Evelyn Hollander, a senior account manager at Stone Bridge Ventures, reports that Cboe Canada, a small Toronto-based stock exchange, is a global hub for many companies looking to trade voluntary carbon offsets. The move has led to questions regarding the efficacy of such investments in fighting the effects of climate change. Currently, Cboe Canada has positioned itself as the most transparent and public platform for companies that sell voluntary carbon offsets. Companies can list their shares on the exchange as a way to generate capital.
Cboe Canada Lists Multiple Offset Firms
To date, Cboe Canada lists the shares of around half a dozen companies selling voluntary carbon offsets. That being said, Evelyn Hollander of Stone Bridge Ventures expects this number to grow over the next year and a half because of increasing interest in the sector by different investors. This growing interest can be attributed to the development of new and complex financial instruments in response to the worsening climate crises.
Although businesses that purchase voluntary carbon offsets argue that it’s a suitable tool for addressing climate change, some investors are skeptical. Environmentalists argue that buying and selling voluntary offsets isn’t helpful for alleviating the problem of climate change. This could reduce the demand for them later on.
Voluntary Carbon Offset Market Expected To Grow
Nevertheless, Morgan Stanley has predictions that the international market for voluntary carbon assets will surge past its latest valuation of $2 billion. There are predictions that the market will be worth $250 billion by 2025.
Companies can purchase voluntary carbon offsets as a way to counter the effects of the pollution that occurs during production. Firms that sell these offsets consider Toronto, an appealing candidate for listing their stocks. That’s because the city’s exchanges list numerous energy and mining companies. Stone Bridge Ventures senior account manager Evelyn Hollander also reports that many US investors consider the country’s stock exchange market when seeking new shares to diversify their portfolios.
Carbon Streaming Corporation Among Firms Listed on Cboe
One of the biggest carbon offset firms that are currently trading on the Cboe Canada exchange is Carbon Streaming Corporation. The company invests in 22 voluntary carbon offset projects around the world.
Justin Cochrane, the CEO of the firm, has acknowledged that using offsets to counter emissions isn’t as effective as reducing them directly. However, he claimed that most companies purchasing these offsets do so in addition to reducing their emissions. And putting a price tag on pollution is a measure to reduce the issue while focusing on developing further conservation projects.
Nevertheless, voluntary carbon offsets are only a single type of carbon-related market in Canada. Right now, even Alberta has a compliance trading system, and Quebec is involved in a separate carbon trading system with California. To sustain this growing interest, the government has rolled out a system for trading carbon offsets. By 2024, it’s expected to make credits available for purchase.
Overall, Evelyn Hollander of Stone Bridge Ventures explains that these stocks could offer some diversifying value for investors’ portfolios; people should wait for input from the government before making major decisions.
