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An Introduction to Carbon Markets, Carbon Credits and Environmental Attributes

Summary

Rapidly evolving carbon markets, global and local, present opportunities and challenges for the commodity and value-added/direct-to-market farming enterprises. On one hand, effective management of a commodity’s carbon footprint enhances the value of that commodity without altering its physical characteristics. On the other hand, should carbon management practices and regulation meet the expectations of investors, executives and customers, carbon offsets resulting from farming activities may soon become tradable commodities all unto themselves, assuming they gain and retain the trust of the market. One of the keys to market success will the transparency, ease, effectiveness, and liquidity of carbon monetization.