Citigroup have decided to spend $50bn financing new green energy projects. This money is tied up also in helping clients understand their environmental risks and managing that exposure. Given that much of the US will look at going green in the next ten years many companies will have to account for grren regulations more than in the past.

In the UK ten years ago there was a small scale green trading scheme between a chosen select few. Although the major utilities offered to get involved and even start trading it the market was no well established and the players all came from a sell side and so trading it was difficult. Citigroup may encounter some of the same problems but they can hedge it against EU markets and the developing Kyoto markets. If the republicans lose the next election then it is likely that a green agenda will dominate local US politics.