Review
“A clear assessment of the carbon market and financial products being developed to help address the threat of climate change.” (Ethical Corporation Magazine, May 2007)
Praise for Carbon Finance “A timely, objective, and informative analysis of the financial opportunities and challenges presented by climate change, including a thorough description of adaptive measures and insurance products for managing risk in a carbon constrained economy.” —James R. Evans, M. …
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This is a good book if you want to have an overall picture on the Carbon markets. The book provides summary of how the carbon markets were formed, why and how. However, do not expect to find any finance related chapters in the book, such as an in depth description of how instruments are structured, or on how to implement carbon instruments in actual projects. However, this book is excellent as an introduction, and is a must read before going on to more complicated text. My only problem with the book was its title, which gave me the impression that the book will be much more concentrated on the “financial” part of carbon trading.
The book is an acknowledgement of how environmental concerns, and specifically global warming, are approaching mainstream. Labatt and White give a sober summary of various types of energy sources, nonrenewable and renewable. With the pros and cons of each.
Aside from these energy sources, they also discuss how to perhaps sequester carbon. That is, remove what is usually carbon dioxide emissions from the environment. One promising idea is to inject it into deep oil and gas fields. In part, this is helped by the fact that it is already being done. Albeit to improve extraction of the oil and gas.
The text also explains how aviation is a huge source of CO2 emissions. Something not originally considered significant, just a few years ago.
The book also goes into ways to do emissions trading. Big problems still exist, including verification of emissions. There is no mention of some pioneering work in the early 90s in Southern California, with the Air Quality Management District, and an exchange called Buenos Aires [sic].
Various trading mechanisms have started up. But nothing yet with a large global scope.