HomeResearchCarbonThe Most Misunderstood Commodity on Earth: Carbon Credits

The Most Misunderstood Commodity on Earth: Carbon Credits

The Most Misunderstood Commodity on Earth_ Carbon Credits-min

In 2016, 191 countries, representing 97% of global carbon emissions, signed on to the Paris Agreement.

Each country committed to a certain amount of carbon emissions cuts by a certain date.

By the way, this has nothing to do with politics… what party you belong to, what god… or even if you believe (or not) in global warming or climate change.

The Paris Agreement is a legally binding treaty on climate change (I’ll tell you why that’s so important in a moment).

The stated goal is to limit global warming “well below 1.5 degrees Celsius.”

  • Reality check: The global temperature has already risen 1 degree Celsius.

Meanwhile, emissions have barely fallen, as you can see here…

co2 net emissions The blue portion of the graph above shows the total CO2 emissions in the time since the Paris Agreement in 2015.

In short, nothing has happened in the past five years.

The longer nothing happens, the steeper the slope will have to be to hit 2030 emissions targets. And far more drastic methods will have to be used to reach the same result.

emissions gap in 2030 As you can see from the graph above, even if everything in the Paris Agreement comes together perfectly

It still won’t even get close to the set-in-stone 1.5 degrees Celsius target.

  • In short, the Paris Agreement is not enough… and not working
    at all

Politicians fighting against carbon emissions is like bringing the calvary to a nuclear war.

That’s why the effort to “decarbonize” the world is at an incredible inflection point:

It’s simple. We’re on the brink of an all-out, no-holds-barred…

Global War on Carbon Emissions

It’s not just CO2 emissions.

But also methane (which 1 ton of methane has about the 25tons the heating potential of CO2 and gets abbreviated CO2e for equivalent) and nitrous oxide (which equals about 298x the heating potential of CO2 and also gets abbreviated CO2e for equivalent).

The War on Climate officially begins on November 1, 2021 at the COP26.

Expect all the media and all the global leaders to bring all their arsenals to the launching of the War on Carbon Emissions.

The COP26 is the United Nations Climate Change Conference in Glasgow, Scotland.

Remember when I said it’s important that the Paris Agreement is “binding”?

Here’s why…

The Paris Agreement is the Geneva Convention of the 21st century. Only instead of protecting soldiers… it’s protecting the planet.

Countries that violate the agreement will be met with similarly harsh penalties.

The courts are already ruling against the big emitters…and it’s only starting.

monumental victory shell oil ordered to limit emissions Two things are going to happen at the conference that is a global first:

It’s the first “global report card” for the Paris Agreement.

In other words, every U.N. member state will have to re-evaluate their progress against their previous commitments.

Current estimates are that they’ll find out they’re not even on track to limit global heating to 3 degrees Celsius (but you already knew that).

It’s also the first-time nations will be required to exercise the “ratchet mechanism.”

Every five years, each nation is supposed to “ratchet up” its “nationally determined contributions” to the next level to ensure even more aggressive targets are met.

In short, they’re going to discover pretty fast that they need more offensive pressure to cut carbon emissions.

And the race is on.

The key point is this…

This is one of the most exciting sectors I’ve EVER SEEN

The largest public institutions like the World Bank, International Finance Corporation (IFC) or the International Monetary Fund (IMF) have all thrown their weight behind the movement…

The largest pools of capital in the bond market (now called Green Bonds) have collected trillions of dollars looking to be deployed into companies that will aid in the War on Carbon Emissions.

Household names like

  • Apple,
  • Microsoft,
  • Disney,
  • Google,
  • And even oil giants British Petroleum, Shell, Exxon, Chevron have made enormous commitments to “decarbonize”.

That’s street talk for “investing tens of billions into trying to solve this problem”.

And it’s setting the stage for what I believe is one of the biggest opportunities I’ve ever seen.

This is bigger than the gold market. Bigger than the crypto market.

And – potentially – even bigger than the tech market.

Because if it grows at a mind-boggling pace like I believe it will – it will be a core part of every public market sector.

Here is a chart which shows the path we are currently on, including emission levels projected to 2050.

global energy related co2 emissions Do you see how much money is at stake with this agenda? It’s absolutely mind boggling. And you’re not going to see a penny of it until you get on board.

For example…

The European Commission outlined its roadmap for the European Green Deal earlier this year.

  • The total fiscal response by 2050 is estimated to be more than €7 trillion.

The University of Princeton estimated that the United States would require $9 trillion in capital expenditures over the next thirty years to reach net zero emissions.

The dollar figures and sheer speed required to hit carbon net zero are astronomical—almost unfathomable.

These types of opportunities DO NOT COME AROUND OFTEN… IF EVER.

Think I’m exaggerating? Here’s another example…

It took approximately 150 years for the United States to build out its current electricity infrastructure.

To meet the net zero goal, the entire system needs to be overhauled in 20 years.

  • Carbon Net Zero will create the largest government work projects in history—and on a global scale.

As one very connected and influential insider just told me..

“Every single fund manager, investment banker and family office I’ve spoken to wants to jump on board.”

The problem is—they have no idea how.

But I believe I’ve found the single best way to invest in this sector. And I published it to subscribers of my premium research letter, Katusa’s Resource Opportunities.

Because imagine going back in time on the adoption curve and investing in Bitcoin back in 2011… Or buying Amazon in 1995…

This will be the most important commodity of the 21st Century.

Bigger than Gold.

Bigger than Bitcoin.

Bigger than Oil.

But the absolute best part?

It is very early in this game.

I can practically guarantee you will not hear about this opportunity from anyone else. It’s one of the most important pieces of research I have ever produced.

The war-era spending taking place to react to climate change will irreversibly alter the investment landscape.

  • And this is going to be a major investment theme and movement for the next three decades.

There are few, if any, investment angles to play this sector right now, which is in its absolute infancy. Until now.

And we’re unthinkably early.

Bigger than Gold and Bitcoin Combined…

This is a brand-new, little-known commodity sector which, over the last three years, has crushed the Nasdaq, gold, the S&P 500… even Bitcoin.

Take a look…

AssetClassReturns Comparisons You might have heard of Carbon Credits…

Carbon credits are the cornerstone of an incredible financial revolution to help all corporations reduce their cost of capital right now: It’s The Global Race to Net Zero.

Again, not 1 in a million investors knows how to play it.

But as you’re watching this, governments around the world are firing up the money printing presses to react to climate change…

And it will irreversibly alter the investment landscape.

It’s going to make the government’s unprecedented financial response to COVID look like pennies.

Of course, as with any major disruptive shift – especially one of this magnitude – there will be huge winners and losers.

I’ve seen all sorts of sectors, manias and “the next big thing” in my 20 years of investing.

But this could be the biggest of them all.

It’s also the biggest cheque I’m writing, ever.

You can either dottle around in your own echo chamber of misconceived facts and conclusions or open your mind to the beginning of the biggest financial revolution ever.  It’s your future, use it.

And it’s where I’m focusing a significant portion of my liquid net worth over the coming years – starting with right now.


Marin Katusa