Exploring Carbon Retirement Portfolios

Payne Institute Fellow Brad Handler and Morgan Bazilian write a commentary on there are new financial instruments that are being designed and brought into the fight against climate change. One such potential instrument is a Carbon Retirement Portfolio (CRP), a collection of carbon-emitting assets, including oil & gas (O&G) producing wells and coal-fired power plants (coal plants). A CRP would buy these assets with the commitment to retire them more quickly than their business-as-usual case. Thus, CRPs can be a vehicle to accelerate a country or region’s reduction of its greenhouse gas (GHG) emissions.  July 30, 2021.