New Investments Portal Raises Carbon Credits Alert to Code
Invezz, a UK-based digital media company, released today REDD Carbon Credits (reddcarboncredits.co.uk). The website is a new informational portal, which raises awareness among eco-responsible investors about the benefits and challenges of placing their money into REDD carbon offsets. According to the vision of the boutique media company, its latest green investments portal will become a go-to place on the Web where executives, NGOs and individuals can seek and find current data on the state of Reducing Emissions from Deforestation and Forest Degradation (REDD) initiatives.
REDD carbon offsets typically earn carbon credits based on the amount of CO2 emissions they capture and store. They offer opportunities to both businesses and individuals who wish to neutralize their carbon footprint by purchasing already produced carbon credits or by investing in REDD initiatives during their development stages. According to Bloomberg New Energy Finance, REDD projects held 29%, or almost 1/3, of the overall transaction volume of verified carbon standard (VCS) carbon credits on the voluntary carbon market in 2010.
As the REDD Carbon Credits portal points out, REDD as a concept and, subsequently, as a powerful investment market vehicle was first launched under the patronage of the UN in 2005, but it wasn't until the 2010 Cancun Climate Summit that REDD was officially validated by the international community. Moreover, developed countries pledged to invest $30 billion between 2010 and 2012 in REDD initiatives.
The UN describes REDD as "a cutting-edge forestry initiative that aims at tipping the economic balance in favour of sustainable management of forests." Considering the fact that deforestation of the tropics is thought to be causing as much as 20 percent of all greenhouse gas (GHG) emissions caused by human activities, REDD carbon offsets have the ambitious goal of reducing these emissions from the atmosphere while sustaining the biodiversity and contributing to the development of local communities.
Not surprisingly, these unique characteristics of REDD carbon offsets make them among the most attractive investment options in the sustainable investment space. A report by Ecosystem Markets surveyed 141 corporations about their primary motivation behind investing in forestry offsets. The overwhelming majority of respondents emphasized the ecological benefits of the REDD carbon offsets and their positive effect on indigenous communities.
The REDD Carbon Credits portal also highlights some of the issues with REDD carbon offsets that investors need to take into account: unlike other green investments, REDD projects require higher initial investment capital; there are still challenges with clarifying the legal framework of these projects; there is a reasonable concern that, sometimes, while a REDD project prevents deforestation in one area, forests in unprotected neighboring areas might be damaged. In the last case, the validity of the REDD project as a carbon offsetting process can be seriously questioned, which might place its certification in jeopardy.
As the world's population increases in numbers and global industrialization reaches new peaks, the international demand for wood and wood-based products will constantly be on the rise. Investors in REDD carbon offsets can stay ahead of the curve by staying informed about the ever-changing REDD market. This way, they will be able to take definitive actions while making sure that the return of their investment, along with the environmental and social benefits it promotes, will be solid and long-lasting.
To learn more about the latest REDD carbon offset developments and trends, visit reddcarboncredits.co.uk
Invezz is a UK-based boutique digital media company providing original and reliable up-to-date information in the area of green investments to large investment company decision makers, NGOs and to eco-minded individuals.
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