• Cory Cleveland

CAPITALIZING ON CARBON CREDITS w. JUSTIN COCHRANE EP. 107


Justin Cochrane at The Insider's Guide to Finance
Justin dives into the Carbon royalty and streaming model.


Today, you’ll hear from Justin Cochrane, Director and CEO of Carbon Streaming Corp. Carbon Streaming invests in carbon offset projects in return for a stream of future carbon credits.


Justin has built his career on financing companies through the streaming and royalty model. Now, he is applying the model it to the world of carbon credits. He and his team have raised over $140 million to invest in carbon projects that will yield carbon credits in the future.


As we already know, climate change is widespread, rapid, and intensifying. There is significant and immediate capital needed to achieve climate goals. One of the ways to do this is by putting a price on carbon emissions and incentivizing offeseting emissions with carbon credits. Individuals, corporations, and institutions use them to offset their emissions.

Putting a price on carbon is the future. If we are serious about our Paris Agreement goals and limiting global warming to one and a half, two degrees, there is broad recognition across the investment community now that putting a price on carbon is the only way to get there. — Justin Cochrane [0:08:06]

Carbon credits are a key instrument needed in order for corporations to achieve carbon neutral and net-zero climate goals.

It’s [about] creating this common set of principles and an agreed approach [so that] buyers can have confidence that they are buying something that has been independently reviewed and is valuable all over the world because the standard would be the same. — Justin Cochrane [0:25:06]


KEY POINTS FROM THIS EPISODE:


  • What sparked his interest in the royalty and streaming model and, carbon credits.

  • Addressing the lack of familiarity with carbon markets in the investment community.

  • A look at Justin and Carbon Streaming’s strategic approach to the ‘educational pitch’.

  • Why financing a company like this is not an event; it’s a process.

  • A better understanding of the carbon industry.

  • The difference between the voluntary and regulated markets.

  • Investment opportunities presented by the Pan-Canadian Approach to Pricing Carbon Pollution.

  • Justin walks us through the process of verifying carbon credits via independent audits.

  • High cost technology-based solutions versus lower-cost nature-based solutions.

  • How large companies can balance their portfolio of carbon credits

  • Why Justin believes companies will offer consumers the option to buy carbon-neutral goods.

  • Ways in which the pandemic increased public awareness of climate change.

  • The staggering amount of capital needed to achieve climate goals.

  • Factoring for risk when it comes to investing in carbon projects.


LINKS MENTIONED IN TODAY'S EPISODE:

Justin Cochrane on LinkedIn

Justin Cochrane on Twitter

Carbon Streaming

EU Emissions Trading System (EU ETS)

Update to the Pan-Canadian Approach to Carbon Pollution Pricing 2023-2030

Verra

The Snowball: Warren Buffett and the Business of Life

Insider’s Guide to Finance on LinkedIn


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Copyright © 2021 Creative Return

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