We are going through one of the biggest transformations in history. We cannot win a battle against climate change without a tremendous commitment. Thankfully an acceleration in the fight against climate change has been witnessed since the Paris Agreement on the 12 December 2015.
As of March 2021, 195 UNFCCC members have signed the agreement.
The Paris Agreement’s long-term goal is to keep the increase in global average temperature to well below 2 °C above pre-industrial levels; and to limit the increase to 1.5 °C, since this would substantially reduce the risks and effects of climate change.
We don’t need to exaggerate the importance of this mission; the message has become clear. Any smart business looking at the long-term success are already taking part. The smart money is already been divesting into business that is set up sustainably and is managing climate risk and exposure. Socially responsible and impact investing is already measured in Trillions of dollars.
We are experiencing a movement that is being described as the green industrial revolution.
Over the last year, from the perspective of an active market participant, we are seeing surging movement in the market. Not only are governments tightening emissions related policy and mechanisms for monitoring reporting and verifying emissions, many are in the process of updating their Nationally Determined Contributions (NDCs) with more ambitious goals than originally published after signing the Paris Agreement.
Private sector waking up
The private sector is accelerating action too, driven by wide ranging initiatives such as the CORSIA for airline emissions, the Taskforce for Scaling the Voluntary Carbon Markets, accelerating adoption of Net Zero Targets and similar implementation of ESG policies. The actions are not being done by just the large high-profile multinationals, but SMEs are increasingly active in the market, demonstrating climate commitments and establishing leadership.
These impacts have already been impacting the Voluntary Carbon Market over the last year. Especially in the voluntary markets, the stream of corporate pledges can be concretely witnessed in the markets, with private sector demand hoovering up much of the carbon credits in the market, driving prices higher as historical oversupplies are consumed. In terms of prices, we’ve already seen considerable mark-up, with some high-quality project types more than doubling in price. Project developers in the carbon markets are scrambling to set up new projects to meet the emerging demand.
Note we are still at a very early stage in the firming of carbon markets as a viable and robust mechanism to meet the broader path to meeting climate commitments.
This macroeconomic shift has created the fastest growing sector of industry we have seen lately. The opportunities arising are spectacular as we are moving from an economy fueled by non-renewable sources and wasteful consumption toward a world that is sustainable.
What we do
This is the reason we are here, the passion for positive change, the drive to being a part of an economy that is renewing though incredible innovation, ambition and far reaching new opportunities.
We are one component in the climate markets, working with project developers and impact investors to drive finance to projects to combat the climate crisis. Our objective is to fuel the scale up of the markets that we need to help meet global climate goals through supporting sustainable and profitable businesses.
We love to hear from likeminded people and companies, if you are looking for finance for a sustainable project or are looking to find bankable projects, reach out to us and lets start a conversation.
