GOLD IN THEM THAR CREDITS. Last week the investment bank Morgan Stanley announced it was investing almost $3 billion in emissions credits made possible by the much-vilified Kyoto protocol. The announcement happened to coincide with the release of the World Bank's annual "State of the Carbon Market" report, at Carbon Expo Asia, trumpeting the news that the carbon market grew from nearly $11 billion in 2005 to almost $22 billion during the first three quarters of 2006. The Stern report flagged by Kevin Drum, which contains dire warnings about the economic consequences of global warming, is making Morgan Stanley's investment look prescient indeed. News that many European countries won't be able to meet their Kyoto targets means there is ample opportunity to make a killing while doing good for the environment. Businesses are more likely to heed the clarion call of the almighty dollar than earnest newspaper editorials. As for the Bush administration, that's another story.
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Blake Hounshell
