Carbon Footprints

A Carbon Footprint is a measure of the impact human activities have on the environment in terms of the amount of green house gases produced, measured in units of carbon dioxide. Travel less and travel more carbon footprint friendly. Car share to work, or for the kids school run Use the bus or a train rather than your car When on holiday - hire a bicycle to explore locally rather than a car When staying in a hotel turn the lights and air-conditioning off when you leave your hotel room Ask for your room towels to be washed every other day, rather than every day

Business Side of Carbon—a “Green Commodity”
The California “governator” leads the way by signing the Global Warming Solutions act on September 27, 2006. The act requires California’s industries to cut greenhouse pollutants such as carbon dioxide 25 percent, to 1990s levels, by 2020. Five states – New Jersey, Minnesota, Washington, Oregon and Hawaii – have passed similar legislation this year¹. The increased regulations and global awareness has opened the door to carbon capitalism and financing the quest for clean energy.

“Renewable Energy is the next big growth cycle” Vinod Khosla, founder of Menlo Park, California-based Khosla Ventures.

Kyoto Fuels Carbon Trading

World Capital of Carbon Finance—London
Europe’s carbon trading has exploded after signing the Kyoto Protocol. The European Union created a single market for CO2 rights on January 1, 2005. The U.S has not signed the Kyoto Protocol and as a result has fallen behind the carbon market.

Carbon Trading—Europe

• Grew threefold in 2006, to 30 billion³
• $12 billion invested into funds devoted to pollutants²

Coming Soon—US
In 2012, the electronic cap-and-trade market is set to open. This will permit buying and selling of carbon emissions credits like a commodity. Companies that emit carbon at a level below the cap will be able to sell emission credits to firms that want to emit more than the cap. The higher-emitting companies can use credits to cut emissions at a slower pace and absorb the costs of changing their operations over a longer period. The U.S. carbon market may some day dwarf Europe’s.

¹Pumping Green, Bloomberg December 2007
²Cashing In on Pollution, Bloomberg December 2007
³World Bank