Top Traders Unplugged OI18: The Carbon Trade, Without the Illusion ft. Mike Azlen
11 snips
Aug 27, 2025 Mike Azlen, the founder of CarbonCap and a leader in carbon-focused hedge funds, joins the discussion to demystify carbon markets. He emphasizes why regulated markets are more effective for real emissions cuts than voluntary offsets. The conversation delves into the intricacies of compliance carbon markets, pricing challenges, and the impact of legislative frameworks. Azlen also highlights innovative investment strategies and how carbon markets can align incentives with tangible climate outcomes, making the case for informed investment in this evolving landscape.
AI Snips
Chapters
Transcript
Episode notes
Carbon Markets Are Currently Fragmented
- Regional carbon prices differ widely today but policymakers intend to link markets over time.
- Pairwise correlations across the five traded markets are near zero, offering strong portfolio diversification benefits.
Voluntary Vs. Compliance Markets: Clear Blue Water
- Voluntary carbon markets suffer regulation gaps, illiquidity, and unlimited supply that can undermine climate outcomes.
- Compliance markets are regulated, large, liquid, transparent, and capped, producing genuine abatement incentives.
Avoid Unregulated Offsets For Now
- Avoid voluntary carbon credits until they operate under proper financial regulation.
- Prioritize regulated compliance permits for genuine climate impact and measurable outcomes.