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What Are Carbon Markets, and Should You Invest in Them?

The appeal of investing in carbon markets has to be weighed against their risks.

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With the costs of climate change becoming more visible, governments and corporations alike have set out ambitious agendas to cut their carbon emissions to zero. Reducing corporate travel, turning to renewable electricity, and moving to more-efficient buildings are all practical steps companies can take to reduce emissions. But given the scale of fossil fuel emissions, this often isn’t enough.

Bobby Blue does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.