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Showing posts from July, 2021

Is This Carbon Thing a Thing

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Decades of capital constraints for carbon offsetters are over. Wildlife Works and Hartree Partners just announced a US $2 billion, 20 project, 30 year deal to finance forrest conservation projects, for example. UN Envoy and former Bank of England governor Mark Carney's Taskforce on Scaling Voluntary Carbon Markets argues that voluntary carbon offset markets need to grow to $50-100b per year (from $320 mil) to fight climate change. Emitters are not just offsetting for virtue signalling purposes. According to Josh Crumb, a Toronto entrepreneur and commodities specialist, offsetters are motivated to attract a lower cost of capital as institutional investors demand higher ESG (Environmental, Social, and Governance) standards. Crumb expects carbon to be a bigger deal for Canada's capital markets than weed or mushrooms, where hundreds of startups have listed in the past several years. The high-speed, permanent capital structure, and risk appetite of Canada's markets are a good f