With the urgency of climate change, actors in the financial
sector realise the crucial role they can play in the transition to
a sustainable economy. This is reflected in the number of new
sustainable products aligned with the related demand from
investors. The investment fund industry, increasingly considering
sustainable issues, is also turning to innovative solutions to
finance decarbonisation, including by integrating carbon credits
into their investment strategy and structure.
Carbon credits are a market-based system of carbon offsets,
arising from activities that compensate for the emission of carbon
dioxide or greenhouse gas emissions, by providing for an emission
reduction, avoidance, or sequestration. Carbon credits are
generated by verified projects that follow international standards
and are subject to a verification system.
