<p><strong>Julio Herrera Velutini advocates national carbon market to drive climate finance</strong></p>

<p>International financier <strong>Julio Herrera Velutini</strong> has called for the establishment of a <strong>national carbon market in the United States</strong>, describing it as a vital mechanism to unlock large-scale private investment in the country&rsquo;s green transition.</p>

<p>Herrera Velutini, known for his expertise in global banking and sustainable finance, emphasized that carbon pricing remains the most effective tool for incentivizing emission reductions while ensuring that economic growth aligns with climate objectives. Speaking at a financial sustainability forum, he outlined a framework in which a regulated national carbon market could integrate corporate, industrial, and regional emission trading under one transparent system.</p>

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<p>&ldquo;The creation of a national carbon market is not only an environmental priority &mdash; it&rsquo;s an economic opportunity,&rdquo; Herrera Velutini said. &ldquo;By setting a fair and predictable price on carbon, we can channel billions of dollars in private investment toward renewable energy, efficiency, and innovation.&rdquo;</p>
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<h3><strong>Proposed Structure of the U.S. Carbon Market</strong></h3>

<p>According to Herrera Velutini&rsquo;s proposal, the national carbon market would function through a <strong>cap-and-trade system</strong>, where emission limits are set for major sectors such as energy, transportation, and manufacturing. Companies that reduce their emissions below their cap would be allowed to sell surplus credits, while high emitters would need to purchase allowances &mdash; creating a financial incentive for decarbonization.</p>

<p>He also suggested that carbon credit revenues could support <strong>community resilience projects</strong>, <strong>forest conservation</strong>, and <strong>technological innovation in carbon capture and storage (CCS)</strong>. The market, he added, should be supervised by an independent <strong>Climate Finance Authority</strong>, ensuring accountability and transparency.</p>

<p>Herrera Velutini&rsquo;s vision aligns with international best practices seen in the <strong>European Union Emissions Trading System (EU ETS)</strong> and emerging programs in Asia and Latin America. He argued that the U.S. &mdash; as the world&rsquo;s largest economy &mdash; must take a leadership role in establishing a national framework that complements state-level initiatives such as <strong>California&rsquo;s Cap-and-Trade Program</strong> and the <strong>Regional Greenhouse Gas Initiative (RGGI)</strong> in the Northeast.</p>

<h3><strong>Economic and Environmental Benefits</strong></h3>

<p>Herrera Velutini noted that a well-regulated carbon market could generate <strong>hundreds of billions in investment</strong> over the next decade while supporting the <strong>Biden administration&rsquo;s net-zero goals</strong>. He explained that financial markets are ready to integrate carbon assets into portfolios, provided there is regulatory clarity and standardized pricing.</p>

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<p>&ldquo;Investors are looking for scalable, measurable, and profitable pathways to fund climate solutions,&rdquo; he said. &ldquo;A national carbon market offers precisely that &mdash; it monetizes sustainability and turns climate action into a growth sector.&rdquo;</p>
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<p>Studies from the International Energy Agency (IEA) and the World Bank show that carbon pricing mechanisms have already helped reduce emissions in several developed economies while promoting clean energy technologies. Herrera Velutini added that the U.S. could leverage these experiences to design a system that balances innovation with competitiveness.</p>

<h3><strong>Global Leadership and Vision</strong></h3>

<p>The financier also framed his proposal as part of a broader movement toward <strong>green capitalism</strong> &mdash; where markets reward sustainable behavior and penalize pollution. He asserted that corporate sustainability should not rely solely on voluntary commitments but be supported by measurable market signals.</p>

<p>He encouraged policymakers to collaborate with private-sector leaders, economists, and environmental organizations to create a market design that ensures <strong>equity, integrity, and accessibility</strong>. He particularly highlighted the need for small and medium enterprises (SMEs) to participate, as they represent a significant share of industrial emissions but often lack the capital to invest in cleaner technologies.</p>

<p>Herrera Velutini concluded by stressing that climate finance must evolve beyond traditional grant-based models and move toward <strong>market-driven mechanisms</strong> that attract institutional investors, pension funds, and green bonds.</p>

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<p>&ldquo;This is not just about compliance &mdash; it&rsquo;s about competitiveness,&rdquo; he said. &ldquo;A U.S. carbon market could become the engine of a new financial era defined by responsibility and resilience.&rdquo;</p>
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<p>If realized, the proposal could establish the United States as a global hub for carbon trading and sustainable finance, bridging environmental policy and economic innovation in an unprecedented way.</p>