EnviroPath

EnviroPath Upcoming Auctions and Notices:

March 24, 2017: EnviroPath Market Update – Spring 2017
Aug 31, 2016: Mock Auction to be held September 7, 2016
Aug 5, 2016: Alberta Offset & EPC Transaction Workshop – August 30, 2016
Aug 5, 2016: Mock Auction to be held August 31, 2016
Aug 5, 2016: Mock Auction to be held August 17, 2016

EnviroPath Auction information

EnviroPath auctions specialize in spot environmental commodities, including Alberta Greenhouse Gas (“GHG”) offsets and Alberta Emission Performance Credits (“EPCs”). EnviroPath auctions use a competitive bidding process which encourages liquidity and delivers price transparency in the GHG offset and EPC spot markets that have historically been opaque. By participating in an EnviroPath auction, buyers and sellers benefit from seamless transactions using standardized legal agreements that will significantly reduce, or eliminate, the time and cost of doing a straight bilateral transaction.

The launch products for the EnviroPath auction platform are Alberta GHG offsets and EPCs that can be used to meet the compliance obligations of the Specified Gas Emitters Regulation (“SGER”).

Alberta Climate Change Guidelines for Specified Gas Emitters Regulation (“SGER”)

Alberta GHG Offsets and EPCs

Alberta GHG offsets and EPCs are a key component of the Alberta SGER program. Large Final Emitters (>100k t/CO2e/annum) can use GHG offsets or EPCs for up to 100% of the Alberta compliance obligation. GHG offsets and EPCs are a lower cost alternative to making payment into Alberta’s Climate Change and Emissions Management Fund. The Fund’s contribution price is set at $20/tonne for 2016 and $30/tonne for 2017. To date, offsets and EPCs have traded in the bilateral market at a discount to the Fund price. SGER offsets and EPCs can only be generated from Alberta based projects and are considered revocable licenses.

EnviroPath Auctions – powered by NGX TradePath

NGX TradePath is an established, browser based auction system used extensively in the Alberta Power market both in the Alberta Ancillary Services market as well as Alberta procurement auctions as part of the EPSP. NGX TradePath has been configured to host the EnviroPath auctions.

EnviroPath Reporting

Customers that have signed up to participate in EnviroPath auctions will have access to historical system reports including detailed trade information, tick-by-tick order tracking as well as summarized auction information (e.g. auction duration, volumes and weighted average prices). These details will provide full visibility into the auction as well as clear price signals to the market and participants. Reports can ensure accurate deal management and reporting for both internal and external stakeholders.

  • New Customer Sign-up

    The following is the list of steps in order to become a participant in the EnviroPath Auction market:

    • Meet the minimum qualification requirements to participate as either seller or buyer
    • Obtain and review the Auction Rules, Hosting Agreement, Participant Agreement, and Purchase and Sale Agreement
    • Execute the Participant Agreement and/or Hosting Agreement
    • Receive EnviroPath platform user ID and training
    • Participate in auctions as desired, there is no minimum commitment.

  • Minimum Requirements

    To participate in the auctions as a buyer, an entity must meet the following requirements:

    To participate in the auctions as a buyer, an entity must meet the following requirements:
    • be considered a Large Final Emitter in Alberta; or
    • have an SGER compliance obligation in Alberta; or
    • have a minimum net worth exceeding CAD $5 million; or
    • have total tangible assets exceeding CAD $25 million.

    WattEx will review each applicant, at the time of application, to ensure the applicant satisfies the requirements to participate as a buyer. Please note that by meeting the buyer minimum requirements you qualify as a seller subject to execution of the Hosting Agreement.

  • EnviroPath uses standardized legal agreements with all the firms that participate on EnviroPath. These agreements outline the terms and conditions for conducting business on the EnviroPath auction platform. Each applicant must submit an executed Participant Agreement (please note that you may register as both a buyer and seller). The complete suite of forms, including the Participant and Hosting agreements will be provided upon request :

    Execute Participant Agreement This is the agreement for entities wishing to purchase in the auction. It must be executed in order gain access to and participate in the EnviroPath auction platform.
    Review Auction Rules This document lays out the rules of the auction for all participants and is required to ensure that the auctions operate in a transparent, fair and efficient manner.
    Review Purchase and Sale Agreement This is the agreement that governs the purchase and sale of the Alberta GHG offsets or EPCs between a winning buyer and seller. This is a legally binding contract between a winning buyer and seller that is effective immediately upon close of an auction. WattEx is not a party to any purchase and sale agreement or any other agreement formed between a winning buyer and seller.
  • Minimum Requirements

    To participate in the auctions as a seller, an entity must meet the following requirements:

    To participate in the Alberta offset auctions as a seller, an entity must meet the following requirements:
    • be a developer, or a producer of environmental commodities (e.g. GHG offset or EPC developer); or
    • hold an SGER offset position

    WattEx will review each applicant, at the time of application, to ensure the applicant satisfies the requirements to participate as seller.

  • EnviroPath uses standardized legal agreements with all the firms that participate on EnviroPath. These agreements outline the terms and conditions for conducting business on the EnviroPath auction platform. Each applicant must submit an executed Hosting agreement (please note that you may register as both a buyer and seller on the platform). The complete suite of forms, including the Participant and Hosting agreements can be provided upon request :

    Execute Hosting Agreement This is the agreement for entities wishing to sell into a specific auction. It must be executed prior to gaining access to the EnviroPath system. Please not that an entity may be both a buyer and a seller on the auction platform but can only participate as either a buyer or a seller during the course of a single auction.
    Review Auction Rules This document lays out the rules of the auction for all participants and is required to ensure that the auctions operate in a transparent, fair and efficient manner.
    Review Purchase and Sale Agreement This is the agreement that governs the purchase and sale of the Alberta GHG offsets or EPCs between a winning buyer and seller. This is a legally binding contract between a winning buyer and seller that is effective immediately upon close of an auction. WattEx is not a party to any purchase and sale agreement or any other agreement formed between a winning buyer and seller.

To register for EnviroPath and/or for more information please contact enviropath@ngx.com or 403-974-1718.