OI18: The Carbon Trade, Without the Illusion ft. Mike Azlen

OI18: The Carbon Trade, Without the Illusion ft. Mike Azlen

Mike Azlen joins Moritz Seibert for a frank look at carbon markets, and why much of what passes for climate action may be making things worse. While offsets dominate headlines, it's the regulated markets that deliver real emissions cuts by design, not intention. They unpack how cap-and-trade channels profit into abatement, why moral hazard plagues the voluntary space, and where long-only investors can find a real risk premium. From structural inefficiencies to measurable impact, this is a conversation about aligning incentives with outcomes - in a market where price isn’t just a signal, but a lever.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

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Send your questions to info@toptradersunplugged.com

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Moritz on Twitter.

Episode TimeStamps:

02:14 - Introduction to Mike Azlen

04:00 - What are Carbon Markets and how do they function?

13:32 - How Carbon Markets work in different countries

16:35 - The complexities of carbon offsets - viable or just a scam?

21:58 - Is Carbon Capture a viable solution to the climate crisis?

25:44 - Why is there a risk premium in compliance carbon markets?

29:31 - The difference between spot and physical permits

32:35 - Why is the funding premium so large in California?

33:49 - The investment philosophy behind Carbon Cap Management

36:56 - It's all in the EUAs

40:50 - The positive impact of Carbon Cap Management

45:39 - Wrapping up

Copyright © 2025 – CMC AG – All Rights Reserved

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