Biochar’s Likely Market Impacts

Biochar is still mostly a research and cottage industry, yet it has the potential to impact returns for a broad range of investors. Tom Konrad, Ph.D., CFA Biochar, or amending soil with biomass-derived carbon, shows great potential to improve the productivity of soils, as well as to increase the utilization of fertilizers by plants, while sequestering carbon to reduce the drivers of climate change.  On August 10, I went to the 2009 North American Biochar Conference to look at the potential for investors.  Before I went, I took a look at the publicly traded companies...

GlyEco Expands Antifreeze Recycling Footprint

by Debra Fiakas CFA Glyeco recycles waste glycol into reusable antifreeze, windshield wiper fluid and air conditioning coolants for the automotive and industrial markets.   The used coolant and antifreeze liquids are frequently contaminated with water, dirt, metals and oils.  The company uses a proprietary technology at the foundation of its recycling system to eliminate contaminants.  The company focuses mainly on ethylene glycol in its six processing plants. Last month chemical recycler GlyEco, Inc. (GLYE:  OTC/QB) acquired Brian’s On-Site Recycling, a provider of antifreeze and air conditioning coolant disposal services in the Tampa, Florida area.  The deal extends...

Climate Change Will Hurt The Poor Most But the Solutions Don’t Have To

The International Center for Appropriate and Sustainable Technology (iCAST) helps communities use local resources to solve their own problems.  I've been a fan of iCAST's approach of teaching people how to fish (or, in this case, how to apply sustainable technologies) rather than giving away fish since I first encountered them at a conference in 2006.  Last week, they took advantage of some of their own local resources (namely the fact that the DNC was in Denver) to organize a luncheon with a panel of nationally recognized speakers, any one of whom would have been enough to draw a...

Avoiding a Carbon-Price Backlash

by Tom Konrad, Ph.D. Economics and Greenery, a Belated Rapprochement It is truly a triumph of economic ways of thinking that many of environmental activists are championing market-based approaches to tackling climate change.   Those people who are not for cap-and-trade on global warming gas emissions promote the even more economically rigorous carbon tax.  The most common defense against criticisms of subsidies for renewable energy is to retort that the fossil fuel industry benefits from much large subsidies.  Not only do fossil fuels get generous subsidies in direct and indirect payments, but they seldom pay anything like the indirect costs...

Carbon Finance…The Next Bonanza

Few investors outside of Europe have ever heard of the term carbon finance. What some investors might have heard, however, is that Goldman Sachs took, on September 20, 2006, a 10.1% stake in a little outfit known as Climate Exchange plc (LSE:CLE) for approximately $23 million. Admittedly, by Goldman Sachs standards, that’s peanuts. Not to be outdone, Morgan Stanley unveiled a plan on Thursday October 26 to invest a whopping $3 billion in global carbon markets over the next few years…now that’s the kind of money that gets folks talking at the water cooler, especially when it’s in something...

Has Shale Gas Reduced Carbon Emissions?

Jim Hansen Last week, I wrote that the U.S. is on course to set a new export record of coal. A few days later the EIA made similar projections and estimate that exports will reach 125 million tons for 2012. One side effect of the success of U.S. coal exports is the degree to which may they have cancelled out the carbon emissions reduction experienced in the U.S. as shale gas displaced coal in the power generation sector. This question of displacement was addressed in a study just released by researchers at the University of...

The Republican-Proposed Carbon Tax

by Noah Kaufman A group of prominent conservative Republicansincluding former Secretary of State James Baker III, former Treasury Secretary Hank Paulson, former Secretary of State George Shultz and former Walmart Chairman Rob Waltonmet with key members of the Trump administration on Wednesday about their proposal to tax carbon dioxide emissions and return the proceeds to the American people. Such an economy-wide tax on carbon dioxide could enable the United States to achieve its international emissions targets with better economic outcomes than under a purely regulatory approach. Attributes of the Republican Carbon Tax Proposal While the details on the...

Ten Insights into Carbon Policy and Its Implications

On November 27, I attended the National Renewable Energy Laboratory's (NREL) Fifth Energy Analysis Forum, hosted by NREL's Strategic Energy Analysis & Applications Center.  The forum focused on carbon policy design, the implications for Renewable Energy and Energy Efficiency.  As a stock analyst focused on that sector, I am extremely lucky to have NREL as a local resource: the quality and the level of the experts at NREL and the ones they bring in is probably not matched anywhere in the country, and conferences like these provide priceless insights into what these Energy Analysts are thinking.   Why should investors...

