New World Carbon Research Project Essay

NEW WORLD CARBON
Carbon Market Report – September 2010

Voluntary Offset Prices
(Source Standard Carbon, ClearSky Carbon Solutions, The Carbon Neutral Company, Native Energy)

Last Sale Price
Agricultural Methane Landfill Methane Coal Bed Methane Agricultural Soil Renewable Energy
$ 15.00 $ 15.15 $ 15.15 $ 15.00 $ 14.18

NEW WORLD CARBON
Over the past year, NEW WORLD CARBON has been monitoring the emergence of what many financial institutions are considering to be the fastest growing market in the world: The Carbon Market. The market has been primarily driven by European companies and investors where it has grown from just under $10 Billion in 2005 to over $100 Billion in 2009. While this growth has been dramatic, the market is projected to rise even more dramatically with several large financial institutions such as Barclay’s Capital projecting the market to eventually reach $2 Trillion by 2020. Barclay’s and other leading institutions such as JP Morgan and Goldman Sachs attribute these projections to eventual demand by the United States as the nation looks to soon enact pollution controls in the form of caps on carbon emissions. Other emerging markets such as China and India are also experimenting with ways to reduce their carbon emissions with a Cap and Trade system similar to the one currently experiencing tremendous success in Europe. China has even announced that they will begin Carbon trading as early as 2011. In this research report, NEW WORLD CARBON assesses the Carbon Market’s potential as well as the risks involved with investing in this rapidly growing specialty sector.

Average Offset Price Expected Year End Price Projected Cap & Trade Price

$ 14.89 $ 18.00 $ 60.00

Minimum Expected Return

300 %

History of Carbon Trading
Europe was the world’s first region to warmly embrace the idea of Carbon Trading and currently has the world’s largest Carbon Market, trading upwards of US $100 billion worth of carbon-related trades in 2009,...