Latest Company Announcements

Search Loading
Sectors: Green/Clean Technology, IPO

Carbon Pollution Reduction Scheme Opportunities for investors in clean technology and Tax-free investment through an ESVCLP

The introduction of the Carbon Pollution Reduction Scheme (CPRS) as outlined in the Federal Governments Green Paper, and the resulting demand that will be placed on emitters to find innovative clean technology (cleantech�) solutions, will create many opportunities for investors and particularly for the venture capital sector.

Carbon Pollution Reduction Scheme Opportunities for investors in clean technology and Tax-free investment through an ESVCLP 13 November 2008

The introduction of the Carbon Pollution Reduction Scheme (CPRS) as outlined in the Federal Government’s Green Paper, and the resulting demand that will be placed on emitters to find innovative clean technology (‘cleantech’) solutions, will create many opportunities for investors and particularly for the venture capital sector. In this article we discuss the reason for the almost certain increase in demand for cleantech solutions that will follow implementation of the CPRS, and consider the investment vehicle structure – the Early Stage Venture Capital Limited Partnership – most suitable for the venture capital sector’s entry into investment opportunities fuelled by climate change and the CPRS.

 

Demand for cleantech solutions to escalate

 

The production of carbon as part of any commercial process will soon have a quantifiable cost as emitters acquire permits, or pay penalties under the CPRS where emissions exceed permitted levels. As a result, the prices of goods and services which rely on processes which produce high levels of carbon will increase, and the competitive advantages that currently exist in the market may change profoundly. The Federal Government’s goal to reduce the level of carbon production by 60 per cent below 2000 levels by 2050 means the way we produce, price and buy will all need to change.

Cleaner processes which produce less carbon pollution will create more competitive goods and services by avoiding the additional costs of CPRS permit acquisition. As a result, there will be an increasing number of opportunities for the creation of clean technologies aimed at reducing the production of carbon as part of commercial processes, where the cost to business of the solution is less than the cost of CPRS permit acquisition.

The market pricing mechanisms of the CPRS, the introduction of a cap on emissions for the first time and the limited availability of CPRS permits are likely to result in a relatively high initial market value for CPRS permits. Emitters will need to either compete with each other at auction or on the secondary market to purchase CPRS permits which cover the level of carbon pollution they emit, or seek to reduce those emissions in some other way.


Those emitters with the greatest need (and the deepest pockets) will set the price. Emitters who are unable to acquire the CPRS permits which they need, will have little choice but to reduce their emissions or face legislative penalties. In the meantime, innovators are assessing the opportunities for solving the carbon reduction problem and seeking to produce solutions which offer business a more cost effective alternative to CPRS permit acquisition.

 

The level of innovation in the ‘cleantech’ space must increase as demand, driven by the costs of the CPRS, forces business to find solutions. This demand will create investment opportunities for investors, and will require investors to consider the alternative structures available to them to make their investment.

 

The Early Stage Venture Capital Limited Partnership (ESVCLP) structure is a structure that would be perfectly suited to investment in clean technology innovation in many situations.

Tax-free investment through an ESVCLP

Generally, the ESVCLP offers investors a tax-free return for ‘limited partners’ and ensures the carried interest of the ‘general partner’ is on capital account where the investment rules of the program are met. An ESVCLP may have a fund size of up to $100 million and may invest in entities whose gross asset value is up to $50 million as shown on its last audited accounts. Arguably, neither the maximum fund size of an ESVCLP nor the maximum gross asset value of investee targets is inconsequential.

 

The ESVCLP must divest itself of an investment whose gross assets (not market value) reach $250 million. The divestment rule has been criticised as a burdensome restriction on the divestment flexibility of a general partner, however, market analysis reveals that a substantial majority of initial public offerings (IPOs) which occurred in 2007 were capitalised at below $250 million (Survey of Sharemarket Floats in 2007, PricewaterhouseCoopers Corporate Finance).

 

In addition, the ESVCLP legislation contains no restrictions on the transfer of such an investment into a ‘companion fund’ in circumstances where the fund wishes to retain the investment. Whilst there are costs associated with such a transfer, the tax‑free gain made on the investment up until that time and the future potential growth of the investment (evidenced by the desire to retain the investment) may well outweigh this cost.

