Best of the Week
Most Popular
1. Ray Dalio: This Debt Cycle Will End Soon - John_Mauldin
2.Stock Market Dow Plunge Following Fake US - China Trade War Truce - Nadeem_Walayat
3.UK House Prices 2019 No Deal BrExit 30% Crash Warning! - Nadeem_Walayat
4.What the Oil Short-sellers and OPEC Don’t Know about Peak Shale - Andrew_Butter
5.Stock Market Crashed While the Yield Curve Inverted - Troy_Bombardia
6.More Late-cycle Signs for the Stock Market and What’s Next - Troy_Bombardia
7.US Economy Will Deteriorate Over Next Half Year. What this Means for Stocks - Troy_Bombardia
8.TICK TOCK, Counting Down to the Next Recession - James_Quinn
9.How Theresa May Put Britain on the Path Towards BrExit Civil War - Nadeem_Walayat
10.This Is the End of Trump’s Economic Sugar High - Patrick_Watson
Last 7 days
UK House Prices Momentum Forecast 2019 - 18th Dec 18
Will US Government Shutdown Cause The Stock Market To Crash? - 18th Dec 18
The Coming Financial Storm - 18th Dec 18
Jeff Gundlach thinks that a Stocks Bear Market has started. Is he Right? - 18th Dec 18
Gold’s Not An Investment – You Won’t Get Rich - 17th Dec 18
Stock Market At Medium-Term Lows, Which Direction is Next? - 17th Dec 18
This Stock Will Drive America’s 5G Buildout - 17th Dec 18
Stock Market Turn In The Tide - Have a Happy Bear Market! - 17th Dec 18
How A NASA Scientist Could Trigger The Next Cannabis Boom - 17th Dec 18
iShares Russell 2000 IWM Leading Stock Market Decline - 17th Dec 18
Where is the Dow Stock Market Santa Rally? - 17th Dec 18
With Weaker Climate Consensus, Expect Elevated Climate Change - 16th Dec 18
SMIGGLE Advent Calendar 2018 UK Contents - What You Get Look Inside Review - 16th Dec 18
Is there a Lump of Coal in Santa's Stock Market Bag? - 16th Dec 18
This Market Will Drive Gold in 2019… - 16th Dec 18
Gerald Celente:Central Banks Can’t Stop a 2019 Debt Disaster - 16th Dec 18
Gold Stocks Triple Breakout - 15th Dec 18
The stock market fails to rally each day. What’s next for stocks - 14th Dec 18
How Low Could the S&P 500 Go? - 14th Dec 18
An Industrial to Stock Trade: Is Boeing a BUY Here? - 14th Dec 18
Will the Arrest of Huawei Executive Derail Trade War Truce? - 14th Dec 18
Trump vs the Fed: Who Wins? - 13th Dec 18
Expect Gold & Silver to Pullback Before the Next Move Higher - 13th Dec 18
Dollar Index Trends, USDJPY Setting Up - 13th Dec 18
While The Stocks Bulls Fiddle With The 'Fundamentals,' Rome Burns - 13th Dec 18
The Historic Role of Silver - 13th Dec 18
Natural Gas Price Setup for a Big Move Lower - 13th Dec 18
How to Get 20% Off Morrisons Weekly Supermarket Shopping - 13th Dec 18
Gold Price Analysis: Closer To A Significant Monetary Event - 13th Dec 18
Where is the Stock Market Santa Claus Rally? - 12th Dec 18
Politics and Economics in Times of Crisis - 12th Dec 18
Owning Precious Metals in an IRA - 12th Dec 18
Ways to Improve the Value of Your Home - 12th Dec 18
Theresa May No Confidence Vote, Next Tory Leader Betting Market Analysis and Forecasts - 12th Dec 18
Gold & Global Financial Crisis Redux - 12th Dec 18
Wow Your Neighbours With the Best Christmas Projector Lights for Holidays 2018! - 12th Dec 18
Stock Market Topping Formation as Risks Rise Around the World - 11th Dec 18
The Amazing Story of Gold to Gold Stocks Ratios - 11th Dec 18
Stock Market Medium term Bullish, But Long Term Risk:Reward is Bearish - 11th Dec 18
Is a Deleveraging Event about to Unfold in the Stock Market? - 11th Dec 18
Making Money through Property Investment - 11th Dec 18
Brexit: What Will it Mean for Exchange Rates? - 11th Dec 18
United States Facing Climate Change Severe Water Stress - 10th Dec 18
Waiting for Gold Price to Erupt - 10th Dec 18
Stock Market Key Support Being Re-Tested - 10th Dec 18
May BrExit Deal Tory MP Votes Forecast, Betting Market Analysis - 10th Dec 18
Listen to What Gold is Telling You - 10th Dec 18
The Stock Market’s Long Term Outlook is Changing - 10th Dec 18
Palladium Shortages Expose Broken Futures Markets for Precious Metals - 9th Dec 18
Is an Inverted Yield Curve Bullish for Gold? - 9th Dec 18

