purchase fuel before the winter heating season. However, it did not have funds available. VEF arranged for the lending of EUAs to the client which they then sold to raise the necessary funds. The loan was duly repaid when the client received fresh allowances on allocation.

EUA online auctions
We executed three online auctions of EUAs for the Hungarian and Lithuanian governments in 2006 and 2007, selling 1.7 million EUAs in all. These were the first ever online auctions of EUAs by governments. Since then we have developed a more modern and robust auction platform which corporations and governments can use for both buying and selling.

We set up our business in 1998 to catalyse change in Central Europe by bringing capital to environmental markets there.

In 2001 we were one of the first companies in the world to focus on emissions trading. We saw that the emissions markets offered a brand new way of attracting investment to projects. Starting with project development services under the Kyoto Protocol, we expanded into emissions trading consulting and brokerage to serve our growing client base.

Now we operate one of the largest independent emissions brokerages in Europe and are expanding steadily into biofuels and energy certificates.