• What is Citizen Journalism?   • Be a Citizen Journalist.   • Tutorial   Sign up Now!   Log In!  
Friday September 03,2010 | Last Updated 11:09 AM
Welcome, Guest
CJ Login Password
Home India World Politics Sports Business Entertainment Development LifeStyle Sci-Tech Youth-Campus Hot on Web Interviews Press Release CJism
The greening of Markets: Role of Financial Markets
Read Comments Post Comments Email this story Print this story
Keywords:
,

Posted On: 10-Mar-2009 06:40:00 PM Font Size: Increase Font Size Decrease Font Size

Climate science tells that the earth is warming due to human activities.  But considerable uncertainty regarding the precise nature and extent of the risks remains. Climate change happens slowly and has a global impact on the physical environment, whereas financial markets react to news in fraction of a second and are almost liberated from specific physical locations.  The low energy intensity of financial sector means that reductions in greenhouse gases (GHGs) emissions would have little impact on physical operations of financial markets and institutions unlike for instance their effect on electricity production and transport. Nevertheless, financial markets potentially play two important roles in the policy response to climate change. They foster mitigation strategies, that is, the steps taken to reduce GHGs emissions for a given level of economic activity by improving the efficiency of the schemes to price and reduce emissions and the allocation of capital to cleaner technologies and producers. 

 

Furthermore, financial markets can cut the costs of adaptation by reallocating capital to newly productive sectors and regions and hedging weather related risks. In recent years, markets in carbon trading, weather derivatives and catastrophe (CAT) bonds have seen sharp increases in activity and innovations, which bodes well for the future.  Hence recognizing how financial markets will react to climate change initiative and how they can best promote mitigation and adaptation will become crucial to shaping the future policy and minimizing its costs. Failure in reflection of basic understanding of finance can cause major setbacks to climate change policy.

GHGs Emissions:

Burning of fossil fuels is a major source of industrial GHGs emissions, especially for power, cement, steel, textile and fertilizer industries.  The major greenhouse gases (GHGs) emitted by these industries are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydro fluorocarbons (HFCs), Per fluorocarbons (PFCs) and Sulphur hexafluoride (SF6) which will increase the atmosphere’s ability to trap infrared energy and thus affect the climate.

Carbon Credits:

You may also like:-

Warning: mysql_connect() [function.mysql-connect]: Can't connect to local MySQL server through socket '/var/lib/mysql/mysql.sock' (2) in /home/mynews/public_html/database.php on line 23

Warning: Cannot modify header information - headers already sent by (output started at /home/mynews/public_html/database.php:23) in /home/mynews/public_html/database.php on line 28
Discussion Board
Read Comments Post Comments Email this story Print this story
No comments posted yet. Be the first one to start discussion.

POST YOUR COMMENT:
Name:
Email:
Website/Blog:
Your Comments:
Enter the text as it is show in blue box:  

 
Note: Please use respectful language to avoid deletion of your comment.
Savvy Wigs and Hair International
India Tour of Sri Lanka 2010
Commonwealth Games 2010 - Special coverage
Citizen Journalism activities Login to Post Articles Login to upload images Login to post blogs Login to upload audio Login to upload videos
Today's Top News
Our Network mynews.in merikhabar.com mediamughals.com citysamachar.com
Home | India | World | Politics | Sports | Business | Entertainment | Development | LifeStyle | Sci-Tech | Youth-Campus | Hot on Web | Interviews | Press Release | Citizen Journalism
About Us | Contact Us | Feedback | Terms & Conditions | Disclaimer | FAQ | Our Team | Advertise With Us | Webmaster | Widget | Sitemap
Tutorial | Report a Problem | Video | Images | Blog | RSS | Sign Up | Forget Password? | What is Citizen Journalism? | Be a Citizen Journalist.
Copyright www.mynews.in All rights reserved (Except the user generated contents). For more read Disclaimer
.
Read Comments Post Comments Email this story Print this story
  Share  Share Share on Twitter Bookmark and Share