Imagine for a moment that every major corporation in the world had to buy a specific amount of gold every year.
Oh – and global governments were going to increase the price of gold over time…
…and continually remove gold from the public supply.
You’d invest in gold in a heartbeat. It’s a no-brainer, right?
Pay close attention to this:
- Substitute “Carbon Credits” for “gold,” and that’s exactly what’s unfolding right now behind the scenes.
The plot started back in the late ‘90s, when many of the world’s largest governments ratified the Kyoto Protocol.
It was a tiny experimental step toward helping countries lower carbon emissions.
All over the world, little pockets of the protocol have been popping up.
You’ve probably heard of them as “cap-and-trade.”
Whatever they’re called, they require corporations to purchase carbon credits to cover emissions.
Right now, there’s:
- The EU Emissions Trading System (ETS), the largest regional carbon market in the world
- A massive statewide cap-and-trade program in California
- Similar schemes in Tokyo, Quebec, and New Zealand
- And a new country-wide ETS launching in China this year
Demand from those programs has fueled massive growth in the carbon credits sector.
- In the EU alone, carbon credit prices have risen more than 500% in the last four years.
But there has never been a worldwide system for the sale and purchase of carbon credits.
Until now.
In just one month, the little Kyoto Protocol will be transformed into a massive, global system.
For the first time in history, there will be a unified worldwide marketplace for the exchange of carbon credits.
And nearly every major corporation in the world will be forced to lower their carbon emissions—or buy carbon credits.
Here’s the thing.
The ten largest carbon-pricing systems in the world currently only cover about 5.5 gigatonnes (GT) of emissions… just 10% of the global total.
So, by itself, a global ETS would be enough to massively jolt the carbon credit market upward.
COP26 is about entire countries buying massive amounts of carbon credits.
Participation in the newly established global carbon market will be compulsory for countries that cannot lower their carbon emissions enough to meet their Paris Agreement commitments.
As you probably already know, that includes… nearly every country in the world.
Think for a moment about what will happen when the world’s largest economies come online in the new program.
Suddenly, 50 GTs of emissions will need to be covered by carbon credits for countries.
And another 50 GTs will be needed for companies in those countries.
It’s Simple Math: Demand Will Rise by at Least 20x
So mark my words. When Kyoto goes global, it’s going to be a nuclear bomb for the carbon market.
And remember, they’re going to get squeezed from the other end, too.
The key feature of emissions trading systems is that the number of carbon credits decreases over time—even as they’re getting more expensive.
It’s going to trigger the same runaway pricing as lumber in 2020… only for a decade straight.
Private investors can’t make money from ETS schemes—yet.
But you can invest in the Voluntary Carbon Market (VCM).
Right now, the whole market is only worth around $1B.
Due to the actions taken at COP26, the VCM is expected to be north of $160B by 2030.
Re-read those 2 lines again…
This is exactly like investing alongside Warren Buffett at the very beginning of his career.
But you’ve got to take advantage of it today.
We’ve written a comprehensive report that outlines precisely what you need to know about COP26, carbon credits, and the VCM.
Most importantly, we give away the best way to invest in this explosive market.
Tomorrow morning, you’ll discover the “rocket fuel for carbon credits.”
If you want to know where they’re headed next, do not miss it.
And how you can set yourself up to profit.
Regards,
Marin
