m2m to acquire Carbon Planet for emissions trading

James Riley
Monday, 20 July 2009 17:11

Business IT - Technology

Australian Stock Exchange-listed digital media and telecommunications firm m2m Corporation is stepping out of its technology niche, announcing plans to acquire Carbon Planet, a local leader in the emerging carbon credits trading sector.

As part of its merger proposal, m2m will issue about 464 million shares to Carbon Credit investors, and raise about $10 million in working capital at 20 cents per share.

Carbon Planet, an unlisted public company, is a provider software and services for greenhouse gas emmissions assessment and carbon management , as well as scientific analysis and consulting services that ‘create’ carbon credits from valid projects, principally in developing economies.

The company provides scientific certification to rainforest owners enabling them to be awarded with tradeable carbon credits. Carbon Planet then sells the credits on owners behalf, enabling the locals of the rainforest to receive an ongoing revenue stream – thus protecting the forest from exploitation.

This new trading mechanism is called the Reducing Emissions from Deforestation and Degradation (REDD) and have been used as credits by governments and enterprises to offset their own emissions.

Last year, m2m says about US$126 million worth of these voluntary credits were traded – a opportunity the company says will jump to US$14.2 billion by 2020 depending on carbon credit price movements.

Both companies have said m2m’s buiness partners in north Asia – especially China – would assist Carbon Planet in developing further projects in the region.

Carbon Planet has already secured a series of exclusive contracts to develop REDD projects in Asia region. The methodology and verification processes for the first projects are at an advanced stage.