Nextgen
Nextgen is Australia’s largest broker of environmental commodities and one of the country’s leading providers of services to the energy trading industry.
It provides a marketplace for wholesale clients to buy and sell contracts in Australian electricity and the fast growing green energy and carbon-based products in both over-the-counter (OTC) and Futures (Sydney Futures Exchange) markets.
Several factors set Nextgen apart from other energy broking companies
- Nextgen is the only Australian owned broking company in this market;
- Nextgen brokers take the time and have the expertise to understand each client’s business, helping them implement strategies to achieve their energy aims;
- Nextgen specialises in the brokerage of energy and environmental credits. It is not an arm of a larger brokerage company with widespread interests;
- Nextgen is the only energy broking company with key staff that have worked as energy broking and trading managers for major energy companies; and
- Nextgen personnel have a full understanding of the energy and environmental regulations that govern every state and territory of Australia. It can assist companies navigate through the legislative mire of different jurisdictions.
Nextgen offers
Transaction services (brokerage):
- Domestic energy market (“black” brokerage);
- Carbon and renewable energy assets locally and globally (“green” brokerage).
Advisory services:
- Local and international clients;
- Advice to clients about managing carbon credits and obligations.
Nextgen’s client base includes
- Domestic and international banks and other financial institutions;
- Energy generators, distributors and retailers;
- Commercial and industrial companies; and
- Government.
Given the increasing importance of tackling climate change and the introduction of domestic and international legislation and initiatives, the value of environmental commodities traded will increase significantly (see graph below).
Nextgen is perfectly positioned to prosper in this market.
Forecast value of Australian environmental commodities traded (A$m)
Source: Clean Energy Council and *Nextgen management estimates
What are “environmental commodities”?
The emergence of emissions trading schemes throughout the world has created a new asset class – environmental commodities. These are tradeable instruments derived from government regulatory systems for specified emissions, whether in practical application today, or under design.
The main types of instruments are carbon credits each representing a reduction of atmospheric CO2 and Renewable Energy Certificates (RECs) created by generating electricity from mandated renewable sources (solar, wind, hydro etc).
According to the World Bank report, “State and Trends of the Carbon Market 2007” (May 2007), the global carbon market was worth US$30 billion in 2006, three times greater than the previous year. Included in this was the NSW emissions market, which was valued at US$225 million in 2006. In addition, over 11 million RECs were traded in Australia during 2006, with an estimated market value of $350 million.
An introduction to carbon trading
