Eddie Listorti Discusses How High-quality Carbon Credits Have Become a Must-have Asset Class for Many Investors

"Going green" has been a catchphrase for the last two decades, but it has been starting to come into focus over the last few years. Today, ESG investments aren't just an option for many investors; they are essential, according to Founding Partner and CEO of Viridios Group, Eddie Listorti.

Through Environmental, Social, and Governance (ESG) investing, individuals are paying more attention to where they are putting their money based on whether companies are making a significant effort to give back to the world in positive ways, aside from just corporate profits.

As such, high-quality carbon credits have become a must-have asset class for many investors. Below are some reasons why this is the case.

Carbon Credits Are Essential for Net Zero

The world is working hard to achieve net zero emissions. While the benchmark date most often cited by countries is 2050, the work needed to get there is well underway.

Many companies and organizations are able to reduce their carbon emissions directly by using alternative energy sources to power their operations. For others, it's a much more uphill climb.

This is where carbon credits come in. These companies and organizations that aren't able to directly reduce their emissions -- or aren't able to do so as quickly as necessary -- can purchase carbon offset credits, which then are invested in eco-friendly projects around the world.

These carbon credits are already integral to net zero emissions and will become even more critical in the next few years. Predictions are that the market could grow 30 times by 2030 and 100 times by 2050.

Carbon Credits Are Becoming More Regulated

Carbon credits used to be a speculative investment, but they are no longer that. As they are becoming increasingly crucial in benefitting climate change, carbon credits are becoming more regulated.

Verification bodies are ensuring that the carbon credits offered are legitimate and not being taken advantage of. Standards for carbon credits are also being set, ensuring all are on an even playing field.

From an investment standpoint, this makes carbon credits an asset class that's much more transparent and a sure thing rather than a shot in the dark. The SEC is even stepping up its efforts to regulate carbon credits.

Carbon Credits are Essential in All Markets

Eddie Listori explains that carbon credits are ever-present in all markets. In other words, there isn't a business sector or a geographical region that won't integrate carbon credits in some way.

As mentioned, decarbonizing to the extent that countries have mandated over the next 30 years will only be possible through the use of carbon credits in some fashion. Everything from large manufacturing companies to small retail chains will be playing a part in reducing carbon emissions in some form.

Carbon credits will always be a central part of meeting net zero emissions goals, and as such, they are proving to be a high-quality asset class that investors can't ignore.

About Eddie Listorti

Eddie Listorti is the Founding Partner and CEO of Viridios Group. He has a proven track record with 30 years in business and banking. His experience includes managing teams of over 2,000 people and annual revenues exceeding AUD 2 billion. Mr. Listorti has held board positions in industry bodies and joint venture partnerships.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.