A reintroduction to Carbon Risk
The why, what and who you really need to know
The past year has been a period of rapid growth for Carbon Risk. Carbon Risk is the only newsletter dedicated to carbon markets - helping investors navigate 'The Currency of Decarbonisation'!
My first post (see Investors have a new way to help the environment) was published on 16th November 2021 to around 20 subscribers. Ten months later, and over 100 articles later, the total number of subscribers is about to breach the 1,200 level. Many of you will have found Carbon Risk after being recommended by my good friends at Doomberg, Energy Flux, and Commodity Context.
Before the summer I promised that one of my next posts would be to reintroduce Carbon Risk to my readers, both old and new. I felt that I needed to tell you a little bit more about why Carbon Risk is important to me, the value I hope to impart on my readers, and why I think you should consider joining me for the ride.
Who is Peter Sainsbury?
My name is Peter Sainsbury and I’m a full-time Substack writer.
Across two decades I have spent most of my career working in commodity and environmental markets. Before launching Carbon Risk in November 2021 I was chief economist at WRAP, the global environmental NGO .
My role was to help governments and other clients understand the market dynamics in secondary commodity markets, work on the economics underpinning various resource policies and tradeable environmental markets, and deliver the economic insights necessary for other parts of WRAP to maximise their impact.1
I am also the author of four books that cover topics as diverse as commodity markets, and the perils of forecasting, betting on motor racing and being a smarter media consumer. If you’d like to check them out they are available in Kindle, paperback and audio versions on Amazon.
Writing is one of my passions, especially when I can focus on markets and economics. The process of writing and editing helps to clarify my thinking. That process has been helpful to me in the past, and I want to share that thinking with my subscribers.
Why subscribe to Carbon Risk?
As the impact of climate change becomes more acute the call to do something about it are likely to grow ever louder. One of the most effective ways that governments and businesses can incentivise decarbonisation is by putting a price on carbon. I call it ‘The Currency of Decarbonisation’.
Governments are gradually following Europe’s lead and launching their own carbon trading schemes. As of 2022, around one-quarter of global emissions are subject to a carbon price. Meanwhile, businesses looking to meet net-zero commitments are turning to the non-compliance carbon market to remove carbon from the atmosphere. Carbon markets are likely to continue to grow, both in scope and value and begin to rival the global energy market.
As investors become educated in the opportunities available attention will inevitably turn to how we use that edge as other carbon markets develop. Carbon represents an asset market in its own right, and as it’s price increases it will begin to affect a broader part of the economy. This includes commodities, industries and economies - some negatively, but some will benefit too.
I believe that market based approaches including carbon trading are vitally important in driving better outcomes for the environment, the economy, and society at large.
Leveraging my experience in environmental markets, working with both public and private sectors, and my background in commodity markets I am able to deliver a unique, non-obvious perspective into what is going on in carbon markets.
I’m not beholden to the conventional mental models of how carbon market analysis should be done. By taking a different approach to carbon markets I am able to consistently deliver value to Carbon Market subscribers.
Who subscribes to Carbon Risk?
Subscribers to Carbon Risk include hedge funds, investment banks, family offices, and individual private investors. Carbon Risk helps these subscribers gain an alternative perspective on the complex, ever evolving carbon markets.
Physical buyers of carbon allowances and voluntary carbon credits also subscribe to Carbon Risk. For many carbon is something to think about once a year when it comes to meeting compliance demands, while for others its an integral part of their everyday work. Carbon Risk helps both of these subscribers gain an edge in meeting their procurement and investment needs.
Several financial media organisations also subscribe to Carbon Risk. Carbon Risk helps these subscribers understand what is driving developments in carbon markets. If you work for a media company and are interested in hearing my perspective on a recent development in the carbon market then please get in touch.
What do you get?
Free tier: All free subscribers get full access to at least one article each fortnight. In addition, free subscribers see a preview of the articles sent to paid tier subscribers.
Paid tier: If you decide to become a fully paid-up member for £100 per year, you will receive around 2-3 articles per week. Being a paid member enables you to comment on articles, ask questions and suggest areas that you would like to hear more about. The articles usually arrive in your inbox at 12pm UK time. Here are a few examples of the articles I have published.
Carbon is an emerging asset class, but what is it? (27th January 2022)
The great sulphur dioxide allowance bull market: What lessons can we learn from the first cap-and-trade system? (31st January 2022)
The Day After: Reflections on the carbon market liquidation (2nd March 2022)
The UK carbon market looks like a smarter 'risk-adjusted' bet for investors (27th April 2022)
Which industries benefit from a high carbon price? (3rd May 2022)
'Greenflationary' expectations (10th May 2022)
Whatever it takes: Why forward guidance in the EU carbon market is here, and is set to stay (19th May 2022)
Group subscriptions to Carbon Risk are also available. Get a discount of 20% if you purchase four or more subscriptions as a group. Click the button below to set up your group subscription.
What else can Carbon Risk offer?
If you like Carbon Risk then you might be interested in me writing a carbon market focused article or related content for your company. I have written for a number of organisations, delivering both by-lined and white label content.
If you are interested in finding out about how I can deliver non-obvious thought leadership writing to your audience please email sainsburypeter@hotmail.com.
Where else can you find me?
You can follow Carbon Risk on Twitter @CarbonRisk_ and LinkedIn @petersainsbury
You can check out more on what I did before that on my LinkedIn profile.