How to Profit From Carbon Investing While Combatting Climate Change

Money For the Rest of Us

J. David Stein

Investing, Investing Podcast, Business, Economics, Economy

4.5 • 1.4K Ratings

🗓️ 28 July 2021

⏱️ 30 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

How the carbon emissions allowances and carbon offset markets are structured and how to invest in them.

Topics covered include:

How much greater are the levels of carbon dioxide in the atmosphere and how much have average temperatures increased
Why industries and companies are seeking to cut their greenhouse gas emissions
How cap and trade emissions trading systems work
What are the demand and supply dynamics of tradable emission allowances
What has been the performance of tradeable emission allowances
How ETFs invest in tradable emission allowances
How the voluntary carbon offset market is structured and what are the demand and supply dynamics
Why do companies make voluntary pledges to reduce their carbon footprints
What are the types of carbon offset projects
Why it is more difficult to invest in carbon offset markets and how that is changing

The Money For the Rest of Us podcast is ad-supported, but you can support the show and listen to episodes ad-free by becoming a subscriber. Learn about subscribing here.

Thanks to Policygenius and Mint Mobile for sponsoring the episode.

For more information on this episode click here.

Show Notes

Vital Signs: Carbon Dioxide—Nasa

Global Energy Perspective 2021—McKinsey & Company

Climate Change: Global Temperature by Rebecca Lindsey and LuAnn Dahlman—NOAA

2030 Climate Target Plan—European Commission

FAQs Carbon Markets & Indices—Intercontinental Exchange, Inc.

Carbon trading: the ‘one-way’ bet for hedge funds by David Sheppard—Financial Times

KRBN KraneShares Global Carbon ETF—Krane Shares

The Regional Greenhouse Gas Initiative, Inc.

Corporate Carbon Reduction Pledges: An Effective Tool to Mitigate Climate Change? by Stephen Comello, Julia Reichelstein, and Stefan Reichelstein

Carbon offset prices set to increase tenfold by 2030 by Michael Holder—GreenBiz

Carbon offsetting is essential to tackling climate change—The Economist

Cheap cheats—The Economist

Future Demand, Supply and Prices for Voluntary Carbon Credits – Keeping the Balance—Trove Research

Carbon offsets gird for lift-off as big money gets close to nature by Susanna Twidale and Shadia Nasralla—Reuters

CBL Global Emissions Offset Futures – Constract Specs—CME Group

CBL Nature-Based Global Emissions Offset (N-GEO) and CBL Global Emissions Offset (GEO) Futures ‒ Frequently Asked Questions—CME Group

CME Announces Global Emissions Offset Futures by Filipe Wallin Albuquerque—Nordic Sustainable Investment Platform

Related Episodes

251: Impact Investing and Intentionality

262: Better Not Bigger, Circular Not Linear – How the Global Economy Is Changing

340: Climate Change, ESG, and What Should Investors Do?

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to Money for the Rest of Us. This is a personal financial on money, how it works,
0:06.1	how to invest it, and how to live without worrying about it. I'm your host David Stein
0:11.7	today's episode 351. It's titled How to Profit From Carbon Investing While Helping to
0:19.2	Combat Climate Change. I've had a number of questions recently from
0:25.1	plus members on investing in carbon and carbon offsets, including a new exchange-traded fund,
0:33.0	the Crane Shares Global Carbon ETF, ticker is KRBN. It launched at the beginning of 2021 and has
0:42.7	gained 44% year to date. Carbon investing is the kind of juicy topic I like on my podcast,
0:51.7	because I know so little about it. It's a new asset type for me. And as a result, I can apply
0:59.0	the investing framework I taught in my book Money for the Rest of Us 10 Questions to Master Successful
1:04.9	Investing. The first question is what is it to be able to explain to a friend or family member
1:11.3	in as simple terms as possible the key aspects of that particular investment? How does it work?
1:18.3	What are you actually investing in? What's the expected returner upside and the risk of the
1:23.1	downside? Who's on the other side of the trade? Who is creating that marketplace and selling that
1:29.0	investment? And what does it take to be successful? What has to happen? I consider you,
1:34.6	my listeners, friends, and so I've learned as much as I could in several days of preparation
1:40.4	on carbon investing, and I want to share with you, and then you can decide whether this is a
1:45.2	worthy investment or not. First in background, when we're talking about carbon, we're really
1:50.6	referring to carbon dioxide and other greenhouse gas emissions. These are heat trapping gases that
1:57.8	have accumulated in an atmosphere and lead to global warming. NASA estimates that over the past 171
2:06.5	years, human activities have raised atmospheric concentration of CO2 carbon dioxide by 48 percent
2:14.6	above pre-industrial levels found in 1850. The latest measurements are CO2 is 420 parts per million
2:24.5	compared to 378 parts per million back in 2005, and that's from the Manaloa Observatory in Hawaii.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from J. David Stein, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of J. David Stein and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.