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he introduction of the EU EmissionsTrading System has created a challengefor businesses to keep their competitiveadvantage and comply withenvironmental legislation. The Consus Group is at handto help companies re-assess and redevelop theirenvironmental strategies and turn the challenges intofinancial opportunities.The Consus Group was formed to take advantage of theglobal emissions trading system created by the Kyotoprotocol in 1997. However, emissions trading is only thetip of the iceberg, as Consus has much more to say andoffer. It provides a holistic approach to the managementof environmental protection in business, with aparticular emphasis on the financial aspects of it. The Group's areas of expertise include: Emissions management: implementing the rightmonitoring methods and changes in technologicalprocesses that reduce greenhouse gas emissions orgenerate more "green energy".Energy management advice:on the demand side: we helpimprove energy absorption by consumers (WhiteCertificate system); on the supply side: we cover energyproduction from renewable sources, transition to low-emission fuels and cogeneration (combined heatand power), energy import/export and productionlimitations. The Consus Group offers its know-how andmany years of experience to provide businesses withprofessional advice on legal solutions and their impacton business functions. It is a basis on which companiescan assess potential hazards and find ways to limitthem. Armed with a successful combination ofcapabilities and experience of its consultants andtraders, the Consus Group provides a comprehensiverange of services, including: Energy buying costsoptimisation; Environmental audits; Commodity marketdata and analysis; Operations connected with financingpro-ecological initiatives; Energy management systems.Implementation of the Kyoto Protocol objectives: Takingpart in the Clean Development Mechanism and JointImplementation investments in order to obtain CERsand ERUs; investment in CCS limiting emissions;changing heating plants to cogeneration (combinedheat and power). Emissions trading, utilisation ofderivative instruments. This includes spot, forward andswap transactions on OTC exchange and market. Themain goal of this is to collect enough allowances tocount up emissions in enterprise.Weather derivatives: Consus, a pioneer in the Polishweather derivatives market, offers co-operation in the areaof design and implementation of weather protection,which effectively covers all financial losses caused byweather volatility. Risk assessment and training in thefield of weather is Consus's area of expertise. In the field of weather derivatives the Group provides:data essential to weather exposure analysis andconducts analysis; measurement of weather riskexposure - based on the company's financial data andweather data; presentation of risk transfer methods (as well as derivative or insurance) adjusted to acompany's needs, considering budget for hedging.This includes vanilla derivatives, which take intoaccount changes in weather conditions, and quanto-type derivatives, which aim to enhance derivatives'effectiveness and combine price and volumetric riskmanagement; transaction supervision;All analysis carried out by Consus is based on highlyadvanced statistical methods supported by specialisedMANAGING EMISSIONS CAN BE EASY066EMISSIONS TRADINGTTHE CONSUS GROUP

EMISSIONS TRADING067computer software. Thanks to these factors, theavailable hedge is highly effective. This year ConsusGroup takes pride and responsibility in co-organising,together with Weather Risk Management Association,WRMA's Annual European Meeting, which will be heldin Krakow on 16-17 September 2010.TO SUM UPAccurate planning in terms of management of theenvironmental protection mechanisms eliminatesexposure to unit price volatility. Even though the futureprice ratio is unknown, the decision about hedgingagainst risk guarantees a price which is acceptable andreasonable. This is a two-way benefit, on one hand ithedges the unit price; on the other it guarantees thesize of the investment financing source.Energy, fuel and allowance prices (currently thoseassociated with EU ETS, but soon Green Certificatestoo) and weather conditions are all strongly correlated.The Consus Group serves as a tool and a solution to help itsClients maximise the opportunities that arise throughthe financial mechanisms adopted to achieve anenvironmental target and reduce the risk of failure. nAbove Left:MaciejWisniewski, Founder andChairman of the Board ofManagement, TheConsus Group