The Wall Street Journal reported last week on a new effort from the New York Mercantile Exchange, Morgan Stanley, J.P. Morgan Chase, and Credit Suisse to create an exchange for trading carbon emissions. They’re calling it “The Green Exchange,” and it is set to start up at the beginning of 2009.
According the article, “The new exchange will provide tools for traders and companies to bet on the cost of carbon emissions, while letting emitters store carbon credits.” And according to Clean Air-Cool Planet’s Bill Burtis, “Theoretically, putting up a price on carbon is an incentive to reduce carbon emissions.”
If this sounds familiar, it’s because it’s the sort of idea we’ve been promoting here at Terra Rossa for some time. It remains to be seen whether or not The Green Exchange can make any headway in absence of a national carbon limit, but with Lieberman-Warner continuing to move through the Senate, a U.S. cap-and-trade program remains a very real possibility. Even in the absence of a set limit, though, it’s good to see the free-market taking the lead on this issue.
This entry was posted on Thursday, December 27th, 2007 at 4:21 pm and is filed under Cap and Trade, Eco-Business Strategies . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
