Energy Brokers Embrace Green Finance

TFS Energy, which specializes in electricity and fossil fuel trades, has turned a green streak by launching a renewable and carbon finance division.

TFS Green Finance will provide clients with  banking and brokerage solutions for the environmental markets. The company will participate in financing of renewable energy projects, clean tech investing, and carbon credit swaps. The new division will be led by Matt Williamson, who had previously worked for the U.S. EPA. He will work on TFS' program that assists companies in developing carbon credit trading programs developed under the Kyoto Protocol as well as creating verified emissions reductions (VERs).

It is encouraging that the big trading houses are seeing an opportunity in financing renewable energy projects as well as in carbon trading. Just as Chevron and BP are diversifying by developing renewable energy, so too it seems will companies who have traded fossil fuels will be active in "green financing" programs. Renewable energy projects have unique requirements, so having the "big boys" work with them is essential for renewable energy's growth.

One the one hand, we can be skeptical of companies that have traded for years in commodities that have contributed to climate change determining what is or isn't a verifiable emissions reduction credit. On the other hand,  these same folks have extensive experience working with securities regulators, and if the carbon markets are to become massive and legitimate, then they will be an integral part of the mix.