Climate change is an unprecedented global problem and an emerging carbon
finance market will play a critical role in addressing it, asserts a newly
published Yale report.
"This publication represents a major advance in our understanding of the
interrelationships of government policy, private markets, and technology in the
climate arena," says Brad Gentry, director of the Center for Business and the
Environment at Yale, in the report's foreword.
According to a 2007 United Nations report, 85 percent of the multibillion
dollar investment to address climate change now comes from the private sector,
not government. The global carbon market logged $64 billion in trades in 2007
and is on track to top $100 billion this year. One recent forecast predicted
that the trade would reach $1 trillion annually by 2020, assuming that the
United States joins the market with the passage of a cap-and-trade system now
being discussed in Congress.
The report "Carbon Finance: Environmental Market Solutions to Climate Change"
grew out of a carbon finance speaker series sponsored by the Emily Hall
Tremaine Foundation and organized by the Center for Business and the
Environment at Yale, in which corporate leaders and investors from around the
world discussed how financial markets are playing a major, positive role in
providing solutions to environmental problems.
Co-edited by program director Bryan Garcia and researcher Eric Roberts, both
with the Center for Business and the Environment at Yale, and published by the
Yale School of Forestry & Environmental Studies, the report is a compilation of
lectures on, among other themes, the problem-solving role of finance in
confronting climate change; the need for investors to factor climate change
into their investment strategies; the value of carbon and renewable energy; the
role of regulation in a functioning environmental market; climate change
funding and investment by foundations; hedge funds and climate change; venture
capital and the challenge of funding new technologies; the link between the
insurance industry and climate change; and the complexities and opportunities
facing the forest products business.
"This publication is a timely resource, especially as the northeastern United
States embarks on a major carbon market program through the Regional Greenhouse
Gas Initiative," said Gus Speth, dean of the environment school. "Since carbon
now has a price, RGGI can be effective in reducing greenhouse gas emissions."
AplusA-online.de - Source: Environmental Protection