Mispricing in voluntary carbon markets offers high potential returns for investors looking to support the path to net zero. Carbon markets investor Carbon Growth Partners (CGP) is betting on an imminent correction in the price of carbon credits to bridge the gap between impact and profitable investing. Following stronger-than-expected demand for its debut fund, the Carbon Growth Opportunities Fund, the firm recently launched a second vehicle focused on investments that contribute to global CO2 reductions. “Our goal is to be a dedicated investment manager in what most people call the ‘voluntary carbon market’ (VCM) – but we consider it a ‘verified carbon market’ because in our view, emissions reductions are not voluntary,” founder and CEO Rich Gilmore told FinanceAsia. Gilmore said his team was excited to be at the forefront of this investment trend, adding: “I think there’s a pretty fair consensus that decarbonisation and tackling climate change is the biggest and most important issue for the next 30 years.” Carbon credits allow companies to invest in projects that contribute to reducing global carbon emissions as part of their transition to net zero. One carbon credit is typically equivalent to reducing carbon dioxide emissions by one tonne. (Sara Velezmoro, FinanceAsia)
Carbon Growth Partners targets 20 % IRR from carbon markets
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