This is however an
unlikely scenario. Global warming is high on everybody’s
political agenda and is not a problem that is going to disappear
without concerted action over a sustained period involving the
entire international community. With the European Union resisting
demands for more generous allowances to be issued, the value
of carbon credits can only increase and that means those who
invest now are likely to find themselves in an increasingly
commanding position.
Investors can purchase
carbon credits either on a “pre verified” or a “buy
and hold” basis. A pre verified credit will mean that
the project being invested in has not yet been verified and
cannot be sold on until verification takes place. For this reason
pre verified credits are generally available to investors at
a lower price. It is important of course to ensure the terms
of purchase are such that funds will be returned if accreditation
is not achieved within an agreed time period.
“Buy and hold”
credits on the other hand are already verified and therefore
come with a lower risk attached, but naturally at a higher price.
Some investors have
also directly leased rainforest for a set period, which has
the dual benefit of doing something very positive and specific
for the environment as well as providing an unusually generous
return.
Unfortunately
throughout the credits market there are a number of scams in
operation and it is therefore essential to seek out some good
advice from a reliable source before even thinking of investing
any capital. Learn more about carbon credits at the above websites.