Richard Sandor is cashing in on carbon “crops.” Mr. Sandor is the CEO of the Chicago Climate Exchange, a firm that is already making big-money deals withÂ major companies to buy and sell paper representing non-carbon.
Companies, like Ford Motors, who ostensibly arenâ€™t emitting as much carbon as they could, sell their â€œcropâ€ of non-carbon to companies who are producing carbon dioxide in excess of whatever artificial limit is deemed to apply to them. Thus, higher carbon-producing firms can be forgiven by paying Ford and other lower carbon producers for their commodity of non-carbon.
Asked why companies would enter into a carbon trading arrangement when there is no legally required carbon cap in the US, Sandor explained that big companies with lower emissions see big profits in the scheme and added, â€œIf youâ€™re not at the negotiating table, youâ€™re on the menu.â€
Naturally, any company that can earn extra profits by selling paper that literally represents nothingness (or, put another way, something that does not exist) would jump at the opportunity. Buy why would anyone buy them? Perception is the key according to Sandor. These are companies that want to be in on the â€œpolitical debateâ€ (rather than eaten, apparently) and put forth an ecological face to the global market.
Richard Sandorâ€™s recent interview on CNBC is a remarkably honest and revealing look inside carbon trading.