LONDON–(BUSINESS WIRE)–#UKCARBONCREDITS–Martello, a UK-based capital transition firm, enters the global carbon markets with its first issuance of 32,000 carbon credits, it expects to trade at £30 per unit. Since 2021 the voluntary carbon markets (VCMS), where companies go to buy their credits to meet net zero, have jumped in size by 74% and are valued at $7.4bn.
Martello’s carbon credits address the widespread concerns that the carbon markets are filled with poorly validated junk credits, which creates issues for investors, companies with net zero ambitions and the genuine risk of greenwashing and ESG litigation due to invalid climate disclosures.
Jonny Mulligan, Founder of Martello, “The carbon credits market has massive economic and climate potential, but today they are largely broken. Credits are an essential tool to reduce carbon and meet net zero at speed. Today we have an opaque market, lacking innovation and transparency on which we rely for up to 80% of carbon reduction by 2030”.
Industry analysts estimate the carbon credit market to be worth over $50 billion in 2030, with a 100% increase again by 2050. However, there is frustration with the three central non-profit Carbon Offsetting Standards responsible for up to 74% of credits. The inflation of credits and overstatement of carbon reduction favour developers, standard setters, and verification bodies while companies avoid carbon taxes by purchasing credits cheaply.
Recent research indicates up to 85% of specific projects validate junk credits create a dilemma for investors. Mulligan continues, “With little or no market regulation, legitimacy, credits in the carbon markets are like the credit default swaps. With little warning, a carbon project promising millions could be worthless, leaving investors with no returns”.
Martello ran an extensive and competitive bid process across the global carbon markets to find the team to create the first global standard for hemp and validate the credits. “We went with the Re-generation Earth team because of the robust science and their insistence on data transparency across projects”.
Martello is hosting The Peripatetic Series on the global carbon credits markets in April and May 2023 to promote buying good credits and raise awareness of greenwashing.
Ends
For more information, visit https://www.themartelloadvisory.com.
Contacts
For more information:
Hasane Ahmed
hasane@themartelloadvisory.com
For a quote:
Jonny Mulligan
Founder
Martello
00447539075213
jonny@themartelloadvisory.com