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mcgeedo · 10-23-2008, 11:26 AM

From The Guardian (UK) Oct. 22, 2008:

Fresh from the devastation they have wrought on the global financial system, some of the world's leading investment banks meet in London today to discuss how they can "cash in" on carbon. But at least delegates and speakers at the Cashing in on Carbon conference are open about not trying to reduce emissions or helping the environment. Oh, no. This event is to see how "investment banks can profit today from an increasingly diverse range of carbon-related investment opportunities". Particularly reassuring is the emphasis on "hybrid and complex carbon credit structured products", and how to identify investor demand for them in the US; "derivative/synthetic carbon products"; and "sub-index arbitrage strategies". Also, we can refresh our knowledge of the basic options for "productising carbon" and of "access channels for producers ... speculators, proprietary traders and investors". Good to see that execs from Lord [Nicholas] Stern's company, IDEAcarbon, will be there, too.

The above article is clearly editorial in it's commentary, but it seems that the facts are there: Investors plan to trade in financial products based or derived from carbon offsets/credits and the like.

I suppose that if they are conservative with their risk management, it could be good business, i.e. profitable. On the other hand, it kind of sounds to me like investing on futures like the outcome of political races and sporting events, i.e. gambling.

Does anyone have any opinions as to whether this is good business? I'd prefer that the thread not be a discussion of whether climate change is harmful or man-made. I'd like to limit it to a discussion of whether this is good business or a potential scam, as the author of the original article might think.

10-23-2008, 11:26 AM	#1 (permalink)
mcgeedo Crazy	Banks to trade in carbon From The Guardian (UK) Oct. 22, 2008: Fresh from the devastation they have wrought on the global financial system, some of the world's leading investment banks meet in London today to discuss how they can "cash in" on carbon. But at least delegates and speakers at the Cashing in on Carbon conference are open about not trying to reduce emissions or helping the environment. Oh, no. This event is to see how "investment banks can profit today from an increasingly diverse range of carbon-related investment opportunities". Particularly reassuring is the emphasis on "hybrid and complex carbon credit structured products", and how to identify investor demand for them in the US; "derivative/synthetic carbon products"; and "sub-index arbitrage strategies". Also, we can refresh our knowledge of the basic options for "productising carbon" and of "access channels for producers ... speculators, proprietary traders and investors". Good to see that execs from Lord [Nicholas] Stern's company, IDEAcarbon, will be there, too. The above article is clearly editorial in it's commentary, but it seems that the facts are there: Investors plan to trade in financial products based or derived from carbon offsets/credits and the like. I suppose that if they are conservative with their risk management, it could be good business, i.e. profitable. On the other hand, it kind of sounds to me like investing on futures like the outcome of political races and sporting events, i.e. gambling. Does anyone have any opinions as to whether this is good business? I'd prefer that the thread not be a discussion of whether climate change is harmful or man-made. I'd like to limit it to a discussion of whether this is good business or a potential scam, as the author of the original article might think.