UPDATE 2-Camco says made 'solid' start to year

* Ups independent verification of carbon portfolio

* Stock up over 4.5 percent

* Gross risk-adjusted carbon portfolio falls 9 pct

* Sees FY loss if no forward sale

(Updates with more detail)

LONDON, Aug 6 (Reuters) - UK-based carbon offset firm Camco International Ltd. (CAMIN.L) said it had made a "solid start" to the year and secured further independent verification of its carbon portfolio, sending its shares higher on Thursday.

"Camco has had a solid start to the year. Our projects continue to progress through the registration process... The next twelve months will be an exciting and successful time for our business," Jeff Kenna, chief executive, said in a statement.

By 1107 GMT, Camco shares had risen 4.55 percent to 22.2 pence.

On the downside, Camco reported an almost 9 percent fall in its risk-adjusted carbon credit portfolio to 92.7 million tonnes from 100.9 million, as of March 31.

Its Russian portfolio declined by 12 million tonnes of emission reduction units to 14 million, due to approval delays and validation bottlenecks.

Business in China was also affected by falls in industrial production and construction delays as project owners had difficulty securing financing.

"It [the trading update] is slightly forthright in saying there has been a decrease in some projects due to the decrease in industrial demand and ongoing problems in Russia, but there is nothing particularly exciting. The good thing about it is its candour," Gus Hochschild, analyst at Mirabaud, told Reuters.

The company said it would consider a further portfolio sale later in the year if carbon prices rise further, but in the absence of a forward sale it would likely post a full-year loss.

"If there is an increase in carbon prices and Camco is able to sell forward like last August, they could get another non-recourse payment which would have a dramatic bearing on its profits," Mirabaud's Hochschild added.

The group posted a 2.2 million euro pretax profit for 2008 after it made a 15 million euro forward sale.

Camco invests in clean energy projects, registering them with the United Nations under a Kyoto Protocol scheme that awards carbon offset credits for cutting greenhouse gases. The company also invests in projects under an unregulated, voluntary offset market.

Prices for offsets, called certified emissions reductions, traded at 12.81 euros a tonne on the European Climate Exchange on Thursday.

The company said its 30.9 million tonne portfolio of risked carbon offsets was through the critical stage of first independent verification, up 69 percent from March 31.

Its cash position was at 18.3 million euros at end-June.

Camco said its advisory division faced challenging trading conditions in the first half of the year and had cut staff by 11 percent.

The division has recently launched a software tool, Carbon Desktop, to help companies in Britain manage their carbon emissions reductions obligations.

Camco said it is still pursuing project and clean technology investment in China and the United States, and is evaluating a number of attractive opportunities requiring project finance. (Reporting by Nina Chestney; Editing by Simon Jessop)