Carbon Trading - CFI

Is there n e one on this board that has any experience in this market? The whole thing at CCX is fairly new and i was trying to understand the underlyings of the trade. I got as far as Exchange Allowances and Exchange Offsets, as well as GHG reductions. From my understanding, in order to profit from the CFI contract price increase, Member Companies should underperform on their committed target levels and fulfill their commitment by purchasing CFI. Still not sure if contracts traded are futures or forwards, but i know they are cash settled. Any feedback is welcome.

Does anyone think global warming is a socialist plot to redistribute wealth? yup

Carbon is traded as forwards or futures or spot, but CCX and ECX do mostly futures. There are also many flavors of carbon offsets. Companies with emission reductions commitments won’t profit from price increases by underperforming their target commitments. If they underperform, they will have to purchase more expensive credits. If they purchase futures, it is true that they can avoid an increase by essentially locking in today’s price, but that isn’t really profiting so much as losing less. A company can profit from rising carbon prices by outperforming its target commitments and selling any excess allowances in the market. There might be a futures play to try to take advantage of a higher price for credits down the line, but I’d have to think through how to do that. It’s late/early right now and even though I can’t sleep, my brain is not fully firing.

128nigel Wrote: ------------------------------------------------------- > Does anyone think global warming is a socialist > plot to redistribute wealth? > > > > > > yup For my hats, can I just go with the generic brands, or do I need to use Reynolds Wrap?

Anthropogenic global warming hystery is a scheme to redistribute wealth. End of story. the science behind this socialist movement is being debunked slowly but surely. Within 5 years the science will be completely debunked…although i’m afraid that it might be too late. it might become a part of the economy…and hard to remove because of the redistribution agenda. The science is completely ridiculous. There will be no nobel prizes awarded on the science. definitely not. only some stupid “peace prize”. It is a FACT that the earth has been both warmer and colder than it is now…by large margins!!! Everyone knows this. The Sun has the biggest effect on the earth’s temperature. logically obvious. the sun itself goes through cycles. THE SKY IS FALLING, THE SKY IS FALLING!!! CO2 is in an equilibrium between the atmosphere, ocean, plant life, soil. To permanently increase the amount of CO2 in the atmosphere one unit…requires far more than one unit of CO2…because a lot is absorbed by the ocean. Banks support carbon trading because they get commissions. they favor anything in which they get commissions…doesn’t matter what it is.