Former Wall Street Journal reporter Bill Paul has a very interesting article in the January issue of Stocks, Futures and Options Magazine, http://www.sfomag.com/article.aspx?ID=1286&issueID=c, regarding Washington’s expected plans to cap carbon emissions and require an estimated 1 million or more U.S. businesses to lower their carbon emissions every year by an amount set by the government. Those businesses that fail will be required to offset their emissions by purchasing credits in the open market from companies that succeed in reducing their emission levels below the government-set annual limit, thereby generating tradable credits.  There will be a tremendous amount of money spent by American businesses in the very near future to comply with pending regulations and PR professionals should recognize the opportunity to leverage this commitment and proactively emphasize their clients “greening efforts” to consumers, investors, and potential employees.

Wall Street is also eager to turn the new requirements into an opportunity to generate fees from carbon trading. Paul adds that in Europe, carbon trading is already a $100 billion annual market and when New York, Sydney, and Tokyo are added to the mix during the next couple of years, fees from carbon trading (from both trading credits and developing carbon-reducing projects such as wind farms that generate credits) will create billions in new fees for investment firms.

Paul concludes that investors will now have to strongly consider companies that have implemented effective carbon reduction programs, such as energy efficiency improvements and/or substitution of green power for fossil fuel-sourced power. These companies are an attractive target for investors because of their lower operating costs, earning potential from carbon trading, and environmentally friendly public image.