Alberta