A carbon-constrained future would ordinarily make investing in carbon credits a worthwhile long-term investment.
The Paris Agreement sets out the first steps for how countries will limit global warming to 1.5 but no more than 2°C. Sending a price signal is the key and countries will increasingly rely on carbon markets to reduce emissions most cost-effectively.
To achieve the ambitious limits on global warming the supply of carbon credits to carbon markets will have to be more and more restricted. Consequently, investors are seeking opportunities to invest in carbon markets. However, carbon markets are complex, diverse and ever-changing, so choosing the wrong investment can be a risky proposal.
Compliance markets, the most liquid carbon markets, can be a roller-coaster ride as politics, energy prices and hedging behaviour conspire to influence prices. With our collective decades of carbon market and project development experience we help people and companies understand how to avoid the pitfalls of investing in carbon and cope with the risk inherent in these fast-changing markets.