Carbon crunch and the climate bubble
Originally submitted by Joe Ravetz
last updated by Rafael Popper
Wild Card's progress: fully-fledged
This Wild Card came from:
European Commission Framework Programme for RTD
The theme/scheme related to this Wild Card:
Theme 6 - Environment (including Climate Change)
The sub-theme that best relates to this Wild Card:
Pressures on environment and climate
Likelihood timeframe and scenario features :
now-2025
Wild Card's description
Who will bail out the climate bubble? Global carbon markets and pricing mechanisms fulfil the aspirations of the global climate community. But they quickly lead to runaway speculation, high-risk carbon derivatives markets, and an inflationary carbon bubble, driven by the perception of easy money in carbon finance. This rapidly undermines any remaining confidence in low carbon technology investment, and increases the vulnerability of the global climate governance system.
