How Not to Miss a Trillion-Dollar Opportunity

 
  By Nick Hodge | Monday, March 17th, 2008  
     
  What better than by going green?  
     
 

That must've been the idea lurking in the back of the minds of the decision makers over at the New York Mercantile Exchange (NYMEX). Today, they're unleashing a new trading platform called the Green Exchange.

The exchange is a joint venture between NYMEX, Evolution Markets, Morgan Stanley and Merrill Lynch, among others. The idea is to trade carbon credit contracts and futures in a world where the greenhouse gas is increasingly becoming commoditized.

If you've been keeping up on my carbon market chronicling, you know that the U.S. already has a small emissions-trading market. It's called the Chicago Climate Exchange, but its stature will be dwarfed when this new market is unveiled.

 
     
  The Green Exchange and the Extended Reach of Carbon Emissions  
     
 

Beyond merely buying and selling contracts for greenhouse gases, there are myriad other opportunities to profit from the carbon market.

Just take a look at what some of the financial heavyweights have done lately:

 
     
 
  • Citigroup has pledged $50 billion for green initiatives over the next ten years
  • Bank of America has made a similar $20 billion commitment
  • Citi, JPMorgan Chase and Morgan Stanley are now taking carbon emissions into consideration when deciding whether or not to finance new dirty power plants
 
     
  These guys know that carbon now has a price--one that is expected to rise drastically--and they're doing everything they can to profit from it and hedge against it.  
     
  Are You Taking Advantage of California's Clean-Air Cash-Outs?  
     
 

Across the country, a group of Americans recently started cashing in on one of the greatest moneymaking secrets of the decade... It's an opportunity to collect massive checks in the mail -- all because of laws that are now forcing major corporations reduce their emissions.

One affluent American uses this secret to pull in $3,082.25 every 30 days...Another already added $70 million to his estate. In fact, they're so profitable that the New York Times recently reported, "The handful of domestic ‘Clean-Air Cash-Out' stocks has been surging.

Click Here to find out how -- right now -- you could still take advantage of the biggest ‘Cash-Out' yet.

They also know that
clean energy (and cleaner energy) are leading the fight against caustic emissions. And as the cost of carbon goes up--both economically and ecologically--countries, states and companies will be forced to invest in and purchase clean technologies.

But in addition to spurring spending on clean technologies, the advent of the Green Exchange provides some symbolic meaning as well. First off, it reverses the former U.S. position of abstaining or even denouncing any sort of emission caps or cap-and-trade system.

Secondly, it hints at the future of climate initiatives in the U.S. In fact, if the frontrunner among several Congressional climate change bills is passed, New Energy Finance estimates the American market for emissions could reach $1 trillion by 2020.

 
     
  Profiting Without Trading Carbon  
     
 

The most important thing to realize in view of these recent carbon market developments is that you don't actually have to trade carbon contracts to profit from the trend.

You see, generating carbon credits requires heavy investment in technologies that reduce emissions. That means a ramp-up in solar, wind and geothermal projects and the like.

But it also means cleaning up the emissions of dirtier sectors like coal- and natural gas-fired power plants, industrial plants and transportation.

So it possible to invest in the companies that provide these solutions as a way to leverage the exploding carbon market.

A recent Environmental Protection Agency (EPA) announcement provides a prime example. Last week, the EPA announced strong new pollution controls on the nation's locomotives, ships and passenger ferries.

And while some of the projects resulting from that decision could potentially harvest and sell carbon credits, a few companies are also going to profit handsomely from the billions it will cost to clean up the nation's trains and vessels.

Wouldn't it be nice to know what companies will be getting those contracts and invest in them before the run-up in stock price?

It just the latest in our world.    Healthy Home, energy efficient  and Green Living is going to change the future.

 
 
 
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