The conversion from fossil fuel burners to plasma torches is inevitable and will soon be confirmed by signed contracts.
It's inevitable and below
is just another of many different ways that will force any industries to activate themselves to make the switch to greener technologies as carbon credits become an asset that will grow in value on their balance sheet, for the first movers.
And vaulting carbon credits only ups the value of those remaining in the market. That's just another way of creating an incentive to move greener technologies, as it would create "scarcity".
Nonprofit Seeks to Trap Carbon in the Financial Markets - WSJ Climate Vault buys up permits to pollute from the cap-and-trade market and then locks them away Prof. Michael Greenstone’s plan takes advantage of the current cap-and-trade system around carbon emissions. It creates a secondary marketplace that allows organizations to offset their carbon emissions with pollution permits. The hope is that this would effectively reduce emissions and redirect capital to environmentally focused startups. Without these carbon credits in 11 states, TELSA has admitted that it would not have been profitable in its last quarter. TESLA received these credits from fossil fuel car manufacturers. This is one of the main reasons why car manufacturers decided to make a full move in the EV market and have already announced that they would end engine cars by 2035.
May 2021 -
Tesla's carbon credit windfall to shrink as rival car-makers clean up their act Emissions credits, known as “regulatory credits”, have become big business for Tesla as regulatory measures to limit car emissions in Europe and in some US states boost demand for credits. Last quarter alone Tesla sold more than $US500 million worth of credits, meaning they accounted for more than 5% of total revenue of $US9 billion. In recent months, it has made the difference between a net profit and a net loss for the company.
While the hit may not be great news for TESLA shareholders, more broadly it is a positive sign the newly-formed European auto maker, a merger between Fiat Chrysler and the French-based PSA Group, is edging towards lower wmissions. It also suggests the EU's efforts to push car manufacturers towards low-emission vehicules is working.