CHAPTER 12

New Commodities: Carbon, Battery Metals and Water

Markets created by the energy transition

Opening question

“Can you invest in the price of carbon, and should you?”

In this chapter

How cap-and-trade turns the right to emit into a tradable commodity
The main emissions trading systems in Europe, North America and Asia
What drives the carbon price, with a worked example on a carbon border charge
Lithium, cobalt, nickel, graphite and rare earths: the battery and critical minerals
Why small, opaque markets are hard to trade, with a liquidity example
Water and other experiments in pricing resources
Policy risk: when the government writes the rules, it can rewrite them
How to invest, and what it means for Vietnam

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This chapter is in the full book

Chapter 1 is free to read online. The full text of chapter 12 — with its tables, figures, worked examples and practice lab — is available in the complete edition of Commodity Investing: From Theory to Practice (Volume 2, NXW Investment Library).

Read Chapter 1 free Get the full book — contact@nxw.vn

Sections of this chapter

12.1 Markets created by policy and technology

12.2 How a carbon market works

12.3 The world's carbon markets

12.4 What drives the carbon price

12.5 Battery and critical minerals

12.6 Small, opaque markets

12.7 Water and other new markets

12.8 Policy risk: when governments write the rules

12.9 Vietnam and the new commodities

12.10 How to invest

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