NYMEX To Get Involved In Emissions Trading

A senior NYMEX official told reporters Wednesday that the exchange was considering getting into the business of carbon emissions trading. Given the actual, but especially the potential, size of this market, it makes sense that established bourses would take a good hard look at it. This will probably not be seen as very good news by the folks at Climate Exchange plc . Of course, until NYMEX actually unveils anything substantial, this will remain nothing but chatter.

A New Player In The North American Emissions Trading Sector

Over the past two weeks, a couple of announcements were made that went mostly unnoticed despite their importance to the North American carbon marketplace. Firstly, on May 30, the Montreal Exchange, a derivatives exchange, announced that it was launching an emissions trading market for CO2. The Montreal Exchange is now a unit of the TSX Group (TSXPF.PK or X.TO), the firm that runs all of Canada's exchanges. The second announcement came last week, when the premiers of Quebec and Ontario, Canada's two largest provinces and the heart of its industrial base, announced that they were moving ahead...

Some Tidbits From The World Of Emissions Trading

To be sure, the near-term prospects for carbon emissions trading are bleak. Continued decline in industrial production across the world's major manufacturing economies will inevitably lower carbon emissions. The clearest indicator of this, short of directly measuring emissions, is a sharp decline in the price of various fossil energy commodities (i.e. oil, natural gas and coal) on the back of falling demand. Another important factor for carbon emissions trading is that the commodity in play - the regulatory right to emit a unit of carbon dioxide equivalent (CO2e) - derives its legitimacy entirely from a regulatory scheme...

Is Energy Sourcing the Gateway Drug to Energy Efficiency?

Tom Konrad CFA I recently interviewed Richard Domaleski, CEO of World Energy Solutions (NASD:XWES).  World Energy is a comprehensive energy management services firm whose core offering is extremely price competitive energy sourcing (that is, finding an energy provider to supply all of a client's energy needs at the lowest possible cost.)  They achieve competitive sourcing using an electronic energy exchange designed to achieve much better price discovery in what is traditionally a very opaque market.  According to Domaleski, a recent KEMA study showed that only 7% of large commercial, industrial, and government customers are sourcing their...
emissions trading/ carbon tax and trading world map

List of Environmental Markets Stocks

Environmental market stocks are publicly traded companies whose business involves the trading of commodities designed to represent an environmental attribute, such as renewable electricity, the environmental benefits of renewable energy (Renewable Energy Credits ), Carbon Offsets and other types of environmental offsets.    Carbon emission trading implemented    Carbon emission trading scheduled    Carbon tax implemented    Carbon tax scheduled    Carbon emission trading or carbon tax under consideration By Tbap , via Wikimedia Commons Crius Energy Trust (KWH-UN.TO, CRIUF) GlyEco, Inc. (GLYE) Hannon Armstrong Sustainable Infrastructure (HASI) Just Energy Group Inc. (JE) Trading Emissions PLC (TRE.L) If you know of any environmental market stock that is not listed here and...

Update on the Global Carbon Market

The World Bank Carbon Finance Unit recently released its Q3 2006 update for the global market for CO2 emissions (the carbon market). The document, entitled “State and Trends of the Carbon Market 2006��? (PDF file), contains some pretty interesting information that makes it difficult not to be bullish on the future of emissions trading. Here are some numbers. At the end of Q3 2006, the total value of the market stood at $21.5 billion, up 94% on the whole of 2005 ($11.1 billion). Unsurprisingly, Europe, with its Emissions Trading Scheme, continues to account for the bulk (~99%) of...

Dead Wrong On Climate Exchange

In a May 8 post I opined that, although I believed that recent developments on the climate change file in the US would bode well for Climate Exchange plc (CXCHF.PK), I thought that the stock was overpriced and had had too great a run for its own good over the past 3 months. I therefore predicted that the next move the stock would make would be to the downside. Climate Exchange was trading at around $28 then, and today it is trading in the neighborhood of $36. I continue to believe that this stock is going way too...

Trading Places: Will America’s Carbon Market Outsize Europe’s?

Charles MorandIn early January, I said the following on the likelihood that the Obama Administration would move on carbon regulations in the near-term: "The next 12 to 18 months are unlikely to produce much in the way of vigorous environmental action on the part of government (barring subsidies for alternative energy related to the stimulus package), especially if it means additional costs on industry." Clearly, I had underestimated the power of another fundamental rule of politics - besides "don't anger the rust belt states that gave you your presidency by burdening their industries with avoidable costs in the midst...