How to Profit from Carbon Credits
Carbon credits are the new buzz words in the world of investing. These credits which are awarded to countries, organisations or companies which have reduced their green house gasses below their emission quota, can now be traded, with top investment houses such as Morgan Stanley and Goldman Sachs having set up carbon trading departments. Here, London Carbon Credit Company (http://www.londonccc.co.uk/) explains how both private and institutional investors can profit from carbon credits.
Created at the Kyoto Protocol of 1997, carbon credits were devised to reduce the harmful greenhouse gas emmissions of polluting corporations. These carbon offsets are individually equal to offsetting one tonne of damaging greenhouse gasses and they represent a vital way companies can reduce their carbon footprint.
These carbon credits came to the attention of investors when they started hitting the headlines for their profit potential as commodities, and not just as environmentally beneficial carbon offsetting. The New York Times billed them as “one of the fastest growing specialities in financial services” and Fortune magazine said that “all the big global investment banks….are hurrying into carbon finance”.
Trading carbon offers the investor a way to grow their credits with the help of a portfolio manager. The carbon credits can be used to offset an individual company’s carbon footprint or, with the right assistance from a carbon broker, they can be sold on the open market for a high ROI. Trading emissions essentially gives companies the right to emit a certain volume of Co2, a right which carries great weight, which in turn makes carbon credits a tangible and valuable asset, ripe for investment.
Find out how you can enter into the lucrative and environmentally conscious world of green investments at http://www.londonccc.co.uk/.