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How Not to Miss a
Trillion-Dollar Opportunity |
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By Nick Hodge | Monday, March 17th, 2008 |
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What better than by going green? |
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That must've been
the idea lurking in the back of the minds of the decision makers over at
the New York Mercantile Exchange (NYMEX). Today, they're unleashing a
new trading platform called the Green Exchange.
The exchange is a joint venture between NYMEX, Evolution Markets, Morgan
Stanley and Merrill Lynch, among others. The idea is to trade carbon
credit contracts and futures in a world where the greenhouse gas is
increasingly becoming commoditized.
If you've been keeping up on my carbon market chronicling, you know that
the U.S. already has a small emissions-trading market. It's called the
Chicago Climate Exchange, but its stature will be dwarfed when this new
market is unveiled. |
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The Green Exchange and the Extended Reach of Carbon Emissions |
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Beyond merely
buying and selling contracts for greenhouse gases, there are myriad
other opportunities to profit from
the carbon market.
Just take a look at what some of the financial heavyweights have done
lately: |
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- Citigroup has
pledged $50 billion for green initiatives over the next ten years
- Bank of America has
made a similar $20 billion commitment
- Citi, JPMorgan Chase
and Morgan Stanley are now taking carbon emissions into
consideration when deciding whether or not to finance new dirty
power plants
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These guys know that carbon now has a price--one that is
expected to rise drastically--and they're doing everything they can to
profit from it and hedge against it. |
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Are You Taking Advantage of California's Clean-Air
Cash-Outs? |
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Across the
country, a group of Americans recently started cashing in on one of the
greatest moneymaking secrets of the decade... It's an opportunity to
collect massive checks in the mail -- all because of laws that are now
forcing major corporations reduce their emissions.
One affluent American uses this secret to pull in $3,082.25 every 30
days...Another already added $70 million to his estate. In fact, they're
so profitable that the New York Times recently reported, "The handful of
domestic ‘Clean-Air Cash-Out' stocks has been surging.
Click
Here to find out how -- right now -- you could still take advantage of
the biggest ‘Cash-Out' yet.
They also know that
clean energy
(and cleaner energy) are leading the fight against caustic emissions.
And as the cost of carbon goes up--both economically and
ecologically--countries, states and companies will be forced to invest
in and purchase clean technologies.
But in addition to spurring spending on clean technologies, the advent
of the Green Exchange provides some symbolic meaning as well. First off,
it reverses the former U.S. position of abstaining or even denouncing
any sort of emission caps or cap-and-trade system.
Secondly, it hints at the future of climate initiatives in the U.S. In
fact, if the frontrunner among several Congressional climate change
bills is passed, New Energy Finance estimates the American market for
emissions could reach $1 trillion by 2020. |
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Profiting Without Trading Carbon |
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The most important
thing to realize in view of these recent carbon market developments is
that you don't actually have to trade carbon contracts to profit from
the trend.
You see, generating carbon credits requires heavy investment in
technologies that reduce emissions. That means a ramp-up in solar, wind
and geothermal projects and the like.
But it also means cleaning up the emissions of dirtier sectors like
coal- and natural gas-fired power plants, industrial plants and
transportation.
So it possible to invest in the companies that provide these solutions
as a way to leverage the exploding carbon market.
A recent Environmental Protection Agency (EPA) announcement provides a
prime example. Last week, the EPA announced strong new pollution
controls on the nation's locomotives, ships and passenger ferries.
And while some of the projects resulting from that decision could
potentially harvest and sell carbon credits, a few companies are also
going to profit handsomely from the billions it will cost to clean up
the nation's trains and vessels.
Wouldn't it be nice to know what companies will be getting those
contracts and invest in them before the run-up in stock price?
It just the latest in our world. Healthy Home, energy efficient
and Green Living is going to change the future. |
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