 

For further information in relation to how to take advantage of the clean technology opportunity or on the details of the ESVCLP program contact:

 
John Cannings, Partner

Phone: +61 2 8266 6410

john.cannings@au.pwc.com

Steven Maarbani, Senior Associate

Phone: +61 2 8266 6834

steven.maarbani@au.pwc.com

 

About Wholesale Investor

Wholesale Investor has been created to be the information portal of the private space. Through a high quality magazine, functional website and investor opportunity evenings, private companies will be able to showcase their company to potential investors, or CEO’s seeking acquisition targets. Combined they have access to over $50 Billion in investable funds.

To view the Investment Opportunities on our website, or explore your companies potential to Raise Capital through our Magazine, go to www.wholesaleinvestor.com.au

 

CEO Interviews

Search Loading
Scott Power - Brisbane Capital Showcase

Scott Power is a Senior Analyst with RBS Morgans

Steve Baxter Presentation from the Brisbane Capital Sho...

Steve Baxter Presentation from the Brisbane Capital Showcase

Biosana Pty Ltd - Brisbane Capital Showcase Investor Pr...

Biosana Pty Ltd - Brisbane Capital Showcase Investor Presentation

Chip Tyre - Investor Presentation Brisbane Capital Show...

Chip Tyre - Investor Presentation Brisbane Capital Showcase

Mesynthes - Investor Presentation Brisbane Capital Show...

Mesynthes Limited - Investor Presentation Brisbane Capital Showcase

Jumbo Interactive Investor Presentation (ASX:JIN)

Just as other industries have moved successfully onto the Internet (Airfares, Employment, Accommodation, Real Estate, et...

Easylodge Infrastructure Services Investor Presentation

Easylodge was founded in 2006 to provide software and infrastructure services to the non-mortgage finance industry, and ...

Phylogica (Investor Presentation)

Phylogica Limited (ASX: PYC) is a biotechnology company based in Perth, Australia and Oxford UK, with a world-class drug...

Australian Real Estate Lottery (CEO Interview)

The Australian Real Estate Lottery model is a unique mixture of gaming and property to create a financing tool to acquir...

Easylodge Infrastructure Service (CEO Interview)

Easylodge was founded in 2006 to provide software and infrastructure services to the non-mortgage finance industry, and ...

Wholesale Investor Capital Showcase 2012

Date: Wednesday 4th April, 2012 Location: PwC Offices Brisbane, Riverside Centre Wholesale Investor and AusBiotech w...

Investment Administration Pty Ltd (CEO Interview)

Investment Administration (InvestAdmin) provides a complete, robust, scalable, technology based solution for the end-to-...

Rubber Ducky Defence (CEO Interview)

Rubber Ducky Defence is the developer of a powerful, low-cost maritime platform and weapons system which has the potenti...

BioPower Systems (CEO Interview)

BioPower Systems is focused on developing advanced technologies which convert the energy in waves and tides to grid-read...

Qanda Technology Limited (CEO Interview)

Qanda Technology owns 2 operating businesses. - Marketboomer provided online procurement services and technology to h...

PwC Private Business Barometer

Welcome to the ninth edition of the PwC Private Business Barometer.

Exa Web Solutions (CEO Interview)

Exa was founded in 2000 and has since become Australia's number one online marketing and web solutions company. Through ...

WH Medical Pty Ltd (CEO Interview)

Gold Coast Accident & Medical Clinic (A&MC) is a private emergency clinic designed to take direct pressure of the public...

Elemental Energy Technologies Ltd (CEO Interview)

Elemental Energy Technologies Ltd (“EET”) has been formed to commercialise its breakthrough third generation marine ...

Cleantech and Renewable Energy Showcase

Wholesale Investor in conjunction with our Principal Support Partners, PwC are proud to host the Cleantech and Renewable...

Immuron Ltd (CEO Interview)

Immuron Ltd is a biopharmaceutical development company with a versatile technology platform that has allowed it to devel...

