Meeting the Carbon Tracking Market
A second initiative that we’ve embarked upon is a market response to climate change. And it's a company that we've now actually founded called C3. C3 basically a couple of vectors that are going on related to energy, related to climate. Look at what's going on the European Union, you look at what's going on in this Administration. I think it is highly, highly likely that we are going to have carbon reporting requirements and carbon tracking requirements. You have this thing called cap and trade and whether it's a carbon tax system or it's cap and trade, one of these things. The probability of one of these things becoming the law in the European Union, in the United States in the next, you don't say, however many years is highly probably. And this will require for example basically the essence of this is we'll cap the carbon emissions of a country or a company at a certain level. Just like you are required today report your income statement, your balance sheet, your change in cash flow, quarterly SEC. You're going to be required to submit your documentation of your carbon footprint being it will be very expensive. Anybody remember the Y2K problem? It was a big deal, it was very expensive. This is like a Y2K problem that never goes away. It is enormously expensive to calculate a report. And then if you want to build a new factory, a new facility, add a new route, build a new product, you're going to have to calculate the carbon footprint of that and mitigate that. So you will have to mitigate that, you will have to have either purchase those carbon credits from somebody else or mitigated them for your own use to have them available. And that's the reality of the future. So if you look at the predictions for the carbon trading market, Pat and I were just at the Chicago Climate Exchange last week. It's about a $3 billion market now going to a $3 trillion market in 2020 as a result of this legislation that's going into effect.
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