Taking care of business means taking care of the environment.

As the world gets smaller, environmentalissues loom larger. How is your businessresponding? CantorCO2e offers the mostsophisticated solutions.

CantorCO2e understands the mechanicsof change, globally and locally. Whetheryou’re in power generation,manufacturing, municipal government,or another industry, we’ll help youmaximize your environmental credittrading position and create a win-winsituation for your business — and theenvironment.

“Throughout my dealings with Cantor

Fitzgerald, I have found their services to be

exemplary. Whether they are acting as

intermediary in a transaction or assisting

with the execution of agreements and clearing

of emissions trades, their work is always of

the highest order.”

–Brian Bales

VP Corporate DevelopmentRepublic Industries

“The Cantor Fitzgerarld Clean Air Auction

was a process we found extremely valuable

and helpful for our NOx RTC trading strategy.

It is flexible and easy to use. We got lightning

fast response and courteous service. Our

sales deadlines were met, and we achieved

the highest sales price as seen in the RECLAIM

market over the last two years.”

–Paul Yang

Alpha Therapeutic CorporationSenior Environmental Engineer

Environmental credit trading 101.The glass is half full.

How does environmental credittrading work?

How can you benefit?

Regulatory compliance is not a burdenbut an opportunity, and a biggeropportunity than most realize. Emissionsand water discharge regulations affectmany industries and governmental entitiesacross the US and around the world. Anyholder of an emission permit — or anyonewho requires one — is a potential marketparticipant. So too are manufacturers ofair and water discharge control devices.CantorCO2e connects the dots to enableyou to generate value from yourCompany's hidden assets, or defray costsyou may not yet be ready to face.

“Cantor Fitzgerald delivers on their promises. In a difficult market.

Cantor exceeded our expectations by structuring an innovative

deal that generated more than $4.6 million for KCS. We will

be back.”

–Bill Hahne

PresidentKCS Energy

Emissions trading is the most commonform of environmental credit trading.These market-based programs aredesigned to achieve establishedenvironmental goals by giving companiesthe flexibility to choose their own cost-effective solutions.

First, overall emissions totals are set ona regional basis, then, for each facilityregulated within regional boundaries. Ifyour firm operates below its allocationor reduces emissions you can free up“emission allowances” or generate“emission credits” (collectively “aircredits”). These air credits can be soldto businesses that for economic ortechnical reasons are unable to stayunder their assigned levels.

The incentives are clear. Whether you’rea compliance or financial manager, orentrepreneur developing a cost-effectiveemission reduction strategy makes soundeconomic sense.

The generation and sale of air creditscan translate into ready cash. Alternativelyyou can use these assets to implementa long-term emissions strategy — onethat allows you to invest yourenvironmental control dollars where theymake the most difference.

As your business adapts to the worldwidetrend toward lower discharge levels,CantorCO2e can help you acquire, create,quantify and bank environmental assets.We can also help you develop a nationalor global environmental assetmanagement strategy.

What we can do for you.

“The services provided by Cantor Fitzgerald

have been excellent. The representatives

assigned to our account have been very

responsive to our needs, and each transaction

has been handled in a very expeditious

manner. I would not hesitate to recommend

Cantor Fitzgerald for brokerage services related

to NOx transactions.”

–Linda R. Thomson

PresidentJohnstown Area Regional Industries

“After years of dealing with other firms, I

brought Cantor Fitzgerald on board. Within

a few weeks, we more than doubled our

money through the Clean Air Auction by

selling RTCs that we previously purchased.”

–David Embree

Granite Construction Company

We always go the extra mile, assistingyou and your attorneys in the preparationof binding contracts for the purchase orsale of environmental credits and transferpaperwork for delivery to the relevantenvironmental agency. And, if you andyour counterparty desire, we will eliminatethe risk of default by collecting thepurchase monies and air credits inadvance of the closing of the trade.

At the end, we’ll ensure that transfers offunds and credits are completed in atimely fashion.

Assets are only as valuable as you makethem. At CantorCO2e, we’ll help youmaximize your opportunities every stepof the way.

After introducing you to the fundamentalsof the environmental credit markets, weidentify trading possibilities and providepertinent market insight to steer yourtrading decisions.

Easy access to our markets and tradingplatforms designed to provide anonymityand achieve the best price for you isanother key offering. With our “many-to-many” system you see all offers and bidsat any given time, and your access is notlimited to just a single trader.

Simply put: our experience, marketcoverage, first-to-market, andexpertise equals results for you.

We’ve been active since 1992 — longerthan any other emissions brokerage firm.Our staff has a combined total of over60 years of environmental brokeringexperience. We’ve brokered trades witha market value exceeding $3.5 billion.We participate in over 100 air credit andwaste water markets in more than 21geographic areas – more than any otheremissions broker.

We also have an impressive list of “firsts”in the emissions trading industry. Forexample, our staff brokered the first third-party RECLAIM trade, the first interstateERC trade, and the first Ozone TransportCommission NOx Allowance trade. Our

parent company, Cantor Fitzgerald, L.P.,pioneered the first electronic tradingplatforms for financial markets in the1970s. Today, the eSpeed system andthe Cantor Exchange® continue torevolutionize trading. So, it’s notsurprising the first Internet-basedContinuous Clean Air Auction was ourstoo.

In addition to all of these firsts, we’veproven that we get results. In an EPAannual SO2 auction, CantorCO2e’sclients won 85% of the total allowancesauctioned. We brokered one of the largestgreenhouse gas trade – an internationaltransaction involving nine million tons ofGHG reductions.

