Carbon Credits and the Changing Energy Market
In June 2023, Westlark Advisors began focusing on sharing some of our expertise and experience through our website. Our first blog post series dealt with the impact of carbon neutrality on the energy markets.
Potential Changes to Carbon Neutral Policies
The recent United States election provided two different potential outcomes for carbon neutral policies. President-elect Trump has been less supportive of some of the current administration’s climate policies. One major question is whether President-elect Trump will reverse or change some of those prior policies.
Another major outcome from this election was the failure of a cap-and-invest repeal measure in the state of Washington. The system that was implemented in 2023 brought forth volatility in energy pricing and caused uncertainty regarding the law’s future. However, voters kept the current system in place.
These two issues illustrate the very first post we did The Changing Energy Market. This post emphasized that “change is the only constant” in the energy market. New rules by President-elect Trump could usher in more changes while the continued stability of Washington’s plan could pave the way for other states to accept cap-and-invest systems.
Possibilities for the Future
Right now, we are not certain about what decisions the future U.S. President might make. But we are certain of one thing, the West Coast Cap-and-Invest (or Trade) system remains solidly in place. This continues to support a need to understand what carbon neutrality is and what can be done to reach that status.
Many within the LPG industry are searching for alternative fuels, such as renewable propane. However, the carbon credit market was, and is, at historically low prices. This could provide opportunities for fuel distributors to use a very cost-effective method to make their business carbon neutral (How to Purchase Carbon Credits – Part One, Part Two).
Why Should You Use Carbon Credits in Your Business?
Why should a fuel distributor even consider carbon credits in their business? Because incorporating these credits allows you to present your company as carbon neutral and able to adapt to changes in the market, while also acting before a government mandate comes into your state.
As we mentioned in our beginning blog in June 2023 – the only thing that remains constant is change. We want to help our clients to be as prepared as possible for any of the coming changes.
Carbon Credits and the Changing Energy Market
By JD Buss
