EU firms not making most of carbon markets

This week’s Economist has an interesting article about Europe’s carbon trading markets, which suggests that few firms are taking full advantage of them–partly due to a lack of market know how, it seems.

The root of the problem, says Guy Turner of New Carbon Finance, is that many companies view the ETS as a regulatory burden, rather than a chance to make money. They tend to put environmental experts, rather than financial whizzes, in charge of their participation in the scheme. The former, in turn, tend to concentrate on making sure that their firm has enough allowances, rather than on maximising their value. They are seldom used to trading, and are sometimes uncomfortable with the idea of “profiteering” from a system designed to cut pollution.