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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Across my career I’ve repeatedly seen the power of mobilizing catalytic finance into nascent or transitional markets, allowing much needed markets flourish and mature, whilst delivering sustainable risk-adjusted returns. Approaching carbon and nature finance as an asset class just like traditional infrastructure has the power to create lasting change.
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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What does the Carbon Credit Issuance process look like? 👇 Here’s a breakdown of ACR’s process and the lifecycle of the carbon credits they issue: 🔄 This infographic is a great summary of the many steps needed to develop, issue, and retire high-quality credits. According to ACR at Winrock International “each step plays an important role in ACR’s ability to create confidence in the integrity of carbon markets to catalyze transformational climate results." The whole process is guided by the ACR Standard, which you can find here: https://lnkd.in/e7kF4wB4 Here’s some Carbon Markets 101 for you: The Life Cycle of ACR Carbon Credits 1. Methodology Development 2. Feasibility Assessment (based on the methodology) 🔍 3. Project Listing ✅ 4. Public Comment (30 day period) 🗣️ 5. Validation and Verification (by a third party VVB) 🔍 6. Review (project can be accepted, accepted pending corrections, or rejected) 7. Project Registration (documents are publicly available) 📄 8. Carbon Credit Issuance ✅ 9. Retirement (permanently removed from the registry) This in-depth process helps ensure quality and integrity, which is vital for developing trust in the carbon markets and for making a substantiated impact in the fight against climate change. Any questions about this process? Which steps are you most curious about? Let us know 👇 To read more about ACR at Winrock International’s work, visit their website: https://lnkd.in/e2DaceuM 🚀 Enjoy this kind of content? Follow our page and visit our website for more thought leadership related to the carbon market, climate finance, and sustainable development!
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Paul is an Earth Scientist, Business Owner and Project Manager, with over twenty (≥20) years of experience in the ESG, Sustainable Finance and environmental sectors.
🌍 Milestone Alert! More than USD300bn in certified bonds!! The Climate Bonds Standard & Certification Scheme Crossed USD 300 Billion in 2023... Read all about it, as we continue to ensure credible green and sustainable funding using our standard, sector criteria and green bond rules. #ClimateBonds #GreenFinance #TransitionFinance #SustainableInvestment #USD300BillionMilestone
🌍 Milestone Alert! Climate Bonds Standard & Certification Scheme Crosses USD 300 Billion by the end of 2023 As we stepped into the closing moments of 2023, a remarkable milestone was achieved: Certified Climate Bonds soared past USD 300 billion. This landmark figure not only cements the Climate Bonds Standard and Certification Scheme as a pivotal benchmark in climate investment but also highlights its expansive scope. Spanning over 16 sectors and 20 diverse debt instruments - from bonds to loans and green deposits - the Certification Scheme showcases its versatility across the global finance landscape. With 294 issuers from 52 countries, the scheme envelops a wide spectrum of climate-focused instruments, including sovereign and sub-sovereign bonds, major global banks, and key players in sectors like #transport, #energy, #buildings and #water to name a few. This achievement is more than just a number; it represents the growing commitment of markets worldwide to sustainable and climate-aligned investments. The Climate Bonds Standard has evolved from focusing solely on energy to encompassing entire infrastructural realms, now certifying whole entities beyond individual debt instruments. Join us in exploring the full breadth and depth of this USD 300 billion achievement. Discover how it's driving the green finance revolution and what this means for the future of sustainable investments. Read our detailed blog post to delve into the sectors, instruments, and global reach of this groundbreaking milestone: 🔗 Link: https://lnkd.in/gS92zVAi #ClimateBonds #GreenFinance #TransitionFinance #SustainableInvestment #USD300BillionMilestone Kestrel , ISS ESG, Morningstar Sustainalytics Corporate Solutions, S&P Global, Moody's Corporation, SOCIETE DU GRAND PARIS, FS Fueling Sustainability, ACWA Power, Ecoagro, San Francisco Public Utilities Commission, Marina Strovolidou, Ian H., Paul S Vermaak
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Great news from the most recent data update - Climate Bonds has certified over USD300bn in #sustainablefinance. This is important as the criteria we develop for Certification are rigorous and #sciencebased - that means every Certified bond is not only providing benefits to the issuers and investors from the labelled finance but delivering tangible #climatebenefits in the real economy.
