Largest Cleantech Industry is…Carbon Credits at $63 Billion
Emerging out of thin air, it has already surpassed solar and wind as the largest cleantech industry. Carbon credits were worth a staggering $63 billion in 2007 and $59 billion in the first half of 2008 alone.
Europe has dominating the carbon market since its creation less than five years ago. EU’s Emissions Trading Scheme (EU ETS) was responsible for 70% of the trading in the first half of this year, totaling $47 billion. This dollar amount is likely to increase as the cost of carbon credits soars and with the inclusion of aviation emissions in 2012.
Obviously an industry of this amount of rapid growth opens many business opportunities. Companies are needed to provide verified emissions offsets, energy efficiency audits, greenhouse gas emission audits, and to design carbon software. This industry has gained considerable interest from venture capitalists.
Carbonetworks of Victoria, British Columbia provides software to evaluate carbon footprints and reduction options for businesses, governments, project developers, and consultants. They are located in one of the few areas in North America with a carbon tax. They recently announced the first close of a $5 million Series A round from NGEN Partners.
CarbonFlow of San Francisco is developing software to lower the time and cost of creating carbon credits. They raised $2.9 million in the first round of funding from OVP Venture Partners, Meridian Energy, and Clean Pacific Ventures. CarbonFlow partnered with Det Norske Veritas of Norway for developing and marketing their system.
The infrastructure isn’t fully in place to support such a large industry and business opportunities are plentiful. If the U.S. and China create large-scale carbon trading systems, the sky is the limit for growth in the carbon trading industry.
Although it is great to see action being taken to reduce greenhouse gas emissions, carbon credits can be a way for an organization to throw money at a problem instead of taking action to reduce their own carbon footprint of their operations. The effectiveness of carbon markets has been questioned, yet this industry doesn’t seem to be going anywhere any time soon. Both McCain and Obama support a cap and trade system for the U.S.
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July 30th, 2008 at 2:18 pm
With all of the financial interest in the trading schemes, how much carbon dioxide is actually being prevented from entering the atmosphere?
Will the auditors and analysts do anything to make the world a greener place or will they just move green – or whatever color Euros are – from one pocket to another, taking a few points in each direction?
July 30th, 2008 at 4:44 pm
It is in the financial best interest of an organization to reduce their emissions rather than buy credits. Keep in mind too that many carbon credits are from actual emission reductions initiatives rather than offsets.
July 30th, 2008 at 6:07 pm
It’s all about the money. Al invented the crisis & now he is the single biggest finacial benifactor. Sure hasn’t made him change his investments in Oxidental nor his overconsumptive life style. Remember, do as I say, not as I do.
What a joke!
July 30th, 2008 at 8:11 pm
[...] 31, 2008 in Mr Green Archive Written by Sarah Lozanova Published on July 30th, 2008 2 Comments Posted in business, carbon emissions, energy [...]
July 31st, 2008 at 8:30 am
A complete sham industry, 21st Century equivalent of the dot.com mania of the 1990’s. It really sounds like make-work for unemployed accountants and scientists who gather data and that’s about all. Bring on global warming…I’m all for a clothing optional world.
July 31st, 2008 at 8:37 am
Wow all that money and for what? The right to say you are throwing money away?
-=fred=-
July 31st, 2008 at 9:13 am
Check out last weeks episode of Penn & Tellers they tackle this VERY issue. People are so guilt ridden by this ‘green’ movement they are willing to give money to a complete stranger for their “Carbon Credits”.
At LEAST the snake oil salesmen of the west gave you a bottle filled with some sort of liquid… you don’t even get that for a “Carbon Credit”.
July 31st, 2008 at 9:38 am
Environmental confession is big business.
July 31st, 2008 at 10:10 am
I understand people’s skepticism about voluntary carbon credits. Keep in mind that of the $63 billion in carbon credits from 2007, voluntary carbon credits were worth only $331 million. A majority of the carbon trading is mandatory and not guilt driven.
July 31st, 2008 at 10:52 am
It can be a great tool to limit emissions. But like all other businesses it has attracted questionable entities trying to make a buck one way or the other. Check this article –
http://blogs.wsj.com/environmentalcapital/2008/04/14/carbon-credits-un-raises-questions/
Real size of this market is difficult to predict amid the hype that is going on right now. Carbon trading is still just a fancy tool that traders and investors have invented. It has a long way to go before it can make any meaningful impact.
July 31st, 2008 at 12:24 pm
[...] staggering $63 billion in 2007 and $59 billion in the first half of 2008 alone. scooby doo magazinesread more | digg [...]
July 31st, 2008 at 1:37 pm
[...] Original Oilweek Magazine | Oil and Gas Industry News [...]
July 31st, 2008 at 8:22 pm
oh yes what a great global tax scheam! i cant wait to have to pay extra $$ at the pump for my carbon tax! what the hell good is this gonna do but take more of our money and give it to the goverment? oh yes what a great plan lets tax carbon one of the most abondant things on earth! why dont we just tax water while we are at it?
August 7th, 2008 at 12:03 am
Environmental issues are only discussed allover the world but not implemented. There is zero work on the ground.
August 8th, 2008 at 9:27 am
[...] communications manager for almost a year now, and a lot has happened during that time. Apparently, carbon credits are now the world’s biggest clean tech industry, worth $63 billion – bigger even that the solar or wind industries. The voluntary carbon market is [...]
August 22nd, 2008 at 2:01 pm
[...] Largest Cleantech Industry is…Carbon Credits at $63 Billion [...]
June 24th, 2009 at 9:18 am
Funny you never hear this sort of thing on mainstream media isnt it?
July 6th, 2009 at 3:24 am
I had no idea it was such a big industry!
September 17th, 2009 at 7:56 am
Can anyone tell me who “invented” the idea of carbon credits and give me a source that explains how it moved from idea to reality?