Carbon credits:
The "net" in Net Zero
Using cutting edge technology, Arcmor 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.
— McKinsey
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.
OUR PART
How We Facilitate Net Zero
Arcmor's strategy will see the permanent sequestration of tens of millions of tonnes of carbon from the atmosphere
Our projects increase value to all stakeholders through co-benefits. These co-benefits include improving biodiversity, protecting endangered habitats, and maximising the UN’s Sustainable Development Goals.
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.
WHY NOW?
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.
THE PROBLEM
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 2050.
A successful global transition to renewable energy, electrification, and energy efficiency will still leave us 10 billion tonnes of CO2e per year away from achieving Net Zero. Nature-based carbon projects are the only viable solution to this shortfall.