In a development little-noticed in the U.S. media, JP Morgan Chase has placed a bet in the coming carbon trading market by making an offer for European carbon-trading firm EcoSecurities Group plc. The management of EcoSecurities Group yesterday announced that it was backing JP Morgan’s bid to be acquired.
EcoSecurities provides a range of consulting services, including emissions abatement and project management in the field of carbon offsets. JPMC’s bid of 129 million pounds (roughly $200 million U.S.) represents a 17% premium over the price offered by a competing bidder. Shares in EcoSecurities have risen roughly 35% since July.
Carbon trading in the U.S. currently exists only on a voluntary basis and carbon offset projects in the U.S. are not eligible for offset trading in the European offset market. JPMC’s investment represents, to at least some degree, a bet by that firm that carbon trading in some form will one day reach the U.S.