🌍 Milestone Alert! Climate Bonds Standard & Certification Scheme Crosses USD 300 Billion by the end of 2023 As we stepped into the closing moments of 2023, a remarkable milestone was achieved: Certified Climate Bonds soared past USD 300 billion. This landmark figure not only cements the Climate Bonds Standard and Certification Scheme as a pivotal benchmark in climate investment but also highlights its expansive scope. Spanning over 16 sectors and 20 diverse debt instruments - from bonds to loans and green deposits - the Certification Scheme showcases its versatility across the global finance landscape. With 294 issuers from 52 countries, the scheme envelops a wide spectrum of climate-focused instruments, including sovereign and sub-sovereign bonds, major global banks, and key players in sectors like #transport, #energy, #buildings and #water to name a few. This achievement is more than just a number; it represents the growing commitment of markets worldwide to sustainable and climate-aligned investments. The Climate Bonds Standard has evolved from focusing solely on energy to encompassing entire infrastructural realms, now certifying whole entities beyond individual debt instruments. Join us in exploring the full breadth and depth of this USD 300 billion achievement. Discover how it's driving the green finance revolution and what this means for the future of sustainable investments. Read our detailed blog post to delve into the sectors, instruments, and global reach of this groundbreaking milestone: 🔗 Link: https://lnkd.in/gS92zVAi #ClimateBonds #GreenFinance #TransitionFinance #SustainableInvestment #USD300BillionMilestone Kestrel , ISS ESG, Morningstar Sustainalytics Corporate Solutions, S&P Global, Moody's Corporation, SOCIETE DU GRAND PARIS, FS Fueling Sustainability, ACWA Power, Ecoagro, San Francisco Public Utilities Commission, Marina Strovolidou, Ian H., Paul S Vermaak
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📢 Today at 3pm GMT Introducing the inaugural Net Zero Finance Report Card, a joint research project between the Centre for Climate Finance & Investment at Imperial College Business School and Carbon Tracker. A growing number of financial institutions worldwide are having a positive impact on tackling catastrophic climate change in line with scientific targets, with nine particular companies making significant inroads. Authors Dr Iva Koci, Jean Sau and Amy Owens have assessed the credibility of institutions’ climate commitments and actions based on evidence-based criteria and principles set by the UN Race to Net-Zero and the International Energy Agency’s net-zero by 2050 scenario. The findings are revealed in a new report designed to set an industry standard for driving sustainable change across the financial services sector. The study scored financial companies according to whether they had explicit policies on eradicating financing for fossil fuel expansion or investment from their operations, as well as assessing the extent to which they had accomplished their aims. Nine institutions were given a Gold award for their efforts out of the 50 institutions assessed. Join the webinar 👉 https://lnkd.in/e8_dCvcp Find out which institutions ranked higher than all others 🏅 https://lnkd.in/e9CB3cPR #NetZero #DebtFinance #EquityFinance #GreenFinance
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🌍 Milestone Alert! Climate Bonds Standard & Certification Scheme Crosses USD 300 Billion by the end of 2023 As we stepped into the closing moments of 2023, a remarkable milestone was achieved: Certified Climate Bonds soared past USD 300 billion. This landmark figure not only cements the Climate Bonds Standard and Certification Scheme as a pivotal benchmark in climate investment but also highlights its expansive scope. Spanning over 16 sectors and 20 diverse debt instruments - from bonds to loans and green deposits - the Certification Scheme showcases its versatility across the global finance landscape. With 294 issuers from 52 countries, the scheme envelops a wide spectrum of climate-focused instruments, including sovereign and sub-sovereign bonds, major global banks, and key players in sectors like #transport, #energy, #buildings and #water to name a few. This achievement is more than just a number; it represents the growing commitment of markets worldwide to sustainable and climate-aligned investments. The Climate Bonds Standard has evolved from focusing solely on energy to encompassing entire infrastructural realms, now certifying whole entities beyond individual debt instruments. Join us in exploring the full breadth and depth of this USD 300 billion achievement. Discover how it's driving the green finance revolution and what this means for the future of sustainable investments. Read our detailed blog post to delve into the sectors, instruments, and global reach of this groundbreaking milestone: 🔗 Link: https://lnkd.in/gS92zVAi #ClimateBonds #GreenFinance #TransitionFinance #SustainableInvestment #USD300BillionMilestone Kestrel , ISS ESG, Morningstar Sustainalytics Corporate Solutions, S&P Global, Moody's Corporation, SOCIETE DU GRAND PARIS, FS Fueling Sustainability, ACWA Power, Ecoagro, San Francisco Public Utilities Commission, Marina Strovolidou, Ian H., Paul S Vermaak
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#Carbon Pricing Surge Sparks Climate Finance Boom with $100B Raise About 23% of global greenhouse gas emissions are now subject to carbon pricing mechanisms, which collectively raised $100 billion in 2022 alone, according to a recent report by the Carbon Market Institute (CMI). The report is a part of CMI’s International Carbon Market Update for 2024. It provides insights into global carbon pricing and policy as well as investment trends in decarbonization efforts. CMI is a member-based institute with over 150 members. They include various stakeholders such as primary producers, carbon project developers, Indigenous organizations, legal and technology firms, insurers, banks, investors, corporate entities, and emission-intensive industries.
Carbon Pricing Surge Sparks Climate Finance Boom with $100B Raise
carboncredits.com
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Our updated Green Bond Framework is out! The framework follows the EU taxonomy more closely by using the significant contribution criteria as eligibility criteria in many categories. The framework considers hydrogen, circular economy, and biodiversity as well as climate change adaptation as new eligible project categories. In addition, the layout of the framework is improved for more clarity! Have a look! #greenfinance #sustainablefinance #vihreäsiirtymä #greentransition #greenbonds
OP Corporate Bank's Green Bond Framework has been updated! The update aims to better respond to significantly evolving requirements of green finance as well as OP Financial Group's climate and environmental targets. The key highlights of the Framework and update are listed below. What's new? 🌱 For the first time, the framework considers the Substantial Contribution Criteria of the EU Taxonomy as eligibility criteria. ☘ There are two types of eligibility criteria: Economic activities that fulfill the Substantial Contribution Criteria of the EU Taxonomy and OP Corporate Bank’s internal criteria based on the leading market practices. 🌲 Examples of new categories include, for instance, hydrogen economy, circular economy, and biodiversity. What is the framework used for? -To outline the eligibility criteria for green projects that can be categorized as green within the OP Green Bond framework. -To support OP Green Bond investors to evaluate the green eligibility of the projects and to make informed investment decisions. The new OP Green Bond Framework 2024 can be found here: https://lnkd.in/dgkX5VuP A Second-Party Opinion (SPO) from Sustainalytics have been published at OP Financial Group’s Debt Investor Website. Read more: https://lnkd.in/dwWMiKzg
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Happy to share that OP Financial Group updated its Green Bond Framework for OP Corporate Bank. Our framework 🍀 follows the EU taxonomy more closely by using the significant contribution criteria as eligibility criteria in many categories. 🍀 considers hydrogen, circular economy, biodiversity and climate change adaptation as new eligible project categories. 🍀 has a new layout for more clarity! Thank you 💚 Asko Siintola Venla Koljonen Laura Linnavirta Juho Kuisma Ida Koski ⬇️ For more info, please check it out! #greenbonds #greenfinance #sustainablefinance
OP Corporate Bank's Green Bond Framework has been updated! The update aims to better respond to significantly evolving requirements of green finance as well as OP Financial Group's climate and environmental targets. The key highlights of the Framework and update are listed below. What's new? 🌱 For the first time, the framework considers the Substantial Contribution Criteria of the EU Taxonomy as eligibility criteria. ☘ There are two types of eligibility criteria: Economic activities that fulfill the Substantial Contribution Criteria of the EU Taxonomy and OP Corporate Bank’s internal criteria based on the leading market practices. 🌲 Examples of new categories include, for instance, hydrogen economy, circular economy, and biodiversity. What is the framework used for? -To outline the eligibility criteria for green projects that can be categorized as green within the OP Green Bond framework. -To support OP Green Bond investors to evaluate the green eligibility of the projects and to make informed investment decisions. The new OP Green Bond Framework 2024 can be found here: https://lnkd.in/dgkX5VuP A Second-Party Opinion (SPO) from Sustainalytics have been published at OP Financial Group’s Debt Investor Website. Read more: https://lnkd.in/dwWMiKzg
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Professor at Keio University; and Advisor for Sustainable Policies at the Asian Development Bank Institute (launched at ADBI-ADB Climate Finance Dialogue in Novembe 2023)
I am pleased to announce that my paper, titled "Transition Finance to Drive an Economy-Wide Transition for a Net Zero Future," has been published. Transition finance is becoming an important topic in climate finance, garnering attention worldwide, including in Asia. My more developed perspecitves will be shared in the paper coming in October. https://lnkd.in/g9NRzCuh
NJ_2024_P04-09_PERSPECTIVE.pdf
nomurafoundation.or.jp
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