The carbon-offset market is becoming more and more important as emissions regulations continue to adapt. After a recent merger, an Australian carbon credit provider, Carbon Planet, is planning on venturing into the public market.
Merging with Carbon Planet was M2M Corporation, a Melbourne-based telecommunications company, who has been looking for larger investments after a lengthy evaluation, according to Ian Clarkson, executive chairman of the company. North Asian partners, including China, will assist Carbon Planet in regional business development.
Carbon Planet provides not only methods, but software that manages and tracks carbon emissions. The credits that the company provides work through the United Nation's Reducing Emissions from Deforestation and Degradation (REDD)— an American company that I recently became familiar with performs a similar service is Tree Banking LLC.
The REDD system works under the voluntary market, however the Australian government is looking at compliance by 2016.
Carbon Planet then sells the credits and the revenue generated is returned to the rainforest owners. According to information presented to Australian brokers last week, the company already has exclusive rights to 25 REDD projects in New Guinea, potentially generating.
Chief executive, Jim Johnson, said that the industry is gaining "significant momentum" with the potential for impressive growth by 2020. He also expected an agreement at Copenhagen, as well as global trends towards emissions regulations would bolster the value of the company.
While the understanding that deforestation contributes to climate change may not be novel, controlling and managing specifically how much is being offset is a new issue for certifications and companies to tackle alike.
Zaher Karp is a freelance writer and editor who has covered renewable energy and clean technology. He has worked to promote and pursue sustainability through a variety of means, including previously working with a green certification and providing editorial support to local nonprofits.
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