ERM, a leading sustainability advisory firm, has unveiled its latest a new consulting business designed to assist companies in navigating the realm of carbon credits as they tackle their greenhouse gas emissions and strive for decarbonisation.
The business line, known as ERM Climate Markets, has been launched amid an uptick in demand for carbon offset projects and associated credits, according to ESG Today.
This surge is driven by businesses setting ambitious net-zero targets and turning to offsets to complement their emission reduction efforts or offset hard-to-eliminate emissions.
Moreover, recent developments, such as the SBTi’s indication of allowing carbon credits in net-zero targets to address Scope 3 emissions, further underscore the potential growth of the carbon credit market.
However, despite its rapid expansion, the carbon credit market faces challenges, including the inability of market participants to distinguish between high and low-quality projects due to inadequate or inconsistent data on project effectiveness.
Alex Cox, Head of Climate Markets at ERM, emphasised the pivotal role carbon markets will play in achieving global net-zero goals by 2050. He explained, “Carbon markets will play an increasingly important role in delivering global net zero ambitions by 2050. They also offer significant opportunities to scale finance flows for nature and contribute to sustainable development. However, the market is complex, with increasing stakeholder scrutiny on the quality and impact of investment.”
ERM aims to address these challenges with its Climate Markets initiative, facilitating access to high-quality carbon credit portfolios aligned with decarbonisation efforts. Additionally, the initiative seeks to deliver social, biodiversity, and economic benefits.
The Climate Markets team will collaborate with project developers to provide clients with opportunities for high-quality carbon project development, emphasising positive climate, community, and ecosystem outcomes. Furthermore, clients will benefit from enhanced due diligence to mitigate investment risks.
Tom Reichert, Group CEO at ERM said, “ERM already works with clients at every stage of their decarbonisation journeys and, as carbon credit strategies gain momentum, we are introducing ERM Climate Markets to meet their evolving needs.”
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