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Emission allowances: Difference between revisions
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{{a|commodities|}} | {{a|commodities| | ||
[[File:Hot France.jpg|450px|thumb|center|Bordeaux vintage of '22 not looking so good.]] | |||
}}{{d|Emission allowances|/ɪˈmɪʃən əˈlaʊənsɪz/|n|}} | |||
An opportunity for regulatory arbitrage, created out of thin, hot air.<ref>Boom boom.</ref> Notwithstanding their close connection with the commodities markets, emission allowances are not commodities, but rather a sort of play on global energy policy. In an odd way they resemble [[crypto]], in that they are fully dependent on a collective belief (amongst the world’s governments) that climate change can, and indeed needs to, be managed by imposing financial incentives on the generation (or consumption) of carbon dioxide. [[Emission allowance]]s themselves formally resemble financial instruments, though their custody and legal form are rather unique, and lawyers will get exercised about how one effectively takes security over them, | |||
===The relationship with european regulation. It’s complicated.=== | ===The relationship with european regulation. It’s complicated.=== | ||
{{Commodity regulation}} | {{Commodity regulation}} | ||