How to invest in Carbon
From Sharlene Goff, in the Financial Times (2006-07-29):
There are a number of routes for private investors to gain access to the carbon trading market. …
- You can get direct exposure to carbon reduction projects by going through a broker, such as Evolution Markets or TFS. These companies have links to energy project developers and can seek out suitable investment opportunities for you. The idea is that you take a share of the emission reduction certificates awarded to the project, which can then be sold on.
- There are also some niche funds in the market. One example is Icecap, which acts as a hedging tool for utilities firms. The group sources and manages a portfolio of carbon credits of behalf of its participants - utility firms or trading houses.
- If you have a significant amount of capital, you could even set up your own project. But this is risky and requires a sound knowledge of the market, as well as links with buyers of carbon credits. …
If you want less involvement in the actual project, you could …
- Place a spread bet through IG Index on the price of carbon.
- Invest in a fund or shares of a company that has exposure to the carbon emissions theme. A number of companies, such as Camco, Ecosecurities and Econergy, have recently floated on the Alternative Investment Market.
- Or, if you want to do you bit for climate change but don’t have large amount to invest, then you can offset your carbon emissions by effectively buying back credits via websites such as www.climatecare.org and www.carbonneutral.com.