There is a lot of buzz about this new area of commerce–Carbon Credits, but what does it really mean for investors and green companies?  Is it majic dust with no real value other than the made up value of some market exchange?  Can Carbon Credits really be something tangible to be bought and sold?  Will the ability to buy a carbon credit to offset bad environmental impact of a company really help the environment at a micro level?

During the radio show held on Feb 27th on Blog Talk Radio Karen Rands, host of SPEC Talk Radio, had a lively interview with Ian Adlington of Newport Capital, Investor, Entrepreneur, Market Maker for Carbon  Credits as a capital platform; and green entrepreneur, Chris Pollatos, founder of Verdant Energy Solutions, LLC manufacturer of Bio-coal and analyst of the carbon credit trends. The heart of the conversation was  the nature of a carbon credit, who buys, who sells, and the impact it has, not only on the environment at a micro and macro level, but how investors and financial markets are responding.   Will Carbon Credits become the next boon for the financial markets and drive our next investment bubble?   Do Carbon Tax Credits motivate the emissions producers enough to change their behaviour, or is the ability to by carbon credits just a bandaid that doesn’t really fix the problem?

“Investors are increasingly looking for opportunities to obtain exposure to investments that will gain from a shift to a lower-carbon economy.”

-Merrill Lynch, January 2008

As it turns out, Carbon Credits are a tangible product that you can’t touch and feel, but has a real value that appears on balance sheets, can be bought and sold, and can attract investment and financing from investors and lenders for the companies creating the carbon credits.  It is really becoming a new economic platform.   According to Barclay Capital, the global emissions market has grown from nothing, nada, zilch in 2004 to a market with traded volume worth about €25 billion or about $32 B US in 2007 alone and growing.  It is the buzz with innovative companies and new funds being launched.  There are partnerships being formed, acquisitions being made and investments by leading commodities and derivatives exchanges in anticipation of the potential of where this can go as a new commodity.  Many of the exchanges you may have never heard of: European Climate Exchange ( ECX ), ICE, Nymex, European Energy Exchange ( EEX ), Chicago Mercantile Exchange is active and Hong Kong is setting up an exchange.  The complexity on this topic is increasing as more exchanges spring up around the world and even beyond carbon emissions, is the added factor of climate-change derivatives such as disaster and weather risk are linked and traded.   Investors can invest via exchanges or directly through a broker by pooling their funds.   Money seeks a way to grow itself, and every few years we get a new bubble.   These experts believe Carbon Credits could be just that thing…so if you haven’t learned anything from the last decade… bubble, real estate bubble… you want to be at the beginning of the bubble to make the most profit.   But as you will hear in this radio show, there is real potential for this new economic market to be stable and steady in its growth, and not just another bubble

Carbon economy needs freedom to respond to the supply and demand, based on a standardized measured value of carbon credit.   Carbon economy allows Compassionate Capitalists to invest in companies that brings innovation to market that reduce greenhouse emmissions, neutralize carbon footprints, help our planet thrive and make a return on their investment.   Sounds like Utopia!

Listen to the replay of the interview, learn, get involved, and spread the word.

Listen Now!  Carbon Credits – Will a Futures Exchange be the Next Bubble for Investors?

Check out these investment websites: (parent company), (consulting services for entrepreneurs to prepare for and attract capital), (angel investor membership group in Atlanta), (sources for ebooks for entrepreneurs and investors), (entrepreneur blog), and the SE Private Equity & Capital Conference (SPEC)

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