Green finance special section
EXCITEMENT ABOUT THE market for greenhouse gases is rising even faster than global temperatures. Investment banks that are already active in the market are doubling their teams, while those that aren’t are quickly trying to build them. But although there is a compelling need for some banks to be present in the market to serve existing clients, and the opportunities are attractive, so far most of the real money is being made by other types of participants.
The non-financial technicalities of emission reduction projects, which generate tradable certified emission reduction certificates (CERs), and the lack of regulatory clarity in what is essentially a market created by regulation, is encouraging more and more banks, especially those late to the game, to seek equity stakes or partnerships as a means of gaining expertise.
The market for greenhouse gases has directly created three main areas of business opportunity:...
