I am posting this new thread to open up a discussion on some strategies or preferred stocks with the context of the possibility of global carbon trading. I have been thinking about this topic for some time and we are already begining to see changes in markets, bio-fuels and uranium in my belief are only a precursor to what might happen. We are all aware of the tax benefits for R&D in “green energy”, however tax benefits don’t necessarily equal profits or the potential for dividends. Carbon Trading may be the next boom after (or at the same time) commodities, especially if hedge funds have an eventual hand in things.
I realise there is a parallel thread that has been started in relation to preferred stocks for global warming, however whether or not you believe in global warming, the fact that carbon trading will become potentially something that is bought, sold and speculated on will potentially change the way we look at markets.
Wind farms will become like miners a product to sell to sell into the grid, Agro-forestry companies may not only be harvesting timber, and they might also have credits to trade. On which companies will potential government imposed purchase of carbon credits have the largest negative impact?
Well this article (attached), although long, gives some great insights into the background and future direction behind the “green, clean, user pays dream” that is carbon trading.
Looking forward to your comments and stock suggestions