ESG & Investing
Andurand Says Brace for Splintering in Carbon Offsets Market
- Hedge fund’s climate-research head sees tense period ahead
- Voluntary offset market remains in a ‘state of flux’
A forest of mangrove trees in Bali, Indonesia. Earlier this year, carbon credit exports from Indonesia were frozen amid regulatory uncertainty.
Photographer: Dimas Ardian/Bloomberg
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Andurand Capital Management LLP said tensions building in the voluntary carbon offsets market between governments and private actors are putting investors at risk.
It’s currently unclear how much of the carbon market governments are likely to claim for their own use and how robust the account-keeping will be. Until norms are established, investors are facing a market in limbo, according to Mark Lewis, head of climate research at the commodities focused hedge-fund manager.