TORONTO – (COMMERCIAL THREAD) – Carbon Streaming Corporation (NEO: NETZ) (FSE: M2Q) (“Carbon diffusion“or the”Society“) is pleased to comment on the existing carbon stream investments in our portfolio and the strong demand and price escalation in voluntary carbon markets for REDD + carbon credits (Reducing Emissions from Deforestation and Deforestation of Forests) .In addition, the Society would like to congratulate the nearly 200 countries that gathered for the 26e United Nations Conference of the Parties on Climate Change (“COP26”) Which has reinforced a global commitment to adaptation, mitigation, financial mobility and collaboration, all key actions in the fight against climate change.
Business highlights
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Carbon Streaming expects to receive up to 7 million REDD + carbon credits recorded by Verra during the first half of 2022 (“1 hour 22 minutes“) from our existing investments in the flow of carbon credits into the Rimba Raya and Cerrado Biome projects.
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The Company has experienced strong demand at premium prices for the credits it expects to receive in 1H22.
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Vintage REDD + 2021 carbon credits are currently trading for an average of $ 13.72 / credit (as seen at www.carboncredits.com). The price of REDD + credits has approximately doubled since Carbon Streaming invested in the Rimba Raya and Cerrado Biome projects.
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The prices of REDD + carbon credits are rising in a growing market. According to Forest Trends’ EcoSystem Marketplace initiative, REDD + credit transactions increased 280% between September 2020 and September 2021. This year, the voluntary carbon credit market exceeded US $ 1 billion as of November 9, 2021.
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Carbon credits with co-benefits such as supporting community well-being and biodiversity exemplified by our project flows at Rimba Raya and Cerrado Biome command higher market prices for carbon credits than these projects. produce.
Highlights of COP26:
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After 6 years, agreement was reached on Article 6 of the Paris Agreement, the rules governing world trade in offsets. This should bring more transparency, rigor and buyer confidence to voluntary carbon markets.
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More than 100 countries have signed a non-binding pact to end deforestation by 2030.
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A declaration was signed by 23 parties on International Aviation Climate Ambition aiming to ensure maximum effectiveness of CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).
“Together with the global discussions on climate change at COP26, the significant increase in prices and the exponential growth of voluntary carbon markets, we are seeing an incredibly strong interest in our portfolio of high quality nature-based carbon offsets.” , said Justin Cochrane. , CEO of Carbon Streaming. “It is important to remind investors that we anticipate issuing a maximum of 7 million REDD + credits in the first half of 2022 through our current investments in the carbon credit stream.
Mr Cochrane continued, “With current prices in the range of $ 13 to $ 14 / credit for REDD + carbon credits and the strong upward price momentum that we are seeing, Carbon Streaming expects that the credits issued within the framework of these flows benefit from an increase in prices and demand which should, in turn, generate substantial cash flows for the Company and our strategic partners.
About Carbon Streaming Corporation
Carbon Streaming is a unique ESG-based investment vehicle providing investors with exposure to carbon credits, a key instrument used by governments and businesses to achieve their carbon neutral and net zero climate goals. Our business model is focused on the acquisition, management and growth of a portfolio of high quality and diversified investments in projects and / or companies that generate or actively participate, directly or indirectly, in voluntary carbon credits. and / or compliant.
The Company invests capital through carbon credit flow agreements with developers and project owners to accelerate the creation of carbon offsets projects by bringing capital to projects that might otherwise go undeveloped. Many of these projects will have important social and economic co-benefits in addition to their potential to reduce or eliminate carbon.
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Opinion
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Caution regarding forward-looking information
This press release contains certain forward-looking statements and information (collectively, “forward-looking information”) within the meaning of applicable securities laws. All statements, other than statements of historical fact, that deal with activities, events or developments that the Company believes, expects or anticipates will occur or may occur in the future (including, without limit, statements and figures regarding the timing and estimation of carbon credit generation from the Company’s existing investments; current and forecast carbon prices; expected cash flows from carbon flow investments of the Company; the additional value of carbon credits with co-benefits; the expected benefits of the Section 6 agreement; and statements regarding financial futures) are forward-looking information. This forward-looking information is based on the Company’s current expectations or beliefs on the basis of information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties which may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, it there can be no assurance that they will have the expected consequences or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to: general economic, market and business conditions and other risks disclosed under “Risk Factors” and elsewhere in the Company’s Annual Information Form dated September 27, 2021 filed on SEDAR at www.sedar.com.
Any forward-looking information is only valid as of the date on which it is made and, except as required by applicable securities laws, the Company disclaims any intention or obligation to update any forward-looking information, whether at the following new information, events or future or other results. Although the Company believes that the assumptions inherent in forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and, therefore, one should not place undue reliance on such statements due to the uncertainty inherent in those statements. -this.
