Funding a Better
Using cutting edge technology, Arcmor Ventures takes a science-based approach to investing in nature-based carbon projects, delivering the best outcomes for investors, people and the planet.
There is no one solution to solving the climate crisis and we all have to play our part. This is ours. Connecting capital to conservation.
The transformation of the global economy needed to achieve net-zero emissions by 2050 would be universal and significant, requiring $9.2 trillion in annual average spending on physical assets, $3.5 trillion more than today.
Overcoming these significant hurdles will take time. Until the infrastructure and technology is in place, nature-based carbon offsetting is a critical bridge to keep us on track for Net Zero by 2050
Arcmor is a team of carbon market experts from across policy, science, finance, asset management, and law. Our in-depth experience in large scale agribusiness and infrastructure investing allows us to manage our project developers, ensuring on time, on budget production of the highest quality carbon credits and offsets for the benefit of both investors and the environment.
Our nature-based carbon sequestration projects rebalance the environment, enhance natural capital, regenerate soil carbon, encourage natural diversity, and generate attractive uncorrelated financial returns for investors.
How We Facilitate Net Zero
Arcmor's strategy will see the permanent sequestration of tens of millions of tonnes of carbon from the atmosphere
Not All Carbon Credits are Created Equal
There is currently a very significant difference between the market prices of low quality carbon credits and high quality carbon credits. We believe that this divergence will widen over the coming years. The Arcmor team includes carbon credit trading and carbon credit rating specialists who understand this price divergence very well.
The quantum of this price divergence is directly related to the extent to which carbon credits generate co-benefits. These co-benefits include improving biodiversity and maximising the UN’s Sustainable Development Goals. We know that industry understands the increasing scrutiny its net zero strategies are being placed under from shareholders an others and that while cheap low quality carbon credits that offer few if any co-benefits might have been acceptable a decade ago, the market has changed radically and buyers who seek to greenwash their activities are rapidly called out by shareholders and others.
Local lives are greatly improved by receiving salaries for planting trees, profit share from the sale of carbon credits and by the benefits of more fertile agricultural land, increased biodiversity and access to education, health services, clean drinking water and food security. Co-benefits are therefore an insurance policy to ensure the projects remain in place sequestering carbon permanently.
This is why it is more important than ever to understand the complexities of the carbon credit market. Arcmor has the expertise, and is well-positioned to generate superior financial returns for its partners by creating high-quality carbon credits from projects whose endurance is underpinned by co-benefits that align with the interests of local communities and thereby protect the long-term health viability of each project that we finance.
Carbon markets are rapidly phasing out the availability of renewable energy carbon credits, primarily due to their lack of additionality. In other words, renewable energy infrastructure is now sufficiently competitive with fossil fuel infrastructure that it would be developed regardless of carbon credit funded subsidies. Man-made carbon sequestration is still at a very early stage and remains limited in its ability to scale cost-effectively. This leaves nature-based carbon credits as the only proven mechanism that can sequester sufficient carbon for corporates to offset their emissions. The land available for such projects is finite, which coupled with the ever-growing pressure on companies to commit to net zero upholds the forecasts of most reputable sources that prices will significantly increase as demand outstrips all possible supply. These projects can take 5 years to come online however, so we best getting cracking.
Now is the time to invest in nature, to provide a bridge over the next 30 years to get us to 2050 where we can only hope technology and renewable infrastructure has sufficiently improved that most businesses are able to operate at net zero.
Carbon markets are rapidly phasing out the availability of renewable energy carbon credits
We are a proud member of the Natural Climate Solutions Alliance convened by the World Economic Forum and the World Business Council for Sustainable Development.
How Fast the Carbon Clock is Ticking
The MCC Carbon Clock shows how much CO2 can be released into the atmosphere to limit global warming to a maximum of 1.5°C and 2°C, respectively. With just one click, you can compare the estimates for both temperature targets and see how much time is left in each scenario.
Arcmor's Carbon Core One seeks to generate superior uncorrelated risk-adjusted returns by identifying and investing in the development of nature-based carbon sequestration projects, and delivering the resulting high-quality carbon credits to corporate and institutional buyers.
For many businesses around the world, even those with Net Zero strategies, the technology does not yet exist to achieve net zero. Nature based carbon offsetting is the currently the only way to achieve net zero at scale.
HIGH-QUALITY CARBON CREDITS
Carbon Core One
Pressure is building on corporates from shareholders, policymakers, activists, and the public to demonstrate and implement viable net zero strategies. Even for the most ambitious company, carbon offsetting will almost certainly be required in any realistic net zero strategy.
The quality of carbon credits is being scrutinised like never before. Green washing is no longer acceptable and corporate shareholders now demand transparency regarding the nature, source, and quality of carbon offsets. They increasingly expect to see positive societal and environmental benefits alongside carbon sequestration projects, and the corporate world now values high quality carbon credits and offsets at a premium.
Getting the world to net zero is much easier said than done.
We need to be realistic about transitioning 150 years of fossil fuel infrastructure, from a fuel-intensive economy to a mineral intensive one. This will require:
$9.2t in renewable infrastructure investment annually until 2050
Significant technological advances in clean energy storage and transportation
Cost-effective alternatives to nitrogen-based fertilizers
Overcoming these significant hurdles will take time. Until the infrastructure and technology is in place, nature-based carbon offsetting is a critical bridge to keep us on track for Net Zero by 2065.