Email
PrintMay 22, 2009
J.P. Morgan's Global Commodities business received three awards from Energy Risk magazine in the categories of Electricity U.S., Precious Metals, and Innovation of the Year.
The innovation award won by the Environmental arkets business was related to an efficient cook-stoves project stemming from the bank's purchase of ClimateCare last year. By replacing less energy-efficient stoves, the group hopes to curb carbon dioxide output in Uganda by about 1 million metric tons through 2017.
The stoves, which cost about $8 each, take about four months to pay for themselves because they cut charcoal costs for users. So far, 42,000 have been sold. The stoves reduce demand for non-renewable wood, as well as greenhouse gas emissions from the charcoal making process, which is why they attract credits. Tom Morton, head of credit origination in Africa for J.P. Morgan, told Bloomberg News recently that similar projects might reduce production of the heat-trapping gas by 100 million tons in Africa alone.
The credits generated are mostly being sold to Land Rover. The environmental markets business, through ClimateCare, is working with Land Rover to help its customers offset emissions related to their vehicles. For instance, in Britain a customer would receive offsets for the first 45,000 miles of travel. Emissions from the assembly plant of all vehicles are also being offset.
In an article related to the awards, Energy Risk said J.P. Morgan had won the award for precious metals house of the year in recognition of the strength and sophistication of its franchise, adding that despite volatile market conditions in 2008, its team consistently found ways to serve customers' changing needs.