Carbon Credits – Trading on Global Warming

I was reading the Sunday paper this weekend and saw an interesting article on a group of Florida land-owners who are actually getting paid to produce trees.

In this case, the trees won’t be used for paper or for new homes, rather they are being raised for air.

Specifically, the trees are ‘leased’ by large carbon producers (for example energy companies) as a way for them to comply with The Kyoto Protocol, which allows for Carbon Credit Trading.

In essence, the large producers can offset their total Greenhouse Gas emissions by either paying a tax, or, as this article about Florida Landowners demonstrated, by paying for large tracts of carbon-scrubbing trees.

My reaction at first was (I wonder if I should be buying lots of cheap land with trees).

Obviously, the supply for clean air is diminishing and the demand is growing exponentially.

Like everything, there is a market for these credits and in fact, the going price has grown quite a bit over the last few months, from just under $2 in January 2008, to over $7.50 this May.

Thanks, Global Warming.
Sounds like a sure thing…. betting that our atmosphere is going to get more and more full of CO2, and that more and more trees are going to be cut down, seems like a sure thing.