LONDON, July 1 Louis Redshaw, the former head of carbon, coal and iron ore trading at Barclays investment bank, has launched a London-based advisory firm to help companies manage their risks stemming from carbon trading.
Redshaw Advisors, which will also provide carbon finance for client firms, is banking on a return to growth for the world's emissions trading markets, many of which have been hit by low prices and falling demand in the wake of the global economic crisis.
"This is an exciting time for the carbon markets because for once all the news is about growth or potential for growth and the time is right to prepare for this," Redshaw said in an emailed statement.
Redshaw said the firm would focus initially on the European carbon market, the world's largest, before moving into the United States and Asia.
He has hired Margaret-Ann Splawn, a former trader with London-based B&A Capital and DASCO Partners, as head of sales, and former Barclays colleague Rachel Caffarate as head of legal.
Redshaw Advisors also announced a partnership with energy market analysts Energy Aspects and the firm's lead carbon analyst Trevor Sikorski, also a former Barclays colleague.
Redshaw and Sikorski parted ways with Barclays in early 2013 as the bank cut its emissions trading and analysis team, before it closed its European and U.S. energy trading businesses earlier this year.
Pollution permit prices across the world's carbon markets have plummeted since 2008, partly because of the financial crisis but also because governments have stopped short of committing to more ambitious action in cutting greenhouse gas emissions.
However, carbon prices in the European Union are on the rise as the bloc reforms its market, while regional and state-level trading programmes in the United States are poised for expansion under President Barack Obama's proposed emissions regulations. (Reporting by Michael Szabo; editing by Tom Pfeiffer)