Terra Natural Capital’s Post

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So you think there are more than enough carbon credits…. As the urgency to address climate change intensifies, the spotlight on carbon markets continues to intensify. ⚖️ However, a significant challenge looms large: the gap between the supply of sufficient-quality carbon credits and burgeoning demand, amidst a lack of institutional capital. This mismatch underscores a critical need for strategic interventions in carbon finance. 📊 The Supply-Demand Disparity Current projections reveal a startling imbalance in the carbon credit market: - Despite growing demand that is expected to outpace supply by over four times, the actual availability of carbon credits remains alarmingly low. - This shortfall highlights an urgent need for an estimated $1 trillion (mid-case estimate) in investments by 2050 to catalyze the necessary supply increases. The carbon market is at a pivotal inflection point. For forward thinking investors, market dynamics today present a unique opportunity set: ❗ An urgent need to scale-up supply to meet aggressive global climate targets. 📈 A maturing market with vast potential to deliver returns. 💵 A critical role for sophisticated capital to navigate and nurture this growth. _____________ At Terra Natural Capital, we’re tackling this head-on with flexible project finance, supporting both carbon project developers and corporate buyers of credits. Our model bridges the finance gap, providing long-term capital through uniquely-structured investment solutions. If you’re interested in learning more about our existing portfolio and active pipeline, drop us a line. ** Correction to graphic below: source is MSCI Research, September 2023

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