05/23/23 - Philip's Carbon Market News

Carbon Markets Heating Up: How to Invest NASDAQ, May 22, 2023- Carbon markets have been heating up recently thanks to new regulations, the rising number of emission trading systems, and the growing desire on Wall Street to provide retail investing options. In this article, we’ll look at the types of carbon markets and how to invest in them.

Article describes both kinds of carbon markets; Voluntary Carbon Markets and Emissions Trading Schemes in detail.

Carbon markets were created to provide carbon offsets, credits, or allowances that are measured in metric tons of carbon dioxide or equivalent. One credit equates to the reduction, sequestration, or offset of one ton of carbon dioxide or the equivalent amount of different greenhouse gases, which include:

Carbon dioxide (CO2) is a product of cellular respiration, you breathe it out, and plants absorb it.

Methane (CH4) is the principal constituent of natural gas and cow burps.

Nitrous oxide (N2O) is also known as the laughing gas and is used as a rocket propellant.

Perfluorocarbons (PFCs) are man-made compounds containing only carbon and fluorine that have historically been a by-product of the electrolysis process in aluminum smelting.

Hydrofluorocarbons (HFCs) are man-made compounds containing fluorine and hydrogen that are frequently used in air conditioning and refrigeration.

Sulfur hexafluoride (SF6) is naturally occurring but primarily man-made and is used in the electrical power industry as a gaseous dielectric medium, in semiconductor manufacturing, and in the casting of magnesium.

(Note the term “CO2e” means Carbon Dioxide Equivalent!)