Voluntary Carbon Credits

Carbon credits are playing a vital role in the transition to a net zero world. But to reach their full potential, they can no longer be viewed as a commodity. To understand why a shift in perception needs to happen, we need to look at how the Voluntary Carbon Market (VCM) has evolved versus how it is operating today. This white paper will equip you with the foundational know-how you need to understand and evaluate carbon credits as an asset class. 

It covers:

• The role carbon credits are playing in sustainable development
• Pricing behavior in the Voluntary Carbon Market
• How systematic vs. idiosyncratic risk affects pricing behavior
• Why carbon credits were traditionally viewed as a commodity
• Evolution of voluntary carbon market credits
• Why voluntary carbon credits should be an idiosyncratic asset class
• How direct asset pricing offers more transparency