Carbon credits are controversial, but they may underpin or partially finance the impact fund you’re in, the grant work you’re doing, they may be held directly or indirectly in your ESG, environment or sustainability fund, and are being relied on to incentivize the market --- they’ve also crashed this year:
Why? Some point to structural concerns with this mostly unregulated market, others to recent malfeasance by market players, some to the impacts of ongoing conflicts. Yet it’s an important market to many, including EU Climate Policy – as a “main tool for cutting carbon dioxide emissions”. Question for your asset managers: how does this move affect your portfolio? How do they see the market developing from here and what are the implications?