According to a recent New York Times article, the carbon (dioxide) trading market is now worth an estimated $30 Billion and could grow to $1 Trillion within a decade.I knew of the collapse of the Chicago Climate Exchange and of some of the frauds in the European trading system and so I googled "New York Times carbon trading market." So far I can't find the story quoted by Green guide. Why, oh why didn't they give a link to the story?
My search did find the following stories.
NEW YORK -- Have criminals found a lucrative niche in carbon markets?
Previously, many bankers and traders said no, insisting that one-off incidents involving theft or cheating in Europe's Emissions Trading System (ETS) were isolated events attributable mostly to the youth of the market. Advocates of a cap-and-trade approach to tackling climate change said that such growing pains are inevitable, but regulators and legitimate market participants would get better at warding off abuses.
September 1, 2010
SINGAPORE — In July 2007, the Australian Climate Exchange, known as the A.C.X., introduced the first electronic trading system for greenhouse gas emissions in Australia. Voluntary Emission Reductions, or VERs, generated by abatement projects verified by the government-sponsored Australian Greenhouse Office, had been introduced a few months earlier and initial business on the exchange was brisk. It set up a registry for Australian VER certificates and soon was also trading similar instruments from overseas But this January, the A.C.X. discreetly halted business, and what had started like a lion went out like a lamb. “We had to close the business down because we’d run out of funds to continue,” said Tim Hanlin, the former managing director of the exchange. “The government of Kevin Rudd had indicated the focus would move toward a mandatory market and we had made significant investments to get ready for that eventuality. That was our downfall.
Hunter expressed concern that a financial regulatory reform bill rolled out by Sen. Christopher Dodd (D-Conn.) this week could put heavy restraints on trading customized derivative contracts banks and traders say will be the financial lubricants needed for a fully functioning U.S. carbon market.
The Stakes of Carbon Trading Are Losing Their Sizzle March 12, 2010
NEW YORK -- Global carbon dioxide emissions offsetting markets are fast losing their luster in the minds of investors, both in the United States and abroad. As governments around the world delay climate change legislation, offset project developers and traders on Wall Street and beyond say that they are rethinking their earlier enthusiasm for carbon markets.