Carbon Credit – The Next Big Thing in Cleantech?

Recent news in the carbon credit market has prompted me to do a quick blog on happenings in the carbon world. Following solar, ethanol, and wind, carbon is rapidly emerging as the leader of next expansion phase in cleantech. But so far it has been below the radar of most of the US cleantech investors, though capital has been flowing in from Europe at a torrid pace.

Keep in mind, the carbon market (which is an area my firm is actively working in, so watch this space for more details), already reached approximately $10 Billion globally in 2005. See attached file from IETA, the International Emissions Trading Association on the state of the carbon market in 2006.

Rob Day at Cleantech Investing posted today about the recent investment by First Reserve into Blue Source LLC, an aggregator of greenhouse gas emissions credits. The exciting thing about this news is that First Reserve is an old line energy private equity group, making a move into carbon and cleantech.

This follows on the recent California announcement on the new California law on carbon emissions reductions (Washington Post article here).

Also see the recent news from Australia (the US and Australia are the only two major countries who did not sign the Kyoto protocol) on the similar efforts to develop a state led cap and trade emissions trading scheme there.

At this rate, carbon credits and trading will surpass solar, the recent darling of the cleantech sector, in size in 2006, and wind shortly thereafter.

2 replies
  1. Shaker
    Shaker says:

    Little Canadian Public Junior Resource Co. is Going to Clean Up China's Greenhouse Gases in a Huge Way & the Big Guys are missing it. Petromin/Shanxi Energy Inc. Coal Energy Agreement3/26/2007 VANCOUVER, BRITISH COLUMBIA, Mar 26, 2007 (MARKET WIRE via COMTEX News Network) — Petromin Resources Ltd. (the "Company" or "Petromin") (TSX VENTURE: PTR) is pleased to announce it has entered into a ground-breaking agreement with Shanxi Energy Inc. of Taiyuan, Peoples Republic of China. Shanxi Energy Inc., is a designated state owned coal energy development Company (Involving Coal, Coal Chemicals, New and Renewable Energy, and Clean Coal Technology) and is fully established and organized by the Shanxi Province Development and Reform Commission. The Petromin / Shanxi Energy Inc. Coal Energy agreement addresses cooperation in the development of the following projects in Shanxi Province: 1. CO2 Sequestration in deep un-mineable coal seams; 2. Coal heap utilization in power generation; 3. Surface Coal Mine Methane projects; 4. Other environmental energy related projects In the agreement, Petromin will instigate and provide the technical support and requirements of the above projects while Shanxi Energy Inc., through its own networks and control, will identify and locate project sites and entities (of other state coal companies, coal mine owners, coal bureaus etc.) for Petromin. Shanxi Energy Inc. will also initiate and assist Petromin in the government approval and funding process. The partnership agreement has obtained endorsement and full support from the following departments: 1. Shanxi Province's Development and Reform Department 2. Shanxi Province's Environment Department 3. Ministry of Commerce 4. All other related agencies which administer enviro-energy projects in Shanxi Province This agreement enables Petromin to start its first enviro-energy project site selection and assessment in Shanxi Province – at which time more news will be forthcoming. Shanxi Province is one of the strategic areas in China to implement CO2 Sequestration and coal related enviro-energy projects. The agreement also fits within the overall strategy for Petromin to promote CO2 Sequestration in China's Ordos Basin, and will lead to the development of future sites for large scale CO2 Sequestration projects and other clean coal development projects in the region. Working closely with Alberta Research Council on CO2 Geological Sequestration in deep coal mines, Petromin will implement this technology in China to help alleviate the country's immense CO2 emission problem. On Behalf of Petromin Resources Ltd. Kenny W. Chan, Co-Chairman and Chief Executive Officer Contacts: Petromin Resources Ltd. Mike Suk Vice President (604) 682-8831 (604) 682-8683 (FAX) Email: ir@Petromin.ca or Mike.suk@Petromin.ca Website: http://www.petromin.ca SOURCE: Petromin Resources Ltd. mailto:ir@Petromin.ca mailto:Mike.suk@Petromin.ca http://www.petromin.ca Copyright 2007 Market Wire, All rights reserved.

  2. Sid
    Sid says:

    I completely agree with the topic title that Carbon trading is going to be the next big thing all over the world due to support by the government and interest of common man to completely make the carbon footprints vanish and make the world green and pollution free fighting natural causes like global warming and other environment depleting sources.Thanks for such an informative post and the comment by "Shaker".

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