Climate change and what it means for investors


There seems to be an article every day now on the effects of climate change and why businesses and governments need to become more environmentally responsible but what does that mean for investors?

The graph shows the increase in Carbon Dioxide from 1960 – 2010 and it continues to
increase on an annual basis with measurements over 400 ppmv in the last month.

In an attempt to control and reduce the carbon emissions and greenhouse gases the
Kyoto Protocol was created as a way of monetising carbon output emissions. By making emissions reductions that have been verified a commodity that can be bought and sold by organisations a new asset class has been created, one that now offers a
fantastic investment opportunity for the forward thinking investor.

VER’s (Verified Emission Reductions) are credits derived from a wide-range of project
types, from small scale community driven projects, to large renewable energy
projects. Each VER represents a verified emission reduction of one tonne of CO2 or
equivalent gas, this means each credit is the result of a positive contribution
to the global effort to control climate change.

The VER market is growing rapidly. In 2008, 123.4 million metric tonnes of CO2 were transacted a near doubling of the 2007 volume.  VER prices then increased by 20% in 2009 when the market was valued at US$705 million and with a projected annual growth of 25% it offers a great investment option.

For more information on the trading of carbon credits or reducing your carbon footprint
please see our website or contact Moya McKeown at carbon-expert on 020 3137 5480