In Consideration of Purchasing Carbon Credits
Investing in marketable carbon credits offers several key opportunities:
- Diversification
Non-Correlated Assets. Carbon credits are not closely tied to traditional asset classes like stocks or bonds, providing diversification in an investment portfolio. - Growth of Carbon Markets – Demand Pressure
With stricter global regulations and carbon pricing mechanisms, the demand for carbon credits is likely to grow, presenting a potential investment opportunity. - Environmental Impact
Climate Action: Carbon credits fund projects that reduce greenhouse gas emissions, directly contributing to the sustainability of our lovely planet. - Financial Returns
Price Appreciation: Tightening emissions regulations may increase the price of carbon credits, offering demand side potential for returns over time. - Moral Considerations
In this firm’s opinion, the acquisition of land that may produce valuable carbon credits to offset pollution could displace native populations in oxygen producing forested areas. Fineberg Wealth Management will not participate with firms engaging in such practices.
Carbon credit investment carries risks including price volatility and regulatory uncertainty. Therefore, careful consideration is necessary. Please consult with your advisor.
The information in this post was compiled by S. Zachary Fineberg, CFP(r) Managing Member of Fineberg Wealth Management, LLC, a registered investment advisor. If you would like to schedule a consultation to discuss how Fineberg Wealth Management can help you reach your long-term financial goals, please make contact to discuss.
Photography Credits: Creative Commons Zero, Public Domain Dedication
Martin St-Amant – Wikipedia – CC-BY-SA-3.0
Women In Forest. Photographer unknown. Photo credited to UK Ministry of Information
