In recent years, the market for carbon offsets has experienced significant growth as more companies set net zero ambitions and seek to balance their challenging emissions reduction efforts with the purchase of high-quality carbon credits. To meet this demand, sustainability advisory firm ERM has announced the launch of ERM Climate Markets, a new business line focused on assisting companies in investing in carbon credits and achieving decarbonization goals.
ERM Climate Markets aims to provide companies and investors with access to high-quality carbon credit portfolios aligned with their decarbonization actions. The new business line will also work closely with project developers to provide clients with opportunities for high-quality carbon projects that deliver positive climate, community, and ecosystem outcomes. Additionally, the Climate Markets team will offer enhanced due diligence to help clients de-risk their investments.
Despite the growing market for carbon offsets, there are challenges present that must be addressed. One such challenge is difficulty for market participants to distinguish between high and low-quality projects, as well as insufficient data to assess project effectiveness. Alex Cox, Head of Climate Markets at ERM, emphasized the importance of carbon markets in achieving global net zero goals by 2050 while also acknowledging the need for increased scrutiny on the quality and impact of investments.
ERM already works with clients at every stage of their decarbonization journeys and sees the launch of ERM Climate Markets as a way to further support their efforts in achieving sustainability goals. With the growing momentum behind carbon credit strategies, ERM intends to meet the evolving needs of its clients by introducing this new business line.
