(1/17) We've been talking a lot about #carbonmarkets — which has felt like a shift for some of our trad #commodities, #metals, #privacy and #tech listeners. We wanted to share how we see #smartermarkets as the thread stringing them together, in this 🧵:
(3/17) Globally, we've had since the 1800s to understand commodity #markets. #CarbonTrading didn't start until 1997 when 180 countries signed the #KyotoProtocol. With it — 4 types of #carboncredits were created: AAU, RMU, ERU and CER.
(4/17) In 2013, the demand for #carbontrading dropped dramatically, when the #EU banned the purchase of CERs and ERUs by participants unless they were from projects in LDCs, or, least developed countries. Have we mentioned how many acronyms go along with this?
(5/17) Then, at #COP21, the #ParisAgreement (reminder: a legally-binding treaty) was signed Dec 12, 2015 and entered into force on Nov 6, 2016.
(6/17) Great, so if you're following, now countries are committed to increasingly ambitious #climateaction plans which, under the agreement, are called Nationally Determined Contributions or (yes, another acronym) NDCs.
(7/17) But, the Paris rulebook wasn't completed until #COP26, 6 years after the #ParisAgreement was first signed. The agreed #Article6 rules (while not perfect) gave countries tools for #environmentalintegrity.
(8/17) What does that mean? It means there was finally a system to avoid double counting and ultimately a clear path to direct private capital into #emissionsreductions.
(9/17) All of this to say that the voluntary carbon markets (VCMs) are quite new to a huge number of participants, unlike #energy and #commodities #markets which have been operating with relatively unchanged infrastructure for some time.
(10/17) And, we're big on information around here. It only made sense to dedicate our time, energy and content into providing educational resources about these new(er) markets to our listeners.
(11/17) If you've heard even a few minutes of a #SmarterMarkets episode — you know we're bullish on the power of markets.
(12/17) But we're also bullish on innovation.
(13/17) To us, "smarter" markets are powered by improved technology to deliver markets that are:
🔴More liquid
🔴More transparent
🔴More secure
With lower transaction costs and fewer barriers to entry.
🔴More liquid
🔴More transparent
🔴More secure
With lower transaction costs and fewer barriers to entry.
(14/17) On top of that, "smarter" markets should empower individuals to improve their own lives and help address global challenges (the #energytransition, #climatechange, just to name a few of the top of our heads...)
(15/17) We knew it couldn't just be us, so we turned our idea into a weekly #podcast to explore how both #markets and #technology can be redesigned and improved to better serve market participants and society as a whole.
(16/17) So what do #carbon #commodities #metals #energy #data and #tech all have in common? They're key sectors that require new ideas in order to actually achieve change for our global economy.
(17/17) What are the answers? We leave that up to the entrepreneurs, icons and executives who join us every week to rant on the inadequacies of our systems and riff on ideas for how to solve them. (/🧵)
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