Wednesday, 17 August 2011

THE FUTURE OF CARBON CREDITS BY GMO Green Market Opportunities

With the huge pressure on the US to join the rest of the world in developing methods to reduce their enormous emissions, particularly with the additional pressure of China announcing the launch of their own carbon trading market in 2012, we believe it is not a matter of “if” the US will introduce their cap & trade system but “when.” With voluntary US credits trading relatively low at present we firmly believe that those with the foresight to enter now realistically stand to earn very good returns with some market specialists quoting as much as 200%+ within the next 2-5 year timeframe.
All voluntary credits are set to increase in value because, at the Copenhagen COP15 conference in 2009, the Kyoto Protocol failed to be extended beyond 2012. The CDM credits born out of the protocol may, therefore, cease to exist so the marketplace is now rushing to buy voluntary credits to mitigate this situation and diversify their portfolios.
The Voluntary Carbon Market is a great starting point due to low cost entry and recognised and identifiable carbon standards, true and transparent verifications by credible third party organisations and official public registries and exchanges.
WHO WILL BUY MY CARBON CREDITS?
In the compliance market, companies, governments and other entities purchase carbon offsets to comply with regulation. In the voluntary market, individuals, companies and governments buy offsets to mitigate their emissions from transport, electricity consumption, etc.
Companies often purchase carbon credits for corporate branding and to raise their profile. It is increasingly popular for businesses to advertise themselves as carbon friendly / neutral or display the types of projects they have invested in to assist global warming issues, improve bio diversity and help local communities in developing countries. More and more companies are buying carbon credits to retire and offset their emissions as part of their CSR (Corporate and Social Responsibility) program.
Even major rock bands like the Rolling Stones buy carbon credits to offset their emissions when touring. The other reason for the private investor is the “pre-compliance buy” or those buying in anticipation of regulation, which is expected in the US soon.
The world population is increasing at an alarming rate and is expected to reach 9 billion by 2050 and has quadrupled in the last century alone. A 3% annual global growth rate will result in the doubling of consumption & production of food and other commodities within the next 25 years.
Limits imposed by law on GHG emissions globally will undoubtedly continue to increase. Already when you buy products and services you are often asked if you want to offset your emissions (when booking a flight for example).
So less emissions allowed and more people and products polluting will drive the demand and need in the marketplace considerably.
SUMMARY.....
Because of the reasons above GMO or Green Market Opportunities only select high quality carbon credits of VCS and Gold Standard that are fully verified and validated making them 100% transparent before buying or selling.
We choose projects that we believe represent the best value for our clients whilst paying careful consideration to the merits of each project regarding the true impact on the environment and the local communities.
Once the necessary due diligence is complete, we ensure that every project we put in front of our clients has been verified by a reputable and recognised entity and is officially registered and, therefore, traceable and trackable. We do not promise or guarantee returns but we do believe that, what we offer exposes our clients to the least possible risk whilst offering the best potential for maximum profit.


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