Carbon Trading

The Australian Climate Exchange came to an abrupt end this past January when the group quietly stopped business due to a lack of funding; this being the latest display of the decline in carbon trading (a system meant to regulate pollutants related to global warming using the “cap and trade” method). The decline in popularity began with the U.N Climate Change Conference of 2009 which failed to supply any new developments in the field. The recent economic downturn and uncertainty surrounding future and present climate laws has also acted as reinforcement to the mindset shown during the 2009 conference. Three years ago, the buzz about carbon trading was at its peak (especially in the Asia Pacific region with high activity in New Zealand and India). However, despite the current market’s status, hope may be present in the newest carbon trading group, Carbon Trade Exchange, C.T.X. Wayne Sharp, C.E.O of C.T.X., feels the problem seen in previous trading companies may be their backgrounds. Sharp clarifies that most people who go into carbon trading know little about carbon, and treat it like commodity. Another problem is it is a very expensive business. Other carbon exchanges are also pushing forward, including Indian Climate Exchange, the Chicago Climate Exchange, etc.

I feel carbon exchange is an interesting, and viable prospect to help prevent climate change. Though it sometimes feels like as much of an economic investment as an environmental one, using money (something people respond to and care about) seems like a plausible and smart way to make people invest in the bettering of their technology, resources, and general operation when they otherwise wouldn’t. While not everyone cares about the environment, everyone cares about their wallets. Carbon exchange would make people care about both.

http://www.nytimes.com/2010/09/02/business/energy-environment/02iht-rentrade.html?pagewanted=2&src=busln