That the event was hosted at J.P. Morgan was the first sign that times have changed in the environmental community. Saving the environment isn't just the purview of environmentalists anymore. With the growth of international carbon markets, reducing carbon dioxide emissions has become the job of brokers and traders as much as anyone else.
At one point during the conference, one of the panelists, Mark Trexler, questioned whether this was a good thing or a bad thing. Trexler, who has an extensive background in environmental science, questioned whether the money to be made off the carbon markets was obscuring their true purpose of reducing carbon emissions.
A carbon broker responded that liquidity and fungibility - both things provided by the trading community - are crucial to a well-functioning, effective carbon market. He argued that the environment was better served by having the big boys playing. And the big boys are certainly playing: Merrill Lynch earlier this year invested $9 million in an avoided deforestation project in Indonesia, while big brokerage firms such as Cantor Fitzgerald have started their own carbon trading arms (CantorCO2e).
At Carbonfund.org, we tend to agree with the broker. While it may be intimidating for a nonprofit like us to go up against companies like Merrill Lynch, investing $9 million toward protecting forests in Indonesia is clearly good for the environment. Meanwhile, CantorCO2e has allowed us to better respond to our donors by helping us find quality carbon offset projects around the world.
One of the most interesting parts of the conference was the post-conference mingling. I chatted with a former bond trader from New Jersey, a banker from New York, and an investor from Brazil. They didn't strike me as environmentalists. But they were helping save the environment, and yes, making money while doing it.
That the event was hosted at J.P. Morgan was the first sign that times have changed in the environmental community. Saving the environment isn't just the purview of environmentalists anymore. With the growth of international carbon markets, reducing carbon dioxide emissions has become the job of brokers and traders as much as anyone else.
At one point during the conference, one of the panelists, Mark Trexler, questioned whether this was a good thing or a bad thing. Trexler, who has an extensive background in environmental science, questioned whether the money to be made off the carbon markets was obscuring their true purpose of reducing carbon emissions.
A carbon broker responded that liquidity and fungibility - both things provided by the trading community - are crucial to a well-functioning, effective carbon market. He argued that the environment was better served by having the big boys playing. And the big boys are certainly playing: Merrill Lynch earlier this year invested $9 million in an avoided deforestation project in Indonesia, while big brokerage firms such as Cantor Fitzgerald have started their own carbon trading arms (CantorCO2e).
At Carbonfund.org, we tend to agree with the broker. While it may be intimidating for a nonprofit like us to go up against companies like Merrill Lynch, investing $9 million toward protecting forests in Indonesia is clearly good for the environment. Meanwhile, CantorCO2e has allowed us to better respond to our donors by helping us find quality carbon offset projects around the world.
One of the most interesting parts of the conference was the post-conference mingling. I chatted with a former bond trader from New Jersey, a banker from New York, and an investor from Brazil. They didn't strike me as environmentalists. But they were helping save the environment, and yes, making money while doing it.