Value of Carbon Credits Projected to Soar Ahead of Net Zero Goals

Not All Carbon Credits Are Created Equal

Tesla didn’t become the juggernaut that it is based on its record EV sales1 alone.

While sales rose once again in the latest quarter,2 Tesla continues to bring in substantial revenue from regulatory (carbon) credits3—having already seen its carbon credit sales jump by 116% earlier this year.4

Most people don’t realize that selling carbon credits substantially helped the company turn its first profit in 20205—and in 2021, it was reported that Tesla made more money from credits and bitcoin than cars.6

Tesla derives value from these credits through the soaring demand from major corporations seeking to “net zero” their greenhouse gas emissions—many of which to date have made little progress.7

Now, many analysts and researchers are predicting a significant price increase in the voluntary carbon credits market in the very near future.8 9 10

This is why you need to know about an upstream commodity capital allocator which is financing and developing emission reduction projects to produce carbon credits for the voluntary markets.

This company stands out in the booming voluntary carbon markets as a well-funded, well-led business with tangible projects and projected near-term (2.5 years) ROI and short-term capital recovery.

And, in addition, these projects have drawn solid partnerships and lucrative off-take agreements with companies like Citigroup and SIPCO.11

This company is acting FAST and is further ahead of the game than most players in the space. So let’s take a deeper look into why they’re poised to make a big splash in a Net Zero world.

High-Demand Voluntary Carbon Market in Need of Quality Credits

Upon the conclusion of the COP26 conference in Glasgow, Scotland, 632 of the world’s largest 2000 public companies by revenue announced plans to achieve Net Zero greenhouse gas emissions.12

Even more corporations will likely sign on for these goals in the future as major financial superpowers that manage trillions of dollars, such as the US Federal Reserve13 and mega-funds such as Blackrock and Vanguard14 have signalled the utmost importance of taking climate goals seriously.

To meet these goals, at least two-thirds of companies will need to lean on voluntary carbon credits to get there.15

And because so many corporations will be chasing the same limited supply of high-quality carbon credits, we’re about to witness a true example of what’s known as a “Giffen Good”16—a very rare type of commodity whose demand rises when prices rise and falls when prices fall.

Corporations can’t exactly substitute an “oxygen credit” for a carbon credit when the latter is no longer available.

Many experts are already calling for significant price hikes in carbon to come very soon.

According to a recent Nature journal study,17 US carbon prices should be 3.6x higher than they currently are, with prices closer to $185.18

As demand for Voluntary Carbon Markets (VCM) credits increases, so does the price, further increasing demand… hence, we have a Giffen Good.

But not all carbon credits are created equal, and those that are buying VCM’s are seeking more transparency and tangible social development additionalities that go beyond nature-based projects

Corporate buyers require additional transparency, standardization and accountability from VCM vendors.19

There have already been calls for restrictions on using older, lower-quality credits,20 including nations putting moratoriums on certain kinds of credits.21

Not to mention the number of scams taking place in the market from dodgy vendors slinging fraudulent credits.22 23

The fact is, in order to meet the demand for carbon credits, project development would need to ramp up at an unprecedented rate. And at present, most of the potential supply of avoided nature loss and nature-based carbon sequestration is within a small number of countries.

And these challenges are expected to cause a huge drop in the world’s estimated supply of carbon credits per year by 2030,24 which is where this company comes in.

This company has a clear path for scale and growth potential through household devices (cookstoves and water purifiers), afforestation, reforestation and blue carbon projects, as well as leveraging current and anticipated pipelines from proven biodigesters and bio-fuels and introducing new products and verticals such as biochar and capture/sequestration technologies.

The company also has made strategic acquisitions and alliances with AirCarbon, Abaxx Technologies, and HCBL.

Robust Pipeline of Carbon Reduction Projects

The main two flagship projects of this company both involve fuel-efficient cookstoves and water purifiers.

As carbon “reduction” projects with strong social economic co-benefits this company is improving millions of human lives in their daily cooking and drinking activities.

In Vietnam, they’re working to facilitate carbon reduction through the distribution of 850,000 fuel-efficient cookstoves and 364,000 safe-drinking water purifiers.

Over a projected, Verra-certified25 10-year crediting period, household devices are anticipated to:

  • Generate approximately 26.6 million carbon credits
  • Significantly reduce CO2 emissions within the household and regional deforestation
  • Reduce consumption of wood by up to 70%
  • Remove 99.99% of bacteria from drinking water

Because 51.4% of Vietnam’s primary household energy is generated from solid fuel combusted within open fires or inefficient cook stoves for cooking or water sanitization, it’s anticipated the project will benefit over 1 million rural Vietnamese households.

Distribution of the devices is already underway, with approximately 285,000 having been distributed as of mid-August 2022, with full distribution expected by mid-2023.

RECAP: 7 Reasons This Company is Market Leader in the Carbon Credit Development Sector:

  1. High-Demand Voluntary Carbon Credits Market Needs More High Quality Credits
  2. Robust Pipeline of Voluntary Carbon Credit Projects
  3. Well-Funded, with Key Shareholders and Institutional Investors in addition to Short-Term Capital Recovery
  4. Strong Partnerships
  5. Strategic Project Offtake Agreements
  6. Exceptional Leadership
  7. Well-Balanced Capital Structure

Smart investors should do their own due diligence in this rapidly-growing market of carbon credits before the masses of the investment community catches on.

This company should be a strong candidate in this sector with the right team leading it, and an impressive portfolio of projects with near-term capital returns on deck.

So, be sure to continue following this story by signing up with your email address to receive more information about this promising company in a burgeoning sector.


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