Market Oracle FREE Newsletter

How You Could Make £2,850 Per Month

Global Warming and Profiting from Investing in Carbon Trading

Companies / Analysis & Strategy Oct 30, 2006 - 02:49 AM GMT

By: Sarah_Jones

Companies The Kyoto pact has spurred billions of euros in greenhouse trade between companies in Europe and through a program that allows rich countries to pick up credits for investing in clean projects in developing countries.

The first phase of the pact requires about 35 developed countries to cut emissions of 5% from 1990 levels by 2008 to 2012.
But carbon dioxide-belching oil refineries and power plants, beyond some in Europe, mostly have yet to join in. That's mainly because President George W Bush withdrew US – the top polluter – from the international agreement, and as rapidly developing countries like China, India and Brazil oppose emissions limits because they have only recently industrialised.

But this is likely to change as the economic impact of global warming starts hitting and the carbon trading market could be transformed from a $10 billion a year market to a $1 trillion market.


Recently Morgan Stanley, the investment bank, announced a $3bn plan to invest in the carbon trading market amid mounting evidence that some US states are growing more sympathetic to international action. The moves come just days before a UK government report is expected to propose a huge expansion of the global market in trading permits for carbon dioxide emissions. It will also propose extending existing mechanisms for western companies to benefit from promoting cleaner energy in poor countries.

How to invest in Carbon Trading ? : There are two ways to invest, first is directly into the firms that trade in carbon emission contracts and the second is in carbon credit producing energy projects to reduce greenhouse gas emissions which can be traded against carbon production.

Investment Trusts : The safest way into the sector is probably is via a fund or investment trust, which spread the risk amongst an basket of companies, these investments are managed by the fund manager and hence should represent much less risk than an individual stock investment.

Ironically the oil companies may also be a good carbon play, due to most majors such as BP and Shell investigating alternative, cleaner energies as well as carbon offset technologies many of which are being implemented.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments


30 Oct 06, 05:03
Re: Global Warming and Profiting from Investing in Carbon Trading
you may be interested in this about the financial costs of global warming -

Global warming will cost the world up to seven trillion dollars in the next decade unless governments take drastic action soon, according to a major British report.

Former World Bank chief economist Sir Nicholas Stern was commissioned last year by finance minister Gordon Brown to lead a review into the economics of climate change.

The Observer newspaper on Sunday published excerpts from the 700-page report, which adds that unchecked global warming could make 200 million people refugees from drought or flood.

Publication of the report is likely to fuel debate in Britain over whether the government should introduce a tougher regime of "green taxes" to cut carbon emissions.

According to the Observer, the Stern report says unchecked climate change would cost up to 3.68 trillion pounds (6.98 trillion dollars) - more than World Wars I and II and the Great Depression of the 1930s.

It also warns that the world needs to spend about one percent of global gross domestic product - equivalent to about 184 billion pounds - on the issue now or face a bill up to 20 times higher than that in future, the paper says.

Kyoto successor needed now

Stern also calls for a successor to the Kyoto agreement on greenhouse gases to be signed next year, not in 2010 or 2011 as planned, because the problem is so urgent, it adds.

Failure to act quickly would trigger a global recession, he reportedly adds, and calls for an international framework to tackle the issue.

The Observer says his report is the first heavyweight contribution to the debate on climate change by an economist rather than a scientist.

Environmental activist group Greenpeace said it removed any doubt about the need to tackle climate change.

"If we are to avert catastrophe then there has to be a real cost to emitting carbon and that means higher taxes on flying and gas-guzzlers. We owe it to future generations," a spokesperson said.

31 Oct 06, 13:33
Re: Global Warming and Profiting from Investing in Carbon Trading
In the hefty report, Stern pointed out that there was a great risk of grave economic stagnation and estimated that it would cost about 5.5 trillion euros.


According to the report, if countries do not reserve one percent of their gross national product for the struggle against global warming today, they will have to pay five to 20 percent of their economies in the future.


Stern urged governments to act immediately and also warned that even a 10-15 year delay would drag the world to the brink of a catastrophe.

However, he also added that because the world has both the financial resources and time to prevent a possible crisis, there is good reason to be optimistic.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules