Carbon Farmers

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A Trillion Dollar Marketplace!

The world environmental commodities markets are approaching $1 trillion in “market capitalization.” This includes both global and local markets as well as compliance and voluntary markets.

According to Gareth Phillips and Assaad Razzouk of Sindicatum Carbon Capital, “this figure is derived from a top-down analysis of the current value of emissions markets around the world to the end of 2012, based on volume and price data drawn from third-party sources.”

Their analysis puts the Chicago Climate Exchange and the Voluntary Carbon Standard at $50 billion. This is larger than both the US sulphur dioxide market and the US nitrogen oxide market combined.

As the US moves to a compliance market, the capitalization for the Chicago Climate Exchange will increase dramatically. Already, 15 states have enacted mandatory legislation for the creation of a compliance market.  Momentum of this nature is hard to ignore, both from a policy and financial perspective.  For forestry to successfully participate in this marketplace, aggregation will be a key component providing the scale necessary to efficiently achieve a positive economic outcome for landowners.

Carbon Farmers, LLC is a member of the Chicago Climate Exchange