The innovative voluntary carbon markets with Rajiv Louis

According to Rajiv, it’s still too early to tell because the market is still in its infancy, particularly on the carbon front. The reason you’re not seeing a lot of innovation is that the voluntary carbon market is still too small for major financial intermediaries to pay attention to. It’s universally expected, but it hasn’t arrived yet. Major trading houses like Trafigura and Glencore have already established carbon trading desks, and Goldman Sachs and others are claiming to do so. For several years, major fossil fuel companies like Shell and BP have had trading desks – perhaps the most telling sign of all that a carbon tax on emitters is here to stay and far too low at current levels. As investment banks set up shop for carbon trading, innovation in the form of futures, options, and standard trading contracts will undoubtedly follow.