Carbon Cap-and-Trade: We See a Compelling Opportunity
By Nic Johnson, Former Head of Commodities at PIMCO and Member of the JPMCC’s Advisory Council; and Klaus Thuerbach, Co-Chief Investment Officer at Klima Capital Advisors
This article discusses potential opportunities in California’s cap-and-trade carbon emissions market. It discusses how cap-and-trade works, California’s Carbon Allowances (CCAs), as well as Environmental, Social and Governance (ESG) considerations of CCA investing. The article also provides two valuation methods and an outlook for the California carbon allowance market.
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