Before going directly into the topic itself, environmental commodities, it is essential to understand what commodities are. Commodities is an anglicism used in the financial world. It refers to commodities standardized for purchase and sale, adopting international trading criteria in organized markets. They are also known as raw materials, since these goods have a low …
The world is trying to meet the 2050 deadline of achieving net-carbon neutrality set by the UN roadmap. Therefore, the carbon credit marketplace offers unrivaled potential for cooperation on a larger scale to tackle climate change. In 2021, worldwide carbon growth rose by 164% and reached an industrial value of $851 billion. The governments and …
The global climate crisis catalyzed the spread of environmental awareness across the world. Some of the efforts made to protect our natural resources have been centered around putting a price on these limited resources. The carbon credit system was developed to reduce greenhouse gas emissions. The success of this system relies on the effectiveness of …
Commodifying natural resources: A review of water-based credits Read More »
In the last few years, environmental commodities have been an effective market solution in the fight against climate change. The most common ones are carbon credits. Every ton of CO2 is provided by projects that involve nature -based solutions, technology-based solutions, carbon removal, avoidance projects among others. The stakeholders who buy these carbon offsets are …
What is an Emission Trading System (ETS)? An Emission Trading System is an instrument based on the “cap and trade” principle, whose premise is to set a limit on GHG emissions that can be emitted by one or a group of economic sectors. Under this mechanism, each year is fixed a maximum amount of GHG …
Mexico’s Emission Trading System (ETS): how does it work? Read More »
Approved in 2020, The European Green Deal is the EU’s response to the Paris Agreement. It is the answer to the ongoing climate crisis. The European Commission unveiled the European Green Deal, a road to become a climate-neutral continent by 2050. European Climate Law also includes the goals of climate neutrality for 2050 and the …
