Why Intercept is a podcast project from Bridge Alternatives that aims to explore new ideas in modern investment alpha. Through conversations with portfolio managers, institutional investors, academics, authors and others, we seek to gain clarity on how and why certain types of alphas exist in an ultra competitive investment landscape.
Katie Sullivan of the International Emissions Trading Association (IETA), sets the stage for a discussion of carbon markets and environmental commodities.
Lenny Hochschild of Environmental Commodity Partners considers carbon trading from the investor’s perspective: What is actually being bought and sold? What are the characteristics of environmental commodity markets? What should an investor expect of these investments?
With about 20% of global carbon emissions under carbon pricing, we are witnessing renewed investment opportunities in the environmental commodity space. While this remains a niche market opportunity, there is good reason to believe that trading and investment opportunities in environmental commodities will continue to grow in the years to come. Why do these disparate markets exist? Who are the actors? What are the similarities and differences with other commodity markets?
Nicolas Girod, Head of Markets at ClearBlue Markets, reviews data on today’s carbon markets and how they came to be.
There was a piece in the Financial Times last week entitled “New crop data providers cash in on US shutdown” (paywall). It detailed how the US government shutdown impacted many areas of businesses from the National Transportation Safety Administration to the USDA. The USDA crop reports were interrupted for an extended period of time, leaving many agricultural traders in the dark on government reported stocks of soybeans, corn, wheat. Third party alternative data providers have stepped in to fill the gap, using their own process of data collection and predictive analysis to produce their own set of balances.
Renewable energy and low carbon-technology are coming at an increasing rate and may have a serious impact on the underlying fundamentals in the capital markets. Jon Creyts, Managing Director of the Rocky Mountain Institute, offers his insights into the ways in which our future will be shaped by these changes and the implications it will have on current business models.
Following Jon’s presentation, a panel of commodity managers discuss the ways in which this technology will change the fundamentals of the energy related capital markets and over what time frame this could take place.
Renewable energy and low carbon-technology are coming at an increasing rate and may have a serious impact on the underlying fundamentals in the capital markets. This recent article published in the March / April 2018 issue of Foreign Affairs touches on China’s role as a leader in renewable energy and will be a topic of conversation at our upcoming time Summit event in April.