The Importance of the Carbon Market
The carbon markets can be one of the most important policy tools for cost effectively reducing GHG emissions
World Bank 2011 Review.
There are two types of carbon market: the compliance market and the voluntary market. The difference between the two is basically that buyers in the compliance-based markets are fulfilling their regulatory duties to reduce emissions, whereas in the voluntary markets they are there because they want to be.
The Voluntary Market
The voluntary market (retail, spot-market) has emerged as a means of allowing industrial, household and corporate entities to be seen to be doing something about global warming.
Our research and experience shows that the most successful global companies understand this and prefer to source credits from the voluntary market. With major household names such as: Virgin; Aviva; Co-Op; Marks & Spencer; Tesco and Barclays aiming for carbon neutrality, it is our opinion that the competitive pricing of the voluntary market means that it has the potential to outperform the compliance-based markets.
If we understand what the smart people are thinking, what the smart people are doing, then indeed the trend or the path of natural consequences will be discernable.
Source: Ecosystem marketplace, Bloomberg New Energy Finance
More men adore the sun rising than the sun setting
By understanding what the smart people are thinking and doing, we can predict the natural path of a trend.