CPP Investments Insights Institute: Accelerated Transition to Net-Zero Economy Leads to Increased Demand for Carbon Credits
- Inaugural report from CPP Investments Insights Institute finds demand for high-quality, verifiable carbon credits will rise faster than supply
- CPP Investments sets precedent for partnerships between private capital and non-profit organizations to generate high-quality carbon credits
TORONTO, March 14, 2022 /CNW/ - The surge in global companies seeking to achieve carbon neutrality is leading to higher demand for nature-based climate solutions and carbon credits. This trend is set to drive new opportunities for investors, companies seeking to address greenhouse gas emissions, and projects around the world that pull greenhouse gases out of the atmosphere or keep emissions from being released.
The inaugural report from CPP Investments Insights Institute entitled "Investing in the potential of carbon credits," explores how carbon credit markets are strengthening, and the data and convictions that are leading to further investment in these nascent markets. Over time, robust carbon markets will offer investors unique ways to earn attractive risk-adjusted returns while funding nature-based mitigants to climate change. The report showcases one example of the innovative tools being sought by investors to realize these opportunities.
CPP Investments has established a unique partnership called "Accelerate Nature" with Conservation International, a non-profit, non-governmental organization and globally recognized leader in nature-based climate solutions. This partnership is expected to provide strong returns and further enable Conservation International to deliver benefits to its stakeholders, including:
- creating long-term value by establishing partnerships with Indigenous communities to keep carbon-rich tropical forests healthy;
- supporting the development of high-quality projects that reduce and remove global carbon emissions and preserve biodiversity; and
- enabling the private sector to purchase certified carbon credits generated by each project that support the economic development of Indigenous communities.
"The partnership between CPP investments and Conservation International is a prototype for investors seeking opportunities presented by the whole economy transition to net zero," said Deborah Orida, Global Head of Real Assets & Chief Sustainability Officer. "Through initiatives pioneered by Accelerate Nature, we will help protect ecosystems and their communities, while we earn attractive risk-adjusted returns in the best interests of our contributors and beneficiaries."
The CPP Investments Insights Institute will develop and unearth perspectives on today's global challenges and apply them both to investment activities and towards global efforts to manage disruption. Three main areas of focus for the Institute are: climate change, technology disruption and stakeholder capitalism. More information on the Institute and the new report can be found on cppinvestments.com/insights-institute.
About the CPP Investments Insights Institute
The CPP Investments Insights Institute's mission is to create enduring value by using global investing expertise, partnerships and convening power to advance how the global investment community addresses climate change, technology disruption and evolving stakeholder expectations. Our vision is to have a prosperous investment ecosystem that delivers financially sustainable returns while addressing the biggest challenges of our time.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At December 31, 2021, the Fund totalled C$550.4 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.
SOURCE Canada Pension Plan Investment Board
Steve McCool, T: +44 20 3947 3002, [email protected]
Share this article