The 15 Trillion Carbon Trading Market

[Adeptus]

I just happened to turn on the TV at the right time tonight and caught the last 60% or so of CBC's (Canadian Broadcasting Corp) latest documentary on "Carbon Hunters". These are people all around the world who try to find new 'carbon credits' to then sell in the futures market.

This documentary explained how world wide government environmental policy based on the ratified Kyoto protocol (across 180+ countries) has created what I would suggest is a sort of new derivative market (started in 2005) that allows for the trading of pollution in the stock markets (what will they think of next!?!?). Rather than write a lengthy explanation of something I barely have grasped, just watch this 3 minute trailer:

CBC's Trailer video (3 mins)
http://www.youtube.com/watch?v=QkmdS8XWq08

Other videos of interest...

THE EMISSION TRADING SYSTEM/SCHEME (10 mins)
http://www.youtube.com/watch?v=y7veR...1&feature=fvwp

Nice summary video

Stanford Experts on Climate Change and Carbon Trading (2006 Academic video: 1.5 hours)
http://www.youtube.com/watch?v=LLmTxewAfds&NR=1

Anyway, as a day-old newbie to this ~4 year old (but still new) concept, what do itulipers think of the current & future concept of Carbon Trading? Are carbon credits (& stocks) cheap right now given the government intent is to reduce total carbon credits issued over time so as to reach pre 1990 Carbon Emissions? (reduction of available carbon credits = lower supply = higher cost).

Thanks in advance,
Adeptus

[idianov]

Re: The 15 Trillion Carbon Trading Market

Adeptus,

Read the Tale of Securitized Cod, Babylonian Finance and Simple Math. It appears that Icelandic Cod and Carbon Market have lots of things in common... ;)

Igor

[thunderdownunder]

Re: The 15 Trillion Carbon Trading Market

Adeptus,

Read the Tale of Securitized Cod, Babylonian Finance and Simple Math. It appears that Icelandic Cod and Carbon Market have lots of things in common... ;)

Igor

http://en.wikipedia.org/wiki/Rule_of_72

Rule 72 - the preeminent "key" rule of life - once this simple rule is embedded by even the dullest mind it opens all doors to all mysteries of the World in which we live. My father taught it by his and him to me and I have taught it to mine.
Martin Armstrong uses it throughout his wave theories.

[Rajiv]

Re: The 15 Trillion Carbon Trading Market

Talking of the rule of 72, you should watch - The Most IMPORTANT Video You'll Ever See

And Prof Al Bartlett's website

Albert A. Bartlett is Professor Emeritus in Nuclear Physics at Colorado University at Boulder. He has been a member of the faculty of the University of Colorado since 1950. He was President of the American Association of Physics Teachers in 1978 and in 1981 he received their Robert A. Millikan Award for his outstanding scholarly contributions to physics education.

Dr. Bartlett has given his celebrated lecture, Arithmetic, Population and Energy over 1,600 times. His collected writings have been published in the book, "The Essential Exponential! For the Future of Our Planet".

[c1ue]

Re: The 15 Trillion Carbon Trading Market

I don't know about these carbon hunters, but other carbon hunters have been busted for fraud:

1) Only a tax fraud on carbon... but still of consequence for an investor

http://www.telegraph.co.uk/finance/m...dit-fraud.html

2) Outfight fake carbon credits

http://www.911oz.com/vbulletin/showthread.php?p=27914

3) Fake carbon brokers

http://www.thejakartapost.com/news/2...says-govt.html

In general, the danger with any completely imaginary product is the impossibility of verification.

How can you tell if the carbon certificate is real? There is no deliverable.

How can you tell what the fair price is? One carbon certificate is not equal to any other.

[thunderdownunder]

Re: The 15 Trillion Carbon Trading Market

Talking of the rule of 72, you should watch - The Most IMPORTANT Video You'll Ever See

And Prof Al Bartlett's website

Yes - sent it to my eldest Lad 5 months ago - now apply that to Principal + interest (P+I) - and you get an exponential curve that must eventually collapse in on itself. Default or debt moratorium is the only possible reset. Same with Carbon Credits