Public markets are taking part in scaling carbon credits and climate change mitigation. The London Stock Exchange (LSE) welcomes the first fund called Foresight Sustainable Forestry Company which will use its new market framework for carbon credits.
That means the fund will be the first to take part in the new Voluntary carbon market (VCM) platform of London Stock Exchange. Foresight Sustainable Forestry Company is a company that invests in developing land for commercial forests, offering direct and liquid access to UK forestry and afforestation projects. Thus it qualifies for exposure to carbon credits.
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The LSE is the first exchange that uses a public carbon market framework to drive funding into climate mitigation projects. The VCM was created by LSE in 2022 to allow access for investors and companies who want to buy carbon credits to offset emissions.
The Exchange’s issuance of its first Voluntary carbon market designation to Foresight Sustainable Forestry Company is a key milestone that unlocks the potential of financial markets to drive climate change investments.
The London Stock Exchange’s Voluntary Carbon Market helps investors and market participants to identify funds that have committed to invest in carbon credit projects that meet internationally recognized standards.
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Individuals and companies can usually get carbon credits through intermediaries like brokers but some of them find it hard to provide more information about the project and its developers. The brokers may also be struggling to identify certain projects that suit clients’ requirements and preferences.
The LSE VCM platform provides transparency through disclosure and gives entities and individuals a means to raise funds for projects that cut GHG emissions. Instead of cash dividends for their investments, investors and firms can get carbon credits and can use them for offsetting purposes and meeting net zero targets.