Carbon projects tipped to follow renewables path to scale

Corporate Carbon Group’s General Manager, Marc Train, features in NAB Business Research & Insights.

Capturing predictions from several carbon project developers, a recent article by NAB Business Research & Insights suggests the market’s path to scale could mirror the trajectory of renewable energy.

In our contribution, Marc Train, General Manager, Corporate Carbon Group, highlighted the need for a shift in how carbon projects are financed and makes a case for the market evolving in a way that values the revenue from carbon projects as distinct from agricultural revenue or other income streams.

“Ideally, this market develops to a point where banks can take a proper project financing approach involving financing off the back of carbon offtakes rather than taking a balance sheet view, which is where we are today,” Marc said. “This however would require more certainty on methodologies, yields and outcomes.”

Although developers agree that today’s carbon project funding options are not yet operating at institutional scale, the article shows the market is shifting toward more sophisticated financing models and increasing readiness for long-term investment.

Read the full article here.