Carbon Trading Market Could Be Worth 2.2 Trillion Dollars By 2020

Despite hesitance to adopt carbon trading by countries around the world, experts believe that the acceptance of carbon trading markets is inevitable. China has been reluctant, but as they face an energy crisis, carbon trading markets are emerging as one of the best solutions to curbing their overuse of predominantly coal energy. Japanese and South Korean companies are resisting government plans to set up emission markets worth an estimated $212 billion by 2020, and the Federation of Korean Industries feels that the adoption of emissions trading would put them at a disadvantage unless China and Japan are also on board.

Concerns about competition and cost prevented plans from taking hold in the US and Australia. Outside of Europe carbon markets just haven’t stuck yet. The European Union Emissions Market was valued at $104 billion in 2010 which accounted for 81% of the global total. If the U.S., Japan, and a few other key countries adopt programs similar to the Cap-and-trade program in Europe, by 2020, the global carbon market could reach $2.2 trillion.

Asian Green Technology Holdings believes that both worldwide and domestic emissions markets will be established and grow over the course of the next 10 years, and that the companies that enable profiting from this market will be huge winners during this time. As a Fund that invests directly in green technology throughout Asia, Asian Green Technology Holdings is in the process of identifying and making financing deals with a handful of companies that will help make carbon trading a reality. Energy efficiency, alternative energy, carbon scrubbing, and carbon consumption technologies are a few of the sectors that AGT is looking into.

“It is our belief that given the right technologies companies will get on board. People are hesitant to change their ways, but we are working with companies now that can retrofit factories for energy efficiency, consume emissions to produce bio-fuel, provide renewable energy, and help existing carbon emitters reduce their footprints in a way that will be profitable given proposed emissions markets.” – (Hank Mueller, Asian Green Technology Holdings Partner)

It is Asian Green Technology Holdings position that much of the resistance to emissions markets is due to lack of knowledge. There are companies out there with technologies that are cost effective to implement, and that will significantly improve the bottom line of companies that currently resist carbon markets. As carbon trading becomes more prevalent, CEOs will turn to them for answers and these companies will become hugely profitable. According to analyst Young-Jae Paeng, Asian Green Technology Holdings and their investors are in a great position to benefit from the development of this market. “We are currently investing in a variety of companies around Asia that have some connection to the development of green technologies both established and emerging. I am very excited about our carbon market related investments and see a tremendous upside to many of the companies that we are currently looking at. With such a young market there is a great opportunity to get in on the ground floor and return enormous profits to our investors.”

Source: "PRLog"