March 12, 2010
Wall Street was supposed to become the capital of a global carbon trading market worth a trillion dollars a year but now many who thought green trading desks would be the next big thing are fearing the pink slip.
- A d v e r t i s e m e n t
US banks had looked forward to a huge “cap-and-trade market” a system where companies would buy and sell the right to emit gases blamed for warming the planet. Many hired carbon traders, picked up assets, and trained members of energy desks to deal in emissions markets.
But prospects for a broad US carbon market have dimmed. US Senator Lindsey Graham, a Republican working on a compromise climate bill, declared economy-wide cap-and-trade “dead” this month.
At least one bank with carbon trade assets has already been hit. EcoSecurities, a clean energy project developer and carbon trader, bought by JP Morgan Chase last year has closed its New York-based US office leading to a loss of up to 20 jobs.