7 Unstoppable Carbon Derivative Investments for the Eco-Conscious Portfolio (And How to Avoid Greenwashing)
The transition to a low-carbon economy hinges on effective carbon pricing, with markets bifurcated into Compliance Carbon Markets (CCM) and Voluntary Carbon Markets (VCM). CCMs, driven by government mandates like the EU ETS, offer regulatory stability by classifying allowances as financial instruments, enabling robust secondary trading of derivatives.
Carbon markets transform regulatory and social pressures into tradable commodities, creating opportunities for eco-conscious investors. The EU's explicit classification of EU Allowances as financial instruments underscores the growing maturity of carbon derivatives as an asset class.