LONDON--(BUSINESS WIRE)--Morgan Stanley (NYSE:
MS -
News) announced today
that it plans to invest in approximately $3 billion of
carbon/emissions credits, projects and other initiatives related to
greenhouse gas (GHG) emissions reduction over the next five years.
The majority of this investment will represent increased
commitments to purchase carbon credits from projects as the Firm's
Commodities Trading Department expands its existing Carbon and
Emissions platform. The remainder will constitute investments in
projects and initiatives related to emissions reduction, such as
those certified under the Clean Development Mechanism (CDM) and
Joint Implementation (JI) initiatives. These projects allow
developed countries to transfer and fund emissions-reducing
technology in other signatory nations. The United Nations oversees
the project registration and approval process.
"We strongly support the use of market-based solutions to meet
environmental policies and objectives," said Simon Greenshields,
Managing Director and Global Head of Power, associated Power Fuels
and Carbon/Emissions Trading and Structuring at Morgan Stanley.
CDM projects produce Certified Emissions Reduction credits that
may be bought and surrendered against reduction obligations. JI
Projects create Emission Reduction Units that in the future will
similarly be used. One hundred and sixty-three countries have signed
and ratified the Kyoto Protocol to the United Nations Framework
Convention on Climate Change. The objective of the Framework is the
stabilization of greenhouse gas concentrations in the atmosphere at
a level that would prevent dangerous anthropogenic interference with
the climate system.
Countries that have ratified are committed to reducing their
emissions of carbon dioxide and five other greenhouse gases.
Reduction may be direct or imported through trading with other
countries that make the reduction. Phase one covers the period 2008
to 2012 and many countries are already considering implementation
for phase two. The European Union has already implemented a highly
successful trial phase involving capping and trading of emissions
allowances across the industrial and utility sectors over the period
2005 to 2007 and is currently considering inclusion of the air
transportation sector.
Morgan Stanley is a leading global financial services firm
providing a wide range of investment banking, securities, investment
management, wealth management and credit services. The Firm's
employees serve clients worldwide including corporations,
governments, institutions and individuals from more than 600 offices
in 30 countries. For further information about Morgan Stanley,
please visit http://www.morganstanley.com/.
