Key takeaways
Key takeaways
- The climate transition is an unprecedented shift in terms of investment, technological change and behavior change.
- Carbon credits are one of the tools in the toolkit to support and accelerate that transition.
- To make full decarbonization more economical, carbon prices will have to reach a range of USD 100 to USD 500/metric tonne.
- A carbon credit represents one metric tonne of carbon dioxide or greenhouse gas equivalent.
- Two types of carbon credits: compliance carbon creditÌýand voluntary carbon credits.
- Cost, supply and quality dynamics impact the price of a credit.
- The European Commission (EC) releases a fixed amount of carbon emission credits each year – the cap. That cap is coming down each year, reducing the amount of total emissions.
- With growing demand for carbon credits and more participants, we expect the market to become more standardized.
About the authors
Rebecca Idell
Head of Sustainable Finance and ESG Structuring, ÃÛ¶¹ÊÓƵ Investment Bank
Rebecca joined ÃÛ¶¹ÊÓƵ in 2016 and is an Executive Director responsible for Global Markets Sustainable Finance and ESG Quantitative Investment Strategies (QIS) Structuring.
Virat Agarwal
Head of Commodities Structuring, ÃÛ¶¹ÊÓƵ Investment Bank
Responsible for a market leading commodities business across beta, enhanced beta, risk premia, structured products and corporate hedging. He is also a Cross-Asset QIS (Quantitative Investment Solution) Structuring Specialist with extensive experience in designing rates, emerging market and FX based QIS indices.
Ray Fuller
Head of Indexed Alternatives Portfolio Management, ÃÛ¶¹ÊÓƵ Asset Management
Responsible for the development and management of investment portfolios across derivative products, ETFs, commodities and structured funds.
Ray joined ÃÛ¶¹ÊÓƵ Asset Management in 2012. Prior to this he was a portfolio manager within the Structured Solutions team at Aviva Investors where he was responsible for portfolio construction and management. Prior to this Ray spent three years at ÃÛ¶¹ÊÓƵ Investment Bank working in the Exotic & Structured Derivatives group.
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Introducing our leadership team
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