Carbon Markets

Carbon as a Commodity.  Sequestered carbon is now a globally traded commodity.  Indeed in the U.S. carbon trading exceeds that of corn and wheat combined. By 2012 carbon is expected to be the world’s largest traded commodity. As a commodity with the ability to provide economic returns to land managers, carbon sequestration can serve as a new catalyst for improved forest management practices such as forest preservation, lengthening fallow periods and reduced impact forestry. Unlike traditional development models based on deferred and diffused benefit streams, the new carbon-market model offers an opportunity to directly link land management and natural resource conservation with specific and immediate market incentives. This market-driven approach will stimulate growth and development of local social and technical infrastructure that is self-sustaining and can be maintained over the long term, with highly valued additional benefits such as enhanced land tenure and environmental quality.

Carbon Financial Markets: a Biobased Economic Opportunity.
In recent years opportunities for participation in carbon credit trading markets have been growing. The Chicago Climate Exchange (CCX) now boasts more than six million trades per month. A recent summary of the State and Trends of the Carbon Market 2008 prepared for the World Bank’s BioCarbon Fund reports a rapid increase in corporate participation in the carbon market. One opportunity lies in prospects for leveraging this growing carbon financial market in the US and Europe to assist poor farmers in developing countries who could participate in tree planting or vegetation regeneration projects and earn revenues that can, in turn, catalyze economic development within their communities, increase rural incomes, enhance land tenure security, and stimulate natural resource conservation.  The patentable approach developed at Michigan State University – Carbon2Markets™ – focuses on the co-development of market value-chains for sequestered carbon and secondary products.  This approach, which includes a specific model for project development and measurement of its carbon, is pivotal to enlisting the managerial skills and lands of tens of millions of farmers around the world in the struggle to slow and abate climate change.

Charismatic Carbon is our term to highlight that we are twinning carbon sequestration with many social and environmental co-benefits. All of our projects attempt to impact communities and livelihoods. Our model is focused on carbon in the context of environment and development.