Wednesday, September 09, 2009

Plunging prices at the Chicago Climate Exchange

CCX CFI End of Day Summary: Offsets now selling for 25 cents each

[2008: Offsets were selling for over $7 each]

[Spin from Sept 9, 2009]: "Carbon market evolving"
"The U.S. appetite for carbon trading is strong CCX is now trading 3,000 to 5,000 contracts per day, with 20 percent of the largest carbon dioxide-emitting utilities in the U.S. participating; 11 percent of the Fortune 500 companies; and 17 percent of the Dow Jones Industrials companies."

A recent Congressional Budget Office study projected that carbon offsets could be a $60 billion market in 2012, on a par with U.S. corn and wheat markets, and “as it grows beyond that, it will make forestry mitigation opportunities more important,” says Jeffrey O’Hara, senior economist, Chicago Climate Exchange (CCX).
Flashback: Coyote Blog » Cash for Clunkers: $416 Per Ton of CO2 Reduction
The $416 figure per ton of CO2 avoided may actually be low, as it does not include the well-documented rebound effect of people with higher MPG cars driving more miles


Anonymous said...

Carbon offsets will be worth nothing if/when the whole man-made global warming theory is publicly discredited. If you are trading carbon dioxide emission rights, you are taking a huge financial risk. When the music stops, some people will be left standing...

Anonymous said...

Unfortunately, this market gives corporations an incentive to buy into the thoroughly discredited AGW concept. The elites in DC and the media will win out eventually, no matter what the science indicates. Sorry for the cynicism.

cbullitt said...

Saw this at Anthony's. Best laugh I've had in months.

Anonymous said...

The idea of a cap and trade market like the Chicago Climate Exchange is to reduce carbon pollution in the most economic manner. Unfortunately, the world economy is in crisis, so carbon pollution has dropped in a similar manner. Thus the market is working as it should since the market participants are not driving a high demand for the purchase of carbon offsets. When the economy rebounds, businesses will get back to finding a way to reduce their carbon pollution in the most efficient manner, e.g. introducing more energy efficient technologies, manufacturing processes, etc. (or trading carbon offsets if this is the most economical option option). This process of making our economy more energy efficient a good thing for business competitiveness, as well as for our society and planet whether you accept the theory of climate change or not.