Five Top Ways to Invest in Carbon Heading into 2023

With global leaders looking to reduce the world’s carbon footprint, “building enough capacity will take decades. That’s one reason why voluntary carbon credit markets are expected to play an increasingly key role to help offset the impact of greenhouse gas (GHG) emissions,” says Base Carbon Inc. (NEO BCBN) (OTCQX: BCBNF). “One credit offsets one tonne of carbon dioxide. A 2021 study by Trove Research concluded that voluntary credits will be an essential lever for corporations to offset emissions. The study forecasts that the cost per credit could exceed US$50 by 2040 due to rising demand, up from a range of US$5 to US$20 today.” In addition to Base Carbon Inc., other companies and ETFs with exposure to carbon credits include Occidental Petroleum Corporation (NYSE: OXY), Brookfield Renewable Partners LP (NYSE: BEP) (TSX: BEP), KraneShares Global Carbon Strategy ETF (NYSE: KRBN), and Horizons Carbon Credits ETF (TSX: CARB).

Look at Base Carbon Inc. (NEO: BCBN) (OTCQX: BCBNF), For Example

Base Carbon Inc. entered a letter of intent (“LOI”) with the Danish Red Cross to scope and assess “Blue Carbon” reduction projects in Southeast Asia.


- Base Carbon signs Letter of Intent with Danish Red Cross to develop blue carbon projects in Southeast Asia

- Scope includes mangrove projects in SE Asia, an initial project in Philippines is in the scoping phase

- Additional members of the Red Cross Movement are anticipated to be involved in the partnership, with potential to expand

- Terms of the agreement include a 24-month term and a right of first refusal on subsequent projects

- 83% of the global carbon cycle is circulated through the ocean and coastal habitats cover less than 2% of the total ocean area accounting for 50% of the total carbon sequestered in ocean sediments

Base Carbon Inc., through its subsidiary Base Carbon Capital Partners Corp, has entered into a letter of intent with the Danish Red Cross to scope and assess — and potentially develop — one or more mangrove-related carbon reduction projects in Southeast Asia which are anticipated to follow VERRA “Tidal Wetland and Seagrass”, methodology.

The parties have committed to work together until at least October 2024 with respect to such potential projects in the region. Base Carbon will have a right of first refusal to participate in additional carbon reduction project pursued by the Danish Red Cross.

The Danish Red Cross are recognized innovators in designing investment and underwriting structures related to the commercialization of carbon, climate and social benefit projects. Potential projects related to the prospective partnership will be jointly funded by the Danish Red Cross including other Red Cross affiliated entities. The parties anticipate that any project will be insured by Dunant Re IC Limited, an insurance company established by the Danish Red Cross and Replexus. The Company anticipates providing regular updates as the parties work together.

“This partnership is consistent with Base Carbon’s mandate to work with leading organizations on carbon projects with strong economics and social benefit additionalities. The Red Cross Movement, with its scale and breadth is ideally suited to execute carbon reduction and removal projects. Base will invest and contribute technology to materialize these projects.” stated Philip Hardwick, COO of Base Carbon.

Blue Carbon and Mangrove Carbon Projects

Blue carbon refers to the carbon captured by ocean and coastal habitats such as seagrass meadows, whale habitats and mangroves, which act as robust sinks by sequestering and storing large amounts of carbon in both the plants and sediments below. By the numbers, 83% of the global carbon cycle is circulated through the ocean and coastal habitats cover less than 2% of the total ocean area — but account for 50% of the total carbon sequestered in ocean sediments.

By comparison, these habitats store two to four times more carbon than terrestrial forests making them a key component of nature-based solutions to climate change and effecting in helping corporations achieve their net zero commitments. In addition to acting as powerful carbon sequestration properties, mangrove projects mitigate the impacts of natural disasters, prevent erosion, and help reestablish fish and other marine life habitats.

In addition to acting as natural carbon capture and sequestration (CCS) agents, mangroves also serve as a natural barrier against the effects of hurricanes and as habitats for species that are crucial to the ecological and economic health of coastal communities. Despite their numerous benefits, these ecosystems are experiencing rapid degradation from anthropogenic activities and climate change at a worrying rate, transforming their impressive capture capabilities into climate liabilities: When mangrove forests are cleared and destroyed, they release massive amounts of carbon dioxide into the atmosphere.

Carbon Sequestration and Socio-Economic Benefits of the Projects

Beyond carbon storage benefits, ecological restoration projects improve ecosystem services and enhance biodiversity increase. These initiatives benefit local communities' climate resilience, improve soil for stronger food systems and help restore microbial relationships to protect human health.

Southeast Asia has one of the largest and most diverse mangroves habitats, but its continuing deforestation and degradation of natural forest areas is creating a complex situation with both local and global ramifications. The Red Cross will help implement social development programs for improving the quality of life of coastal communities, who will be involved in all stages of the projects and will be trained to carry out the restoration work.

The Red Cross will help ensure the long-term sustainability of these social impacts by promoting the interrelated aspects that mangroves can bring to local communities: source of income and food for local populations, breeding grounds to support fisheries, protection from natural calamities, improvement of the water quality, promotion of ethical tourism, etc. During a recent due diligence visit, Base Carbon members engaged in consultation meetings with local people and evaluated the condition of the damaged mangroves within the project's targeted area.

Other related developments from around the markets include:

Occidental Petroleum Corporation came to an agreement to sell 400K tonnes of emissions-offsetting carbon removal credits from its announced Direct Air Capture project to aerospace company Airbus. "Direct Air Capture will be a scalable, practical solution that aerospace pioneers like Airbus can integrate into their decarbonization roadmaps to contribute to climate action," said Michael Avery, CEO of Oxy Low Carbon Ventures subsidiary 1PointFive. Oxy anticipates the direct air capture facility in the Permian Basin will commence construction in the second half of 2022. The companies have not disclosed the price of the credits. Berkshire Hathaway has been acquiring shares of Occidental.

Brookfield Renewable Partners reported financial results for the three and nine months ended September 30, 2022. "We had another successful quarter, as we delivered excellent financial results and executed on several large-scale transactions from our robust pipeline of renewable and energy transition growth opportunities," said Connor Teskey, CEO of Brookfield Renewable. "We are thrilled to be putting more dollars to work in our U.S. renewables business and one of the world's largest nuclear power generation services businesses. We continue to believe our clean energy platform and access to capital positions us as a key facilitator of the global transition to net zero."

KraneShares Global Carbon Strategy ETF is benchmarked to IHS Markit’s Global Carbon Index, which offers broad coverage of cap-and-trade carbon allowances by tracking the most traded carbon credit futures contracts. The index introduces a new measure for hedging risk and going long the price of carbon while supporting responsible investing. Currently, the index covers the major European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA), the Regional Greenhouse Gas Initiative (RGGI), and United Kingdom Allowances (UKA).

Horizons Carbon Credits ETF is Canada’s first ETF that provides exposure to carbon credits through futures contracts or derivative instruments. As noted by Horizons ETFs, “Carbon credits can potentially benefit from increased demand to meet carbon credit allowances.” The Horizons Carbon Credits ETF, which trades on the Toronto Stock Exchange under the ticker CARB, will give investors exposure to this asset class in one ETF that will invest in carbon credit futures of developed markets that offer them.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Base Carbon Inc. by Base Carbon Inc. We own ZERO shares of Base Carbon Inc. Please click here for full disclaimer.


Ty Hoffer
Winning Media
[email protected]