Enterprising Investor Forum

One of the mega trends that all investors should be looking at is CO2 reduction.  How this will develop and how to profit from this is not a very easy call as this is a very complex issue and moreover, one which is highly impacted by legislation and enormous power/interest struggles.

One company we recently came across could be an interesting way to gain some exposure to this and despite not having analyzed it in detail we still wanted to share this with you.

Climate Exchange (mainly listed in Europe but also in the US CXCHF.PX) owns the European Climate Exchange which accounts for roughly 80% of exchange-traded volumes of CO2 in Europe and also owns the Chicago Climate Exchange, which is the only CO2 emissions trading platform in the US.

We are sure that there are other exchanges that will try to challenge them and enter this market but they will be playing catch-up. Goldman Sachs has been behind this project and the own 10% of Climate Exchange PLC… and we all know that Goldman usually makes winning bets.

We will continue to keep an eye on this sector and hopefully bring you some further updates in the near future.

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