Why Has Environmental Market Development Been So Slow?

environmental finance markets
Peter Fusaro
publication date: 
Friday, May 15, 2009
UtilliPoint Issue Alert

My last IssueAlert article focused on the framework needed to create the Green Financial Markets. What troubles me today is how slow this process has been, given the urgency of the situation. It can be argued that the public policy process is always slow and riskaverse, but I am actually looking back at 19 years of incremental change at best. I was recently interviewed by the Congressional Research Service regarding which agencies should regulate cap and trade. I argued that it should not fall under FERC jurisdiction because FERC has no experience in environmental financial markets. The following day I was interviewed by the Wall Street Journal on carbon market developments in the United States and abroad. This is their first coverage by the journal of this sector as a commodity.