NYMEX To Get Involved In Emissions Trading
A senior NYMEX official told reporters Wednesday that the exchange was considering getting into the business of carbon emissions trading. Given the actual, but especially the potential, size of this market, it makes sense that established bourses would take a good hard look at it. This will probably not be seen as very good news by the folks at Climate Exchange plc . Of course, until NYMEX actually unveils anything substantial, this will remain nothing but chatter.
Wall Street And Climate Change Get Cosier And Cosier…
A couple of interesting news from Wall Street this week in the realm of carbon finance. Firstly, on Tuesday, JP Morgan announced the launch of what is, as far as I can tell, the first ever bond index with a special climate change risk overlay. In the interest of disclosure, I was tangentially involved with this project. While this overlay probably won't have much of an impact in the very near term, it will be interesting to see what happens once constituent firms are all subjected to some form of greenhouse gas regulation. Second, on Thursday, Lehman...
Trading Places: Will America’s Carbon Market Outsize Europe’s?
Charles MorandIn early January, I said the following on the likelihood that the Obama Administration would move on carbon regulations in the near-term: "The next 12 to 18 months are unlikely to produce much in the way of vigorous environmental action on the part of government (barring subsidies for alternative energy related to the stimulus package), especially if it means additional costs on industry." Clearly, I had underestimated the power of another fundamental rule of politics - besides "don't anger the rust belt states that gave you your presidency by burdening their industries with avoidable costs in the midst...
Carbon Finance…The Next Bonanza
Few investors outside of Europe have ever heard of the term carbon finance. What some investors might have heard, however, is that Goldman Sachs took, on September 20, 2006, a 10.1% stake in a little outfit known as Climate Exchange plc (LSE:CLE) for approximately $23 million. Admittedly, by Goldman Sachs standards, that’s peanuts. Not to be outdone, Morgan Stanley unveiled a plan on Thursday October 26 to invest a whopping $3 billion in global carbon markets over the next few years…now that’s the kind of money that gets folks talking at the water cooler, especially when it’s in something...
Dead Wrong On Climate Exchange
In a May 8 post I opined that, although I believed that recent developments on the climate change file in the US would bode well for Climate Exchange plc (CXCHF.PK), I thought that the stock was overpriced and had had too great a run for its own good over the past 3 months. I therefore predicted that the next move the stock would make would be to the downside. Climate Exchange was trading at around $28 then, and today it is trading in the neighborhood of $36. I continue to believe that this stock is going way too...
Investing in Climate Change
This post was supposed to be about coal-to-liquids (CTL), but I came across interesting info yesterday after opening a former colleague’s mail that I thought would make for a more interesting post. The CTL piece will thus have to wait a bit. What was in the package was a hard copy of the January/February 2007 edition of CNBC European Business. This edition is dedicated to climate change, but, more importantly, to how some firms are positioning themselves to benefit from the markets that will be created as a result of regulatory and other actions to tackle greenhouse gas...
Carbon Emissions ETF
Today, while reading an article on cleantech ETFs by The Motley Fool, I found out that XShares Advisors LLC and the Chicago Climate Exchange were working on a carbon emissions-based ETF (PDF document). There is not a lot of info available on what exactly this ETF will track. We reported back in November that UBS had launched an index based on European carbon prices. As noted by Richard Kang at around the same time, this index is well-suited for something like an ETF. If any of our readers have any further insight on this, don't hesitate...
A New Player In The North American Emissions Trading Sector
Over the past two weeks, a couple of announcements were made that went mostly unnoticed despite their importance to the North American carbon marketplace. Firstly, on May 30, the Montreal Exchange, a derivatives exchange, announced that it was launching an emissions trading market for CO2. The Montreal Exchange is now a unit of the TSX Group (TSXPF.PK or X.TO), the firm that runs all of Canada's exchanges. The second announcement came last week, when the premiers of Quebec and Ontario, Canada's two largest provinces and the heart of its industrial base, announced that they were moving ahead...
Fossil Fuel Industry: Killing the Customer
by Debra Fiakas, CFA
Published by the Climate Accountability Institute, the Carbon Majors Reportlays bare the truth about which companies are responsible for industrial greenhouse gas emissions. One hundred fossil fuel producers are linked to 71% of global industrial greenhouse gases emitted since 1988. Something like a line in the sand for climate scientists, 1988 is the year human-induced climate change was official recognized by the Intergovernmental Panel on Climate Change.
