Can carbon markets help out the recession?



  1. 0 Votes

    I think so, but it depends on how the carbon market is structured, who’s buying and selling, and what they’re doing with the proceeds. Carbon emissions trading is an interesting concept that proposes to motivate environmental action through financial means: a company does something to create a carbon offset, which is then quantified economically, and the offset can then be sold to another company on an exchange like stock or commodities. The actions taken to generate carbon offsets can be anything from trapping methane at a landfill to instituting silvicultural practices and sustainable forestry. The theory is that companies will make more money with the credits than they will spend in taking the actions to create them. What do they do with the excess money? If they put it into developing more green jobs or increasing their productivity, then yes, clearly it can help out with the recession in terms of creating jobs. If they use it to buy more carbon offsets, it probably won’t help that much, at least not directly. I think it depends on each individual company.

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