“We have seen carbon credits in the range of 20 to 30 euros, starting from 2022 to about 90 euros now. This is an astonishing move in valuation, which in itself has clearly brought in a lot of investors in the sector,” he said.
Secondly, he said, “I think there is a general understanding globally that there is a need to reduce carbon emissions in the developed world. The European system, in particular, is putting in place a cap-and-trade system that reduces carbon emissions.” and we have seen that carbon emissions in Europe have come down to some extent.
Since launching it in 2005, he said the European index has helped reduce European emissions from power generation and energy intensive industries by 42%. “It’s a pretty incredible benchmark of success,” Noble said. “So, there’s definitely a nice downside to this investment category.”
This is especially true for investors who want a greener, decarbonized economy because he noted that credits can only be created as a result of companies going below emissions targets.
Noble said, “It’s a way to carve out the carrot for low-carbon production among the industry and it makes for a very interesting way for investors to align their values and put their money toward an asset class that is effective.” significantly reducing greenhouse gases.” “So, it has attracted a lot of institutional as well as retail investors to the space.”