Our senior staff has spearheaded effortsto write, evaluate and revise emissions

trading programs. The White HouseClimate Task Force, the United StatesCongress, state and local governments,industrial coalitions, as well asinternational governments developingtheir emissions trading schemes have allinvited us as advisors. So it’s no wonderwe possess an intimate knowledge of alltypes of programs.

But we don’t expect you to work with ussimply because of our pastaccomplishments. It’s what we canachieve for you in the future that counts.

When you add our combined experienceand accurate analysis of ongoingchanges, you have everything necessaryto fine-tune your emissions tradingposition.

Why ?

“Cantor Fitzgerald Environmental Brokerage has

enabled us to effciently and inexpensively satisfy

our emission credit trading needs.”

–Scott Van Vuren

Los Angeles Department of Water and Power

Renewable Energy, Biodiversity, and Greenhouse Gas: One-stop shopping.

CantorCO2e also brokers renewableenergy credits, or RECs, and biodiversitycredits.

RECs represent the green aspect of theelectric power generated through theuse of renewable fuels, such as wind,hydro, solar and biomass. Like air credits,RECs can be bought and sold. RECbuyers include power generators andusers that require, or elect, to provide oruse a certain percentage of green Power.REC sellers are power generators andtraders that have more RECs than theyrequire.

Biodiversity credits represent a landparcel’s genetic, species, ecosystem,and ecological services diversity. Creditsare created when a land owner elects topreserve, create and enhance a parcel’sbiodiversity. In many cases these assetscan be separated from the land andturned into credits. These credits forexample, can be used by land developers

to mitigate the negative ecologicalconsequences of development activity.

In addition, CantorCO2e is the leader inthe carbon market, offering a one stopshop for brokering and consulting ingreenhouse gas (GHG) credit as well astraditional environmental credit markets.Greenhouse gases include carbondioxide and methane. GHG reductionsare required domestically to meetcorporate, state and local mandatetargets. Internationally, reduction targetscome from foreign governmentspursuant to national agendas and,indirectly, the Kyoto protocol. GHGsuppliers are companies that havefigured out a way to produce theirproduct in a manner that produces lessGHG.

Our regional offices in the US offer clientsaccess to greenhouse gas verifiedemission reductions (VERs), RECs,biodiversity credits as well as NOx, SO2,

PM10, VOC and CO allowance andcredits. Our international offices inLondon, Canada, Mexico, Chile, Brazil,India and Japan provide access tointernational greenhouse gas CertifiedEmission Reductions (CERs), EmissionReduction Allowances (ERAs) EuropeanUtility Allowances (EUAs), and VERs.Whatever your needs, the solution justgot simpler.

Markets Acid Rain SO2 Emissions Allowance

NOx Ozone Transport Commission

NOx Ozone Transport Assessment Group

Regional Clean Air Incentives Market NOx and SO2

New Source Review (NOx, SO2, VOC, PM10, CO)

Discrete Emission Reductions

Houston-Galveston Area MECTP NOx Allowances

Illinois VOM Allotment Trading Units

Greenhouse Gas Credits (CERs, VERs, ERAs, EUAs)

Wastewater Credits

Renewable Energy Certificates and Green Tags

Sun up to sun down, we’re with you the entire way.

“Cantor Fitzgerald’s knowledge of rules and

the various programs make them a valuable

resource when we are planning our compliance

strategies; something we do not usually have

available to us from other emissions brokers.

Their efforts to promote market neutrality

and promote confidential, objective trades

are unmatched.”

–Craig S. Campbell

VP EnvironmentLafarge North America, Inc.

“The Cantor Fitzgerald Clean Air Auction is

easy to use, requires minimal effort on my

part, and produces results. All of the associates

are well versed in their knowledge and

expertise, and extermely helpful. We will be

back.”

–Ron Kawezynski

Shell Oil Products Company

If you are new to emissions trading,CantorCO2e is your wake up call. We’ll partnerwith you and introduce you to the right market.Our team of expert consultants will provideyou with a wide range of opportunities andadvice. When you’re ready to trade, our brokerswill efficiently execute your order and clear thetrade – leaving you free to pay attention toyour day-to-day responsibilities.

If you are a veteran emissions trader, take alook at our transparent markets. Consider thecreative structured deals we offer. Benefit fromthe liquidity provided by our many participants.

Enjoy the efficient manner in which your tradesget done. And profit from the ability to meetyour environmental and financial objectives.

With experience in markets across the UnitedStates, Eastern and Western Europe, Asia,South America, and Australia, we can put yourdeal to bed whatever time zone you’re in.

Contact

For further information or to get started visit us on the webat www.cantorco2e.com, www.emissiontrading.comor contact our regional offices at 800.228.2955

LondonOne Churchill PlaceCanary WharfLondon, EnglandE14N 5RDTel: 44.20.7894.8333Fax: 44.20.7894.8334london@cantorco2e.com

New York110 East 59th Street,New York, NY 10022Tel: 1.212.829.5460Fax: 1.203.702.5070newyork@cantorco2e.com

Head Offices

United States - Los Angeles & HoustonCanada - TorontoMexico - Mexico CityChile - SantiagoBrazil - Sao PauloIndia - Mumbai, Delhi & HyderabadJapan - Tokyo

Offices by Region

San Francisco345 California Street,Suite #1260,San Francisco, CA 94104Tel: 1.415.296.9573Fax: 1.415.296.9582sanfrancisco@cantorco2e.com