Just so people don’t think that the idea I talked about yesterday of environmental marketing is just wishful thinking, here is a story from today’s Wall Street Journal – “Biggest-Ever Emissions Trades: $1 Billion Deal Benefits Beijing”:
The World Bank and 11 utilities, banks, trading firms and others have put together the largest greenhouse-gas emission trades in history, a $1 billion deal that will help two Chinese chemical companies reduce emissions believed to cause climate change by the equivalent of 19 million tons of carbon dioxide a year.
A billion dollars — that is real money!
But the creation of this market requires government action:
Seventy-five percent of the money is coming from European and Asian corporations, many of which are hurrying to buy emissions credits that can be used to meet the terms of the Kyoto Protocol. The treaty, ratified by 164 countries, requires 35 participating industrial nations to reduce emissions of carbon dioxide and five other so-called greenhouse gases by 5.2% below 1990 levels between 2008 and 2012.
Since the US does not recognize the Kyoto Protocol, this US companies are not interested in this type of international deal through the World Bank’s Carbon Finance Unit. But not to worry, one of the major players in this market is Natsource, a New York based asset management firm. Natsource reports that greenhouse gas market transactions in 2005 were valued at $10.9 billion.
Now that is really real money.