Environmental attributes can have a low correlation with world equity markets, providing investors with additional portfolio diversification.

Carbon has a high correlation to energy prices, especially natural gas. With energy prices at historical lows, many investors are finding this an opportune time to take a position in this market.

Term offtake (forward purchase agreements) for carbon credits in a pre-compliance market provides investors with upside exposure to future carbon cap & trade regulation with liquidity increasing as covered entities and speculators enter the market.

Project equity investment or co-investment with GCS offers tax equity monetization through a project’s near term net-operating losses (NOLs) from accelerated depreciation (most project CAPEX falls under 5-year MACRS depreciable life). Equity investors can also capture stimulus bill DOE grant funding that covers 30% of up-front project CAPEX, and DOE Energy Loan Guarantees that can lower project cost of debt.

Global Climate Strategies identifies and develops carbon offset projects for carbon compliance and voluntary markets including CDM, VCS, and CAR. Please contact us for an investment prospectus.