Obama's climate policy and climate investment
President Obama is making moves to stray away from President Bush's climate policy. First, he signed measures to encourage more feul efficient vehicles and vowed to fight with global warming. In consequence, Secretary of State Hillary Clinton sent an envoy, Todd Stern, who has experience in Kyoto Protocol, for climate change.
President Bush refused to sign the Kyoto Protocol, claiming it would slow down the US economy.
One of the climate change issues is the carbon emission. Even lacking support the US government, EU and Asian countries had started a fast growing commodity market centered in London. The commodity is carbon emission. Goldman Sach, Morgan Stanley, and now the defunct Merill all had involved in this investment. They are trading carbon emission quota among countries such as India and China, who can supply carbon credit. Then these investment banks sell the credit to developed countries so that they can emit more. The original goal was to limit carbon emission level. However, from the way how it works, it seems there is no machenism preventing emission level. The Kyoto Protocol is one the trading systems that can commercialize the carbon trade.
With the US government new climate policy in sight, it is reasonable to expect the carbon credit market pie will enlarge. But we should see there are changes on the way to better address the emission problem.
Traders buy and sell carbon and devises investment projects that generate credits for companies who need them. Others try to manage the costs of emissions from coal or natural gas plants now and in the future, when the cost of emitting could rise sharply. It is estimated that every year there are 38 billion metric tons of carbon dioxide is generated.
Carbon credits can be traded in Chicago Climate Exchange. Compared to national tradings, smaller sellers like farmers can also participate. For example, farmers who can store carbon in the soil through a number of conservation production practices can earn additional revenue through carbon trading. There are carbon meetings to determine how much the credit is. Landowners who have idle land can benefit from such model in the future.
President Bush refused to sign the Kyoto Protocol, claiming it would slow down the US economy.
One of the climate change issues is the carbon emission. Even lacking support the US government, EU and Asian countries had started a fast growing commodity market centered in London. The commodity is carbon emission. Goldman Sach, Morgan Stanley, and now the defunct Merill all had involved in this investment. They are trading carbon emission quota among countries such as India and China, who can supply carbon credit. Then these investment banks sell the credit to developed countries so that they can emit more. The original goal was to limit carbon emission level. However, from the way how it works, it seems there is no machenism preventing emission level. The Kyoto Protocol is one the trading systems that can commercialize the carbon trade.
With the US government new climate policy in sight, it is reasonable to expect the carbon credit market pie will enlarge. But we should see there are changes on the way to better address the emission problem.
Traders buy and sell carbon and devises investment projects that generate credits for companies who need them. Others try to manage the costs of emissions from coal or natural gas plants now and in the future, when the cost of emitting could rise sharply. It is estimated that every year there are 38 billion metric tons of carbon dioxide is generated.
Carbon credits can be traded in Chicago Climate Exchange. Compared to national tradings, smaller sellers like farmers can also participate. For example, farmers who can store carbon in the soil through a number of conservation production practices can earn additional revenue through carbon trading. There are carbon meetings to determine how much the credit is. Landowners who have idle land can benefit from such model in the future.
posted by Intl.investment.services at
10:16 PM
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