Markets & Policy

The Carbon Market

The emerging global carbon market is growing exponentially as states and countries around the world use the power of the "market" to control greenhouse gas emissions. In the US, a voluntary market has sprung up to help provide a method to to track these emission reductions for concerned individuals and businesses.  Carbon offset and renewable energy credits typically represent investments in alternative energy enterprises, energy efficiency technology development and forestry- or agricultural-related (carbon sequestration) projects. Evolution Sage has made a organizational decision to only support projects that cut emissions directly, such as energy efficiency and renewable energy efforts.

Carbon market refers to the buying and selling of emissions permits that have been either distributed by a regulatory body or generated by greenhouse gas emission reductions projects. Six greenhouse gases are generally included in "carbon" markets: carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, hydro fluorocarbons and per-flourocarbons. Greenhouse gas emission reductions are traded in the carbon market as carbon credits, representing the reduction of greenhouse gases to one metric ton of carbon dioxide (the most common greenhouse gas). Carbon markets enable units of pollution to be converted into units of property, making it possible to exchange pollution from one place in the world with somewhere else. This leads to polluters having to decide between accepting the cost of added pollution, changing of fuel mixes or conserving of energy.

There are two major markets evolving for the trading of carbon, the compliance (regulatory) and the voluntary markets.

More carbon market information can be found at:

• The Katoomba Group's Ecosystem marketplace
• International Emissions Trading Association
• Point Carbon

Greenhouse Gas Policy Trends

A number of bills have been proposed in the U.S. at the federal level in both the Senate and the House of Representatives. Even though none of these measures have successfully become federal law, many executives acknowledge that it is only a matter of time before greenhouse gas curbing legislature is passed. Despite the complexity of the issue, Washington is beginning to move toward a potential consensus, with business at the table. Recent legislation that passed in California and Hawai'i is a significant motivator to industry to push for a coherent national policy.

Certain industries are already facing mandatory limits on emissions of carbon dioxide and other greenhouse gases in some of the countries that have signed the Kyoto Protocol. Many U.S. cities are also rushing to impose their own greenhouse gas regulations. A surprising number of companies in "old industries" like oil and materials are acting quickly to calculate and reduce their emissions. This shift in behavior is due to hard-nosed business calculations.

Four out of five Americans support efforts to limit the impact of Global Warming. However, individuals must act immediately if we are to change our trajectory and re-tool our economy. Going carbon-neutral with offsets from Evolution Sage allows you to immediately make a difference and help kick-start a new clean energy infrastructure in Hawai'i.

Why is there widespread support for the regulation of greenhouse gases?