Weather, Energy, and Emissions

[finssite]

Hello,

I'm studying on Weather, Energy, and Emissions markets. Could you please discuss potential career tracks working in all of them together?

I'm also studying Options, Futures, and Other Derivatives by Hull. I've thought to prepare myself in a focused way within the next six months to model and program a practical application. I do realize that these three areas require a breadth of financial and technical skills. Could you suggest any worthwhile project that could be my basis to study in these areas?

Thank You,
Shakti

 

[Bastian Gross]

Hallo Shakti,

Your are interested in Evolution Markets, then this site should be a good general view.

But first I would recommend that you to posses some statistical skills and time series analysis methods. Then, if such book is not read by you, read one of this books (depending on prices).
New book by Fusaro: Energy & Emissions Markets: Collision or Convergence
For further paper read this papers:

 

[Christian]

Great question, finnsite and great links, Bastian. I am quite interested in these markets as well. Finnsite, you also might be interested in Sterling Planet

They help institutions and businesses offset carbon emissions. I attended the JPMorganChase Carbon Stewardship workshop with one of their directors last spring.

The voluntary carbon credit market in the USA is still not quite mature and one of the hot topics seems to be how to create an overall infrastructure that people will adhere to. To me, the problem is similar to a government convincing a country that their currency is worth something. There has to be an agreed upon system of rules and exchange that ultimately create a perception of permanence for the market.

 

[finssite]

Hallo Shakti,

Your are interested in Evolution Markets, then this site should be a good general view.

But first I would recommend that you to posses some statistical skills and time series analysis methods. Then, if such book is not read by you, read one of this books (depending on prices).
New book by Fusaro: Energy & Emissions Markets: Collision or Convergence
For further paper read this papers:

Hi Bastian,

Thank You for all this info.

I think a combined expertise in weather, energy and emissions could provide great career opportunities?

Thank You,
Shakti

 

[finssite]

Hello Christian,

I read about the state of voluntary carbon markets http://www.newcarbonfinance.com/dow...ryCarbonMarket.pdf&f=fileName&t=NCF_downloads

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The Driving Force: Customer Motivations

If we are to truly understand the driving forces behind the voluntary market, we need to understand why buyers buy. In order to do this, we asked final buyers and suppliers to rank (from 1-5) a series of purchasing motivations based on their own goals and perceived customer goals. The proposed motivations were:
- Sustainability reporting/internal goals
- Corporate responsibility/environmental ethics
- Public relations/branding
- Sales of carbon-neutral products
- Anticipation of regulation
- "Walking the talk"
- Climate change influences business model (For example, re- insurance agencies)
- Other

From a sellers perspective, the two most prominent reasons for buying carbon offsets
were for general CSR purposes and being seen to "walk the talk." Interestingly, relatively
few respondents saw the main benefit of acquiring carbon offsets through the voluntary
market as a means to achieving future regulatory compliance, which is the reason many
people give for the very existence of the voluntary market. This might indicate that, even in
the face of future regulation, the voluntary carbon market may continue to grow and thrive.
Specifically noted "other" reasons outside of those listed included "director level support"
and "taking the initiative in this field."
---

Thanks a lot for sharing your perspectives and providing inputs.
Shakti

 

[Andy Nguyen]

All the big banks have set up their carbon desk. Here is one from Lehman Brothers Carbon desk. A few people on LB carbon desk are also members of Quantnet.