Strictly Business: Merrill Lynch Saves a Forest

“This is uncharted territory,” declares Abyd Karmali, the global head of carbon emissions at Merrill Lynch. Karmali is referring to Merrill’s new “carbon farming” initiative. Merrill is paying 9 million dollars to save a forest on the island of Sumatra. Villagers are paid to cease cutting down trees and are trained instead in alternative careers like coffee bean, cocoa or palm oil production. In turn Merrill receives “carbon offset credits” which it can resell at a profit in the carbon exchange market. (see 5 Star, Profits & Purpose) Merrill is betting that the US and the global community will follow the example of Japan and the European Union. The EU and Japan have officially established greenhouse gas regulations in an effort to take the lead in global climate control. (see Law and Order.) Carbon farming is an investment idea being considered by hedge funds, commercial and investment banks, and pension funds. Making money and making a difference just might be the next wave on Wall Street. So far, Merrill Lynch is taking the lead.