Carbon trading should become as synonymous with everyday trading as gold and foreign exchange. This was the view from brokers on the implications of climate change on carbon markets.
Alexander Pohl, senior project manager at HSBC Insurance Brokers, said, “Carbon should be seen like any other asset. If you mention carbon market but then replace carbon with or gold or tin market, it doesn’t become a strange idea. People just have to get used to the idea. When they do, the market will really develop.”
He believes that a carbon market and insurance are a natural fit “There is enhanced access to capital – enabling more projects to be developed and an increased confidence in credit delivery.”
Reinforcing Pohl’s point, Warren Diogo, climate risk specialist at Marsh, said, “There are opportunities for clients and new products to emerge. Carbon should be seen a new asset class of it own.”
Co-ordinator of the Carbon Disclosure Project, Paul Dickenson said there are currently 290 investors involved in the project with assets of $4 trillion.