As prices in the carbon market are at an all time low, now is the time for shrewd investors to take advantage
The carbon credit market is a global commodity market, initiated in 1997 by the Kyoto Protocol – an international agreement to reduce emissions of greenhouse gases, signed by around 190 nations.
Companies undertake projects that actively reduce overall carbon dioxide (CO2) emissions, for example, by replacing fossil fuel-based electricity generation with energy derived from renewable sources such as wind or hydropower.
For every tonne of CO2 or equivalent that they reduce, the companies responsible for these projects are awarded one “credit” by the United Nations Framework Convention for Climate Change (UNFCCC) and these can then be traded.
Carbon credits are certainly one of the new kids on the block of the investment community. Being environmentally driven, they appear to be completely on trend and are being offered with promises of huge investment returns.
Unfortunately, the truth of the carbon market is mostly misunderstood and is often misrepresented by the majority of retail carbon brokers. So is there any reality to these promises of spectacular investment performance?
Like many things in life there are no guarantees, there is a degree of speculation and there are risks. However, with the correct levels of due diligence, you will find that the facts speak for themselves.
Carbon is currently priced at a historical low, but with an understanding of market dynamics this can offer the shrewd investor potential for the coveted “buy low” entry point.
The current market size of $125 billion, which is forecast to grow to $3 trillion by 2020, cannot be ignored by the shrewd investor. Ace Carbon is offering a unique opportunity for clients to invest in government-backed solar projects in Asia by purchasing compliant carbon credits at half the current market price, creating potential for a significant investment performance.
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