Why Invest.
Demand For Carbon Credits Expected To Grow By 15x by 2030
A dramatic change by governments and corporates is ongoing to address climate change. Energy transitions globally are underway in a move to address environmental challenges and align with the Paris Agreement on limiting temperature rise to 1.5 degrees. A total of 127 countries, 823 cities, and over 2,000 major corporations (ex China) have adopted carbon neutral targets and projected demand of carbon credits is vastly outpacing availability of supply.
The Net Zero Asset Managers Initiative covering 128 asset managers, including BlackRock, managing $43 trillion of assets are targeting net zero emissions by 2050 and 2030 interim targets across all their investment holdings. Industry experts forecast Compliance (regulated) carbon credit markets to increase 10-20x by 2030 to meet the Paris Agreement. The current market of Compliance traded carbon credits is US$260 billion, up +450% since 2017 and compliance carbon credits are trading at all-time highs, up +110% over the last twelve months. Moreover, expectations for the Voluntary market of carbon credits are to reach upward of $50 billion (100x increase) by 2030, where spot prices have increased over 100% year to date.
Higher carbon prices are predicted in order to meet carbon neutral targets.
Low Risk And Proven Royalty and Streaming Model
The Company intends to create a diversified portfolio of high-quality carbon credit royalties and streams. CNR provides an upfront payment to Carbon Offset Project Owners to acquire the right to purchase carbon credits at a fixed price or fixed percentage of spot below market that each project generates. Royalty and streaming are a highly proven financing model (eg mining). Key advantages for CNR include:
- no operational responsibility
- potential for projects to generate increasing carbon credits for 50+ years
- near term cash flow where most projects typically generate carbon credits in two years generating cash flow that increases over time as projects mature
- low jurisdictional risk as credits are issued directly from independent verification organizations such as VERRA and Gold Standard usually outside of project location
- low permitting risk as projects have a significant positive impact on the environment and communities
Experienced Team with Proven Global Track Record
CNR is led by royalty sector specialists with a proven track record and extensive geographic experience. All founding members each bring decades of global commodity and developing market experience in key regions where reforestation and natural climate solutions projects are most prevalent. Selected track record of the founding members include a 2,500% increase in share price of Nova Royalty achieved from first private financing with 9 transactions completed and 20 royalties. acquired and a 1,400% increase in share price in Metalla Royalty achieved from first public financing with industry leading 27 transactions completed and 70 royalties acquired.
Direct Leveraged Exposure To The Voluntary and Compliance Carbon Markets
Regions with a carbon footprint greater than the emissions of the US, and companies with a combined revenue of over $11.4 trillion (equivalent to more than half of the US GDP), are now pursuing net-zero emissions by the end of the century. Such force and momentum are helping to drive the once-in-a-generation growth in carbon credit markets. CNR is an alternative ESG investment that is non-correlated to commodity markets. CNR invests in streams and royalties of carbon credits, nature-based solutions, and carbon markets to provide direct leveraged exposure to the underlying carbon markets through long-life carbon credit contracts.