Richard Sandor has been saying for years that markets for clean air and clean water could become the largest commodity markets in the world.
His track record in financial futures is very impressive, and after 12 years’ work on the project he founded the Chicago Climate Exchange, CCX, in 2005.
Now the markets are taking off, beginning with the CO2 emissions markets. Here is a story in Washington Post, Warming Tend is Hatching a Business.
This is not to say that there are not teething troubles. Earlier this year there was a sharp fall in the price of carbon emissions credits in Europe. It seems that the baseline was set at too high a level, and the market crashed.
There are also problems with agricultural and forestry offsets. How do you reliably measure and quantify carbon sequestration?
This article in New York Times is somewhat sceptical.
But Richard Sandor is fond of quoting Schopenhauer: “Every truth passes through three stages before it is recognized: In the first it is ridiculed, in the second it is opposed, in the third it is regarded as self evident.”