Fossil fuels in the form of coal, crude oil and gas are by far and large the culprits. Rolling forward three decades later, we can observe in the charts below that fossil fuel production...
Climate Change Will Hurt The Poor Most But the Solutions Don’t Have To
The International Center for Appropriate and Sustainable Technology (iCAST) helps communities use local resources to solve their own problems. I've been a fan of iCAST's approach of teaching people how to fish (or, in this case, how to apply sustainable technologies) rather than giving away fish since I first encountered them at a conference in 2006. Last week, they took advantage of some of their own local resources (namely the fact that the DNC was in Denver) to organize a luncheon with a panel of nationally recognized speakers, any one of whom would have been enough to draw a...
Carbon Offsets Work – Will the Mainstream Media Ever Get It?
The carbon markets are an area of keen interest for me personally and professionally, so it is always frustrating that the mainstream media largely refuses to learn the details. In general, layman and media who don’t understand the details of the carbon markets attack carbon offsets in two areas, first, questioning whether the credits are for a project that would have occurred anyway (a concept known in carbon as “additionality”), and second questioning whether there are checks and balances to ensure the environmental standards are adhered to and the abatement actually happens (in carbon known as the validation...
Is Energy Sourcing the Gateway Drug to Energy Efficiency?
Tom Konrad CFA I recently interviewed Richard Domaleski, CEO of World Energy Solutions (NASD:XWES). World Energy is a comprehensive energy management services firm whose core offering is extremely price competitive energy sourcing (that is, finding an energy provider to supply all of a client's energy needs at the lowest possible cost.) They achieve competitive sourcing using an electronic energy exchange designed to achieve much better price discovery in what is traditionally a very opaque market. According to Domaleski, a recent KEMA study showed that only 7% of large commercial, industrial, and government customers are sourcing their...
Update on the Global Carbon Market
The World Bank Carbon Finance Unit recently released its Q3 2006 update for the global market for CO2 emissions (the carbon market). The document, entitled “State and Trends of the Carbon Market 2006��? (PDF file), contains some pretty interesting information that makes it difficult not to be bullish on the future of emissions trading. Here are some numbers. At the end of Q3 2006, the total value of the market stood at $21.5 billion, up 94% on the whole of 2005 ($11.1 billion). Unsurprisingly, Europe, with its Emissions Trading Scheme, continues to account for the bulk (~99%) of...
ADR For Climate Exchange plc
One of our readers made a useful comment on our last post about Goldman Sachs and Climate Exchange plc. I thought some of you who are unlikely to go back to that post might be interested: "Hey this article on the Climate Exchange was great information. But you should tell your readers that there is an ADR trading OTC here in the states - CXCHF. Get it while the gettin is good. How long 'til GS takes this to the big board?" Thanks for this heads up, cascadehigh. UPDATE: Following this post, I got the...
List of Environmental Markets Stocks
This post was last updated on 4/27/2022.
Environmental market stocks are publicly traded companies whose business involves the trading of commodities designed to represent an environmental attribute, such as renewable electricity, the environmental benefits of renewable energy (Renewable Energy Credits ), Carbon Offsets and other types of environmental offsets.
Carbon emission trading implemented
Carbon emission trading scheduled
Carbon tax implemented
Carbon tax scheduled
Carbon emission trading or carbon tax under consideration
By Tbap , via Wikimedia Commons
Crius Energy Trust (KWH-UN.TO, CRIUF)
GlyEco, Inc. (GLYE)
Hannon Armstrong Sustainable Infrastructure (HASI)
Just Energy Group Inc. (JE)
KraneShares Global Carbon ETF (KRBN)
Trading Emissions PLC (TRE.L)
If you know of...
UBS Launches CO2 Emissions Index
UBS (NYSE:UBS) announced on Friday the launch of the UBS World Emissions Index (UBS-WEMI) – the world’s first index based on global carbon markets. At the moment, only the two exchanges linked to the EU Emissions Trading Scheme (ETS) , the Nordic Power Exchange (Nordpool) and the European Climate Exchange (ECX), qualify for WEMI. The index is composed of future contracts on CO2 weighted between the two trading platforms as follows: ECX, 72.11% and Nordpool, 27.89%. The weights are allocated based upon the liquidity of the underlying exchanges as well as their respective share in the European carbon market....
