The Polluted Waters Of Carbon Credits
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If you can get your hands on carbon credits it may be a very sound investment.
Funny enough Carbon Credits have been spoken about for some time with little or nothing seeming to ever happen. This is all about to change however as the European Union emissions trading system (ETS) has set up a gradual declining cap on the amount of carbon emissions each sector is allowed.
Yes we want everything greener and have to change which technology is already doing in most industries already just through normal progression and development. I see it more of an excuse to make money as the market is currently worth in excess of $400 million per year and with the gradual cap declining it is expected to be in the region of $25 Billion within the next 7 or 8 years. That is some gradual increase and a 60 x earner for Governments to get their hands on.
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The way it works is various industries can purchase carbon permits which allows companies to prodece x amount of carbon per tonne. This is in other words is putting a price on pollution. This is a carbon footprint for everyone to adhere to and will impact virtually everything. There are some older carbon credits in existence which are expected to be nullified for this new system.
Next year the ETS is selling off allowances which are expected to become hot commodities. These allowances will be in limited supply and is a bit like buying a quota which if not used could be sold on to someone requiring extra.
Shipping lines are going to be heavily hit which means the transport costs will have to increase unless they change how they operate. This is not coming as a surprise to them as some have already started changing their fleets to LNG (liquefied natural gas) which has created a few problems to overcome. Firstly the gas has a lower density then normal fuels and therefore needs far more storage space. The engines also have to be adapted to hold as much gas as possible at the same time as being efficient. A French company is in the process of developing a membrane tank for storage so it wont be a regular fuel tank like they currently use.
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LNG reduces emissions by as much as 85% if used and burned correctly.
The latest development is to have a hydrogen fuel cell on board that will store power in giant batteries and run 100% green and emission free. I think it is amazing what and how technology moves when there is a threat of monetary penalties.
The one drawback is LNG is highly flammable and has a burning rate 2 x that of gasoline. The other obstacle is methane gas is odorless so detecting a leak is done by electronic senses. Like LNG the Hydrogen Fuel Cell is also highly flammable so there is no getting away from possible dangers on board a vessel.
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Flight travel is also moving at pace trying to find an alternative solution which will most likely be a hybrid plane at first moving over to electric at some point run by batteries.
If we take a look around today things are changing and being developed at a crazy pace. The need for change is being forced on industries as for those that don't will not be in business within the next 10-15 years. The last time we had so much development happening was during the Second World War and we saw what that did changing air flight from propellers to jet engines. Companies have a limited period to adapt or disappear over the coming years.
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STOPPretty soon we may have to “pay” to breath. These cap and trade schemes are silly. Instead, we should reward people who use alternative energy sources with crypto.
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This is all about creating more revenue for the governments out of thin air. I think the penalties will become harsher as they see the money flow in. Rewarding companies is not going to make money and is the exact opposite, but see your point.
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Change is bound to happen now or later but I hope is for the good of the society and not for the purpose to scoop money.
We would like to think that but that is never the case.
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Okay
Okay
If they don't enforce this now I don't see how they are going to suddenly be able to or want to just because there are some credits in play. The biggest offenders are going to do whatever they want anyway. That is just my thinking anyway.
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Not everything that is faced can be changed, but nothing can be changed until it is faced