Thursday, January 11, 2007

The Hottest Commodity in Asia

Right now the hottest commodity in Asia might not be uranium, coal, water, or soybeans... But this commodity is, according to my sources, expected to double by 2008. What I'm currently researching is the perfect way to play this boom...

A boom that is expected to help reduce the world's overall CO2 emmissions by 5.2-6%

For those of you familiar with the Kyoto Protocol agreement, that is of course the reduction target set by the 35 signee nations, which aim to reach the goal by the year 2012. Along the way, there will be a massive, short-lived market created for the trading of carbon dioxide credits.

As reported in BusinessWeek recently:

** Under the Kyoto treaty, developed countries are required to cut emissions by an average of 6% from 1990 levels by 2012. Each country is permitted to emit a certain number of tons annually of carbon dioxide or its equivalent.

** Governments then issue emission "allowances" to polluters within their borders, and these can be bought and sold by companies worldwide. Through this carbon trading system, big polluters in developed countries can pay companies in developing nations to cut emissions in their stead. Since many factories in developing countries use dirty, inefficient processes, it's often cheaper to clean them up than to replace the more modern equipment used in wealthy nations.

This brand-new commodity market that's being created and poised to double in the next two years is... carbon dioxide.

To read the full article, go here:

Meanwhile, I'm looking into this. If there's a perfect way to play it, I'll let you know. If not, the fact that this whole new commodity market is developing and that it will come to a head over the next six years is interesting food for thought... let's just hope it helps to reduce CO2 by 6%.

Green thoughts,


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