Carbon credits

Carbon Credits - Green Investments

A carbon credit is a certificate or permit which represents the right to emit one tonne of carbon dioxide (CO2) and they can be traded for money. Carbon credits can be sold and traded legitimately and there are many reputable firms operating in the sector.

There are two categories of carbon credits: voluntary emission reductions (VERs) and certified emission reductions (CERs).

Method

  • Investors are usually cold called by salespeople promoting carbon credits, but contact can also come by email, post, word of mouth or at a seminar or exhibition. You may be offered carbon credit certificates, or an opportunity to invest directly in a ’green‘ scheme or project that generates carbon credits as a return on investment.
  • The caller may claim carbon credits are ‘the new big thing’ in commodity trading, industries now have to off-set their emissions, the government is focusing on green developments or that it is an ever growing market.
  • You could lose money on your investment by not being able to sell, or at least get a competitive rate, when trading a small volume of carbon credits.

Advice

  • Do not respond to callers trying to sell you investments. Simply hang up the telephone.
  • Don’t let the company pressure you into buying because they say the offer won’t be there tomorrow. Hang up and take a day or two to consider your options.
  • Exercise considerable caution when investing your money especially in land.
  • Always seek independent / legal advice before committing to any investment.
  • If a plot of land is offered to you as an investment, always check with the local planning authority before parting with your money. The land may be Green Belt or other locations where it is most unlikely that you would get planning permission for a house.