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Green Automotive Enters into Agreement to Monetize Future Carbon Credits

^{Published on 2011-05-23 05:55:43 - Market Wire}
 

DALLAS--([ BUSINESS WIRE ])--Green Automotive Company Corporation (OTC:GACR) announced today the engagement of Green Giant Venture Fund as part of the Companya™s plans to sell forward ita™s expected allocation of carbon credits generated by future sales of ita™s zero emission, All-Electric vehicles through the developing aCap and Tradea commodity market.

"When a product is recognized and approved as meeting UNFCCC standards"

aCarbon Credits, also known as Certified Emission Reductions,a said Fred Luke, President of Green Automotive, aare the evolution of the Clean Air Act of 1990, which set out to reduce sulfur emissions that cause acid rain, but in this case the goal is to reduce the amount of carbon dioxide emitted into the environment by companies whose products emit CO₂ in excess of the applicable regulatory standards."

Under newly enacted CO₂ emissions regulations, companies whose products emit CO₂ will have a limit on the amount of greenhouse gas that their products can emit. The company, or aemittera, must have an aemissions permita for a certain amount of CO₂ it releases into the atmosphere. These permits set an enforceable limit, or acapa, on the amount of greenhouse gas pollution that the emitter is allowed to emit. Over time, the limits become stricter, allowing less and less pollution, until the ultimate reduction goal is met.

aThe newly developed Carbon Credits,a said Mr. Luke, aare essentially ascripta™ issued as a reward to those companies who reduce the amount of CO₂ emitted into the environment by their products. These credits, known as Carbon Credits, are becoming a commodity in which a world-wide market seems to be developing, and those large-scale emitters of CO₂,who are unable to meet the regional maximum emission standards in the time allotted, see purchasing as cost-effective alternative to the penalties and fines potentially imposed for not being in CO₂ emission compliance within the prescribed timeframe.a

aBased upon the information provided by Green Giant Venture Fund,a said Mr. Luke, aI believe Green Automotive's All-Electric, emission-free vehicles, beginning with the All-Electric Sport Utility Vehicle which showcased recently at the OC Technology Influencer and Summit 2011 in Newport Beach California, will qualify as a Clean Development Mechanism (CDM) as set out in the United Nations Framework Convention on Climate Change, and generate Carbon Credits.a

aWhen a product is recognized and approved as meeting UNFCCC standards,a said Grant Galloway, Director of the Green Giant Venture Fund, athe amount of avoided CO₂ emissions are calculated and Carbon Credits are generated, and once generated they can be sold or possibly used as collateral for working capital loans. The practice of making forward sales of these credits, usually at a discount to current prices, is evolving into a method to monetize onea™s efforts to bring clean energy products to market and access capital during a companya™s development stage.a

"The European Climate Exchange, or ECX,a said Mr. Galloway, aprovides the platform to support the trading of Carbon Credits and encourage responsible energy development on the supply side, and practical economic decisions on the consumption side. We see tremendous market and value propositions for companies like Green Automotive which are at the forefront of bringing clean energy products to market. Even though the discussions for the United Nations Framework and other CO₂ reduction resolutions have been ongoing for some time, I would still classify Green Automotive and Green Giant Venture Fund as early adopters in a market that already is at a'68 Billion, and is growing at a high double-digit rate.a

About Green Automotive Company: Green Automotive Company Corporation is U.S. public company involved in the import and distribution of Eco-friendly vehicles in the U.S. The Company has an exclusive importer/distributor agreement to market the All-Electric SUV and MPV All-Electric vehicles throughout the United States. The Company's shares are on the OTC Market Tier--OTC Pink Current under the symbol "GACR". Visit [ www.usaelectricauto.com ] or write to [ info@usaelectricauto.com ].

About Green Giant Venture Fund: As a private equity fund, Green Giant Venture Fund invests in Carbon Credit eligible public companies throughout the world, and is a registered service provider for both World Bank - Carbon Finance and UNFCCC-CDM Bazaar. The Company develops Project Idea Notes (PIN) and Project Design Documents (PDD), both prerequisites to entering the European Carbon Market. The Company's consultancy services include analyzing, advising, and negotiating financial and ownership structures for potential partnerships or private placements related to the Project, and assists in development and refinement of written materials, presentations, financial models and analyses for use with potential investors and lenders. The Company has reported successful financing and framing of strategic partnerships with major participants in the acarbon financiala sector as a result of its network of its global contacts of acarbona commodity and equity market participants. For more information, visit [ www.greengiantventurefund.com ].

Safe Harbor Statement - This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual or future results may differ materially from those anticipated depending on a variety of factors, including continued maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products, continued product innovation, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Green Automotive Company Corporation incorporates by reference its disclosure and financial statements posted on [ www.otcmarkets.com ], and does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.