The 21st century has seen an abundant growth of investments in green and environmentally friendly technologies. Investments in the carbon market can be made for a variety of reasons. The most obvious candidates for investment in the carbon market are companies who exceed the permitted cap for greenhouse gas emissions.
This form of carbon footprint offsetting is what is fueling carbon investments. With other countries showing interest in joining the scheme next year, the trend for carbon investments looks set to continue into the future. This is the trend which is attracting global investments.
At the recent G8 summit, world leaders agreed that the world must collectively succeed in lowering greenhouse gas emissions by 50% by the year 2050. The aim is to limit the total global warming temperature to an increase of 2 degrees higher than the levels in 1900. At the moment, only 37 countries have signed the 1997 Koyoto agreement to keep greenhouse gas emissions to a safe level for the environment. The rest of the world has yet to sign up.
Some investors are from countries which do not participate in the scheme. These investors do so with the view to gaining a financial advantage in the future. Investments in this market have been extremely popular with international banks in the past.
Carbon investments can be made through a broker. First, an account must be registered. The account must then be funded by a minimum cash deposit, specified by the broker. Then, trading on the carbon market can begin. This has become a popular method for investing, as no expert knowledge is required and it is relatively easy to set up.
Recent figures show that investments in the international carbon market have grown by 5% over the last 2 years. The price of carbon credits has increased, by 17% last year. Carbon investments have shown growth in a time of recession. According to a popular finance company, the global carbon market could be worth as much as $2.4 trillion by 2020 if it continues to grow at this rate.
Investments in the international carbon market are expected to show further escalation this year. The forecast is for the market to grow by at least a further 15%. Economists have stated that the global carbon market could be worth as much as $100 billion by the end of the year.
The USA has expressed an interest in joining the scheme along with China, India and Japan. This would mean further expansion and more investments. The EU has proposed to lower greenhouse emissions further, by targeting the emissions caused by airlines leaving and returning to the EU.
Countries as well as companies with a large carbon footprint will have to spend more in the future if they are to continue with a carbon intensive way of living. A country with a lower carbon footprint and green energy sources will have carbon credits available to trade; the value of these in the future is not known.
At Carbon Expert, we have a commitment to the alternative green market sector, and are a leading international broker of carbon credits. In a market now worth approximately US$144 billion, the carbon market is set to eclipse all preceding markets. Carbon is having a major impact on energy markets and prices. Its effects are impacting upon energy producers, utilities and increasing numbers of manufacturers.
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