Palace Resources (CEO Interview)

Palace Resources (ASX Code: PXR) is progressing due diligence on the Lumpo coal project (“Lumpo Project”) in West Su...

BioDiem Ltd (CEO Interview)

BioDiem is a vaccine company developing vaccines for both treatment and prevention of disease. The leading technology is...

Eastern Harmony New Zealand Ltd (CEO Interview)

EHNZ has commenced business as a wholesaler/distributor of NZ milk powder products in the Asia Pacific region

Equiome Pty. Ltd (Investor Presentation)

Equiome is a specialist financier of all aspects of large corporate software projects, which allows companies to realise...

Cynergy Health (Investor Presentation)

Our objective is to grow a broad based consumer health company by developing or acquiring high potential brands or produ...

Bizpanel Limited (Investor Presentatio)

The Australian Franchise Industry is a $138 billion industry featuring 1,025 franchisors and 69,900 franchise businesses...

Exa Web Solutions (Investor Presentation)

Exa is Australia’s largest Online / Apps / Web / Mobile company, with over 1000 clients. Exa generates significant ...

Elemental Energy Technologies LTD (Investor Presentatio...

Elemental Energy Technologies Ltd (“EET”) has been formed to commercialise its breakthrough third generation marine...

Qanda Technology Limited (Investor Presentation)

Qanda Technology owns 2 operating businesses. - Marketboomer provided online procurement services and technology to h...

Mint Wireless Limited (Investor Presentation)

Mint Wireless Limited (Mint) is a global payments and mobile transactions company listed on the Australian Securities Ex...

Photonz Corporation Limited (CEO Interview)

Photonz is a world-leader in the production of the omega-3 compound “EPA” by fermentation for high purity, pharmaceu...

Benitec Ltd (CEO Interview)

Benitec Limited is a publicly listed (ASX:BLT) biotechnology company developing novel human therapies based on a transfo...

Bizpanel Limited (CEO Interview)

The Australian Franchise Industry is a $138 billion industry featuring 1,025 franchisors and 69,900 franchise businesses...

Intellect Projects

Intellect Projects is a property developing company, located within the inner suburbs of Melbourne, specialising in qual...

Mint Wireless Ltd (CEO Interview)

Mint Wireless Limited (Mint) is a global payments and mobile transactions company listed on the Australian Securities Ex...

Folkestone (CEO Interview)

Folkestone is a real estate investment, development and funds management company listed on the ASX (Code: FLK).

Jubilent Health Aust. Ltd (CEO Interview)

Based in Australia, Jubilent Health has an international focus that allows us to manufacture and retail pharmaceutical p...

Diamond Energy (CEO Interview)

Established renewable/low-carbon electricity integrated “gen-tailer” seeking to accelerate expansion.

Xenexus Pharmaceuticals Pty Ltd (CEO Interview)

Xenexus is undertaking R & D on existing drugs in new indications to secure new use patents on these re-profiled drugs.

Sun Connect (CEO Interview)

Sun Connect Pty Ltd is a wholly privately owned Australian importer, designer and installer of solar power components. S...

Third Link Growth Fund (CEO Interview)

The portfolio manager of the Third link Growth Fund is funds management industry stalwart Chris Cuffe, who has drawn on ...

Future Capital Development Fund (CEO Interview)

Future Capital Development Fund Limited is a pooled development fund (PDF). As a PDF, the Company will actively seek to ...

KFSU Limited (CEO Interview)

Established in 2006, KFSU Limited ACN 119 778 326 is a food ingredient manufacturing company creating natural products f...

Equiome (CEO Interview)

Equiome is a specialist financier of all aspects of large corporate software projects, which allows companies to realise...

Special Phage Holdings (Investor Presentation June 2011...

Special Phage Holdings (SPH) is an innovative biopharmaceutical company focused on developing novel antibacterials in re...

Wholesale Investor (Investor Presentation - June 2011)

Wholesale Investor is Australia's largest private investment platform directly connecting high net worth and professionl...

Sun Connect Pty Ltd (Investor Presentation - June 2011)

Sun Connect Pty Ltd is a wholly privately owned Australian importer, designer and installer of solar power components. S...

Future Capital Development Fund (Investor Presentation ...

Future Capital Development Fund Limited is a pooled development fund (PDF). As a PDF, the Company will actively seek to ...

Colmax Glass (Investor Presentation - June 2011)

Colmax Glass has rapidly become Australia’s premier post-consumer glass recycler due to its ability to transform recyc...

Medivac - CEO Interview

MediVac was incorporated in 1997 to commercialise patented technology for the treatment of biological waste that would r...

Colmax Glass Recyclers

Colmax Glass has rapidly become Australia’s premier post-consumer glass recycler due to its ability to transform recyc...

Flinders Exploration - Melbourne Investor Presentation

FEX is a new mineral development company with gold resources and a copper Exploration Target ready to commence pre-feasi...

Minotaur Exploration - Investor Presentation

Minotaur specialises in application of cutting-edge geophysical techniques to locate virgin mineralisation deep below th...

Latin Resources Limited

Latin Resources Limited is a mineral exploration company focused on creating shareholder wealth through the identificati...

Audio Pixels Limited - Investor Presentation

Audio Pixels Limited was founded in July 2006 has developed a revolutionary technological platform for reproducing sound...

Virax Holdings Limited

Developing therapeutics for autoimmune diseases, AIDS, cancers, infectious diseases based on patented Co-X-Gene platform...

Deasil Management Group

Philip Weinman could be Australia’s ultimate serial entrepreneur. After starting and selling seven fast-growing busine...

Colmax Glass - Investor Presentation

Colmax Glass has rapidly become Australia’s premier post-consumer glass recycler due to its ability to transform recyc...

Third Link - Investor Presentation

The opportunity to invest in a professionally managed investment fund, with all fees received by the investment manager,...

Commissioners Gold - Investor Presentation

I have pleasure in presenting to you an offer to subscribe for shares in Commissioners Gold Limited, a new gold explora...

Biogenerics Australia - Investor Presentation

Biogenerics Australia (BGA) was established in 2005 to introduce cheaper generic forms of biological drugs into Australi...

Virtual Gaming Worlds (Investor Presentation)

Are developing a unique online casino operation, enabling players to interact via Social Network Gaming and Massively Mu...

Equiome (Investor Presentation)

Equiome is a specialist financier of all aspects of large corporate software projects, which allows companies to realise...

Global Digital Networks (Investor Presentation)

l Digital Networks is an innovative Information Services and Technology company that is leading the revolution in deleiv...

Advanced Braking Technology (Investor Presentation)

Advanced Braking Technology Ltd has commercialised an innovative and patented enclosed oil cooled braking system that is...

Mesynthes (Investor Presentation)

Mesynthes is a soft-tissue reconstruction company using its proprietary Endoform technology to develop regenerative tiss...

Jumbo Interactive (Investor Presentation)

Jumbo Interactive Ltd is an innovative and successful online lottery business that has created the hugely popular Oz Lot...

Magma Mines

Magma Mines is wholly focused on exploration of mineral resources in Fiji. For a number of years Magma has held explorat...

Phylogica Limited - ASX Small Cap Showcase

ylogica Limited (ASX: PYC) is a biotechnology company based in Perth, Australia and Oxford UK, with a world-class drug d...

Biogenerics Australia

Biogenerics Australia Pty Ltd (BGA) was established in early 2005 by Mr Peter Simpson and has as its primary commercial ...

Progen Pharmaceutical (Small Cap Showcase 2011)

Progen Pharmaceuticals Limited (Progen) is a dual listed Australian (ASX:PGL & US OTC: PGLA) clinical stage oncology dru...

Virax Holdings Limited

Virax Holdings Limited (Virax) is a biopharmaceutical company. The Company is engaged in the discovery and development o...

Viralytics Limited (Small Cap Showcase 2011)

Oncolytic virotherapy makes use of the cancer destroying capabilities of a range of benign viruses. The potential of o...

EcoQuest (Small Cap Showcase 2011)

After two years or extensive research, EcoQuest Limited is poised to commercialise its 93% biodegradable nappies and com...

Circadian Technologies (Small Cap Showcase 2011)

Circadian Technologies Limited (Circadian) is an Australia-based company. The Company’s principal activity is to devel...

Advanced Braking Technology

Advanced Braking Technology Ltd has commercialised an innovative and patented enclosed oil cooled braking system that is...

Phosphagenics (Small Cap Showcase 2011)

Phosphagenics is a completely advanced company with a platform delivery technology currently developing products for hum...

Eastland Medical Systems Limited (Small Cap Showcase 20...

Eastland Medical Systems Ltd (EMS) is an Australian based Biotechnology licensing company. Our focus is the identificati...

Gold Road Resources Limited (Small Cap Showcase 2011)

Gold Road Resources Limited is developing its 100%-owned Yamarna Gold Project, a 3,200km2 tenement covering the majority...

Resonance Health (ASX:RHT)

Resonance Health develops unique quantitative MRI image analysis technologies for the diagnosis and monitoring of human ...

Jumbo Interactive (Small Cap Showcase 2011)

Jumbo Interactive (JIN) is an Australia-based company. It has two segments: Internet Lotteries, and Software Publishing ...

Phylogica Limited (ASX:PYC) - Reuters Insider

Phylogica is a public company engaged in the discovery and development of novel peptide-based biopharmaceuticals. Phylog...

Enerji Limited (ASX:ERJ)

Enerji is a Perth-based emerging green power utility specialising in the provision of Opcon Powerbox waste heat conversi...

Gold Mines of Peru (ASX:GMO) -Thomson Reuters Insider

Gold Mines of Peru has a two-pronged strategy to secure, develop and exploit advanced gold and silver assets in central ...

KarmelSonix (ASX:KSX) - Thomson Reuters Insider

KarmelSonix (KSX) is a commercial stage, ASX listed, medical device company that manufactures and sells products that as...

EcoQuest (ASX:ECQ) CEO Interview - Reuters Insider

After two years or extensive research, EcoQuest Limited is poised to commercialise its 93% biodegradable nappies and com...

Global Digital Networks Pty Ltd - Thomson Reuters Insid...

Global Digital Networks is an innovative Information Services and Technology company

Cloncurry Metals Limited (ASX:CCU) -Thomson Reuters Ins...

Cloncurry Metals Limited has excellent exploration ground in Queensland, Australia and in the state of Michoacan, Mexico...

Carbon Conscious Limited (ASX:CCF) - Thomson Reuters In...

Carbon Conscious is Australia’s leading carbon forest sink project developer.

Progen Pharmaceuticals (ASX:PGL) - Thomson Reuters Insi...

Progen Pharmaceuticals Limited (Progen) is a dual listed Australian (ASX:PGL & US OTC: PGLA) clinical stage oncology dru...

Viralytics (ASX:VLA) - Thomson Reuters Insider

The development of targeted cancer therapies using oncolytic viruses to detect, invade and destroy cancer cells. Oncolyt...

Patrys Limited (ASX:PAB) - Thomson Reuters Insider

Patrys develops natural human antibody-based treatments for cancer.

Rox Resources (ASX:ROX) -Thomson Reuters Insider

Rox owns the Myrtle project in the NT, just south of the McArthur River mine, where a resource of 43.6 million tonnes gr...

EcoQuest (ASX:ECQ) - Thomson Reuters Insider

After two years or extensive research, EcoQuest Limited is poised to commercialise its 93% biodegradable nappies and com...

Minemakers (MAK) - Thomson Reuters Insider

Minemakers Limited (ASX Code: MAK), since its inception in 2004 and listing in October 2006, has aimed to acquire major ...

Vocus Communication Ltd (ASX:VOC) - Thomson Reuters Ins...

Vocus Communications Ltd. (ASX:VOC) is a pioneering, newly ASX- listed, wholesale voice and data provider, backed by Inv...

Because Group International

Because Group International Ltd (Because Group) is a global digital media distribution company with operations in the US...

Anteo Diagnostics - Thomson Reuters Insider

Anteo has demonstrated further applications of the technology in several other large market segments such as clinical as...