Features, November 1999 WEATHER DERIVATIVES BOND BUYERS LOOK TO THE SKY The long-awaited issue of the first bonds linked to weather was not without its problems. But analysts are confident that this ground-breaking structure won't be the last. Mark Nicholls reports on the prospects for this new asset class, and exclusively reveals the structure underlying Koch Energy Trading's innovative securitisation of part of its weather derivatives portfolio. More... PROJECT FINANCE UNCERTAINTY PLAGUES UK RENEWABLES Concerns are mounting in the UK's renewable energy sector that the government's plans for electricity trading reform could undermine the ability to attract financing for new projects - and the development of new renewable energy technologies, Mark Nicholls discovers. Some experts are warning that without a radical rethink, it will prove impossible for the UK to meet the government's target of generating 10% of its electricity from renewable sources by 2010. More... GREENHOUSE GASES EPA TARGETS METHANE EMISSIONS At 21 times the potency of CO2, methane is an important element in the battle to slow global warming. Geneive Dupont reports on a new study from the US Environmental Protection Agency argues that once the cheapest CO2 reductions have been obtained, it will be more effective and more cost efficient for the US to target methane emissions. HOW I SEE IT CARBON DEALS BREAK RECORDS Two carbon deals in November have broken new ground in emissions trading, and are building a framework for a fully-fledged market. Richard Sandor examines the mechanics and the motivations behind the October deal between ZAPCO and Ontario Power generation. CORPORATE PROFILE SWISS RE'S GREEN RETHINK The Swiss reinsurer is taking environmental issues seriously - and has built a group-wide management system to address them. Mark Nicholls talks to the corporate environmental management team, who explain how the system improve's the firm's environmental information sharing, bringing advantages to both Swiss Re's asset investment and reinsurance arms. MARKET VIEW A STORY OF SUCCESS Dan Chartier, treasurer of the Emissions Marketing Association, and emissions marketing manager at PG&E Generating, looks at the highly successful US Acid Rain Program. Trading activity has grown dramatically since 1994. RISK MANAGEMENT MANAGING THE RISKS IN KYOTO PROJECTS Although the Kyoto Protocol is far from ratified, investing now in Kyoto-related projects could reap rewards - but it also raises unique risks. Justin Mundy, a policy and finance advisor with the Carbon Team, explains who should be considering investing in Joint Implementation and Clean Development Mechanism projects, what the benefits are, and how to manage the risks. EMISSIONS TRADING TRADING PROMISES JOBS BOOST FOR AUSTRALIA The Australian government overlooked the environment when it recently reformed business taxation - which missed an opportunity to factor in emissions trading. The Australia Insitute's Clive Hamilton argues that a domestic emissions trading scheme could create jobs and abolish payroll tax. FOR THE FULL STORY EVERY MONTH, SUBSCRIBE TO ENVIRONMENTAL FINANCE, OR CONTACT info@environmental-finance.com FOR OUR BACK ISSUES SERVICE