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Antonio Otero

Lawyer and entrepreneur, Law Firm

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SUSTAINABILITY STOCK EXCHANGE - A new market for the billion worth market of equilibrium

Due to technological and methodological advances, nowadays it is
perfectly feasible to attribute financial value to sustainability, creating
indexes that reflect it and which can be negotiated in a physical or virtual
environment such as a Stock Exchange.
Creating a sustainability index with financial value would allow us to have
a market for “equilibrium”, where proactive efforts would be compensated
by those negligent or indifferent, as occurs with carbon credits, a market in
which the responsible ones are credited and paid at the expenses of the
irresponsible ones.
This way, from a collective standpoint, in order to value equilibrium, the
price of irresponsibility shall be added to the cost of the practice, product
or service delivered and, at the same time, those who adopt clean
mechanisms shall be compensated at the irresponsible ones’ expenses.
Therefore, attributing financial value to the sustainability indexes and
inducing its negotiation in the market would mean giving solid value and
compensation to the most healthy and advanced entrepreneurial acts,
translated into credit or incentive advantages.

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    Aug 24 2011: eliminating externalities from the stock market seems like a great start to create some sane financial policies.
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    Aug 22 2011: WOW... that is a REALLY good idea...

    The only problem is that it is pretty much a legal war on... car /oil / and power companies.

    It would cost a lot of jobs & people hate that right now.

    Here in the US, I think companies get certain benefits for going green, but we don't penalize anyone. I'm not sure the government here has the power to do that unless a law is broken.
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      Aug 22 2011: We can´t avoid the future and we must start something new, more effective than the carbon credits exchange. And we are already having an economical war anyway. The ideia is turning this economical war into a sustainable and profitable war, as we work on the enforcement of new practices.
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        Aug 23 2011: Yes, I would very much like to see more green architecture such as solar panels... but before any company will be willing to paved the way, the energy has to become cheaper, more available, and more convenient than fossil fuels... but mainly cheaper.

        I just doubt the ability of such a bill to pass in the US... but it probably could pass in places that have bigger governments... like China. Only, they probably wouldn't be willing to take drastic measures like that until the very decade before we run out of fuel.

        Dubai, Korea, any country with a big government could help start the world-wide initiative!