Collateralised emissions obligations: Difference between revisions

{{a|myth|{{fwmd|Emissions allowance|}}}}[[Collateralised emissions obligations]], (also known as a “[[CEmO]]” were an apocryphal structured product type consisting of a tranched, securitised, leveraged exposure to carbon credits<ref>In the heady days of 2007 the [[JC]] even had this idea, ran down to the commodities trading floor to share what he thought was a tremendous joke with the structured products team. The lead structurer shook his head morosely and said, “Won’t work. We have tried and we can’t get the accounting treatment we need.”</ref> that did not in fact exist but, had it existed, surely would have precipitated a [[global financial crisis]], as [[Carbon trading|carbon traders]], hopped-up on absurd amounts of [[synthetic alpha]] blew up not just the financial markets but the entire planetary ecosystem with their leveraged bets on the squirrely commitments of G20 nations to act on climate change.