The risks and opportunities in starting a carbon trading firm within the carbon marketplace

This paper looks at the viability of starting a carbon trading firm in Australia, based on the understanding and nature of carbon trading and its acceptance and implementation in the economy. The main function of the firm is to work as a broker on behalf of organisations or individuals for buying and selling carbon credits. A broad overview of the evolution of the carbon trading market and the mechanics involved in trading the carbon emission units is provided, along with a quick overview of how carbon credits can be priced and an analysis of the Australian Government's Green Paper. The role that government plays in the regulation of the market and the impact of introducing an emission trading scheme on businesses in Australia is the primary reason for reviewing the carbon trading market in this paper. Finally, the potential benefits from starting a carbon trading firm in Australia are reviewed. The analysis of the potential benefits and viability includes a thorough assessment of information regarding the outlook and chances for carbon trading in this country, as well as the risks that are associated with creating and running such a venture.