Not too long ago I wrote a research paper on trading carbon credits. I have uploaded it to my blog. President Obama has been talking about the "cap and trade program" lately and if this is serious, these carbon contracts traded on the CCX could take off. They have been quite stable since I wrote this research paper in October-November, but that doesn't mean they'll stay stable. You may find it helpful to keep an eye on the carbon credit contract prices, which trade daily on the Chicago Climate Exchange, because I think the contract prices are a great leading economic indicator. When the prices for these contracts start to rise, it could be an indication that we are emerging out of this recession. If you'd like to familiarize yourself with The Chicago Climate Exchange (NYSEARCA:CCX) which is a trading market for carbon credits, or just more about carbon emission offsets, and the trading instruments associated with them (these are purchased by companies when increasing production, this is because they'll emit more when producing more), then you may find my research paper useful.
Chicago Climate Exchange operates under Climate Exchange PLC. (CLE) They are currently listed on the LON exchange with no major talks of bringing an ADR to the U.S. If they happen to bring an ADR to the U.S. It may be worth investing in, as this administration is pushing for a these carbon credits to be a major source of revenue.
To Download the PDF file of My Chicago Climate and Carbon Emissions Research Paper CLICK HERE
Disclosure: No positions