Assets Analysis » Green Assets?

What are Green Assets?

An introduction to environmental markets Climate Change:
In recent years multiple factors, from environmental degradation to global security, have put pressure on governments and industry to lower greenhouse gas (GHG) emissions that are believed to cause climate change.

Cap and Trade:
One efficient way for policy-makers to lower GHG emissions is to set a cap on those emissions and let industry buy and sell the rights to emit GHGs within this cap. This is called cap and trade.

Environmental Markets:
These events have led to the creation of several markets, all geared toward putting a price on emissions and using that price as an incentive to lower those emissions.

Projects and Green Assets:
The underlying principle is that a decrease in emissions has value. Many activities, or projects, that have realistically lowered emissions are eligible to get credits for that activity, for sale in global carbon markets, with each credit representing one ton of carbon dioxide equivalent.