04/30/2007

Is that Carbon Credit or Debit?

Hello:

Companies (and individuals) can attempt to go "carbon neutral" by buying carbon credits. These carbon credits theoretically offset their contribution to global warming by building wind turbines and solar panels, by planting trees, and/or by reducing carbon dioxide emissions from manufacturing plants, etc. Participation in this "carbon gold rush" can range widely in price.

Just like the California Gold Rush in the late 1800's, there is a great deal of confusion and very little regulation associated with this activity. Last week, the Financial News Times cited examples of fraud, mislabeling, and oversubscription associated with carbon offsetting opportunities.

Until more is documented and regulated about carbon offsetting, we believe a large amount of due diligence is very important, so that a "Carbon Credit" does not become a possible "Carbon Debit" to the environment.

Frustrated by the performance of your 401(k) or 403(b) account? Perhaps your firm allows a "partial lift-out" that would allow you to roll a portion of your 401(k) into an IRA account. Contact us for more information.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager