Commoditization is Essential for the Low Carbon Transition
In a low carbon economy, carbon must be priced and traded. Indeed, the many carbon markets around the world reflect the common conclusion of policy makers that pricing a ton of carbon is essential to bring market forces to bear on marginal emitting activities. While the many active carbon markets demonstrate the utility of pricing carbon as a policy tool, the limitations of existing carbon markets precludes the final, essential steps to commoditization of carbon.
