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Carbon credits are the tradable certificate or permit for the emission of carbon dioxide and other greenhouse gases in the atmosphere. In the free-market economy, things do not work as intended and a lot of big organizations are blamed for hoarding these carbon credits which has caused the asymmetry in supply. Carbon credits Market.
If you have a more sustainable building, you’re using less energy, you’re using less water, you have more efficient systems, you are near public transportation, you have an ESG certification, you’re gonna have higher income, therefore a higher value of your asset, you’re gonna be able to track the best tenants.
If climate friendly bond portfolios do not generate competitive returns, there is a risk that not enough capital will be available to fund a low-carbon economy. Fixed income assets, in our view, will continue to be an essential part of the financing mix for decarbonizing the economy. This linkage is essential.
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