The market for Certified Emission Reductions (CER) has only just emerged. Already, there are very many Carbon Investors who are trading in existing CERs and also investing in "Forward Purchase" of future CERs that will be generated through the implementation of Clean Development Mechanism (CDM) projects.
Most of them are socially conscious individuals and groups who have contributed to the decade long struggle for countries to sign the Kyoto Protocol and accept emission reduction quotas. They have a strong inclination towards rural populations in non-Annex I (i.e. non-polluting, developing) countries and are willing to take the extra effort and risk to enable as much of their capital as possible to go to such CDM projects.
These Carbon Investors can now play a vital role of "putting their money where their mouth is" and giving all of us a credibility that is urgently needed. After all, we have talked about pro-poor and rural development endeavours in our Climate Change circles for a very long time.
Forward Funders
The second type of carbon investors are environmentally conscious individuals, groups, organizations, philanthropists and foundations who are willing to "Forward Fund" risky CDM project activities (e.g. Afforestation/Reforestation Projects) which have a long gestation period and where the carbon markets are as yet unclear as to how to value and trade in A/R CERs.
VER Funders & U.S. Partners
In this category are also those who are willing to settle for Voluntary Emission Reductions (VERs) which are not registered with the Executive Board of the UNFCCC and therefore have no commercial value in the carbon markets.
Notable among them are private-public partnerships in the U.S. who have voluntarily contributed to huge emission reductions, in spite of not being legally obliged to do so under any international protocol. An indicator of this voluntary commitment is the State of Oregon which has, on its own, passed exemplary laws that need be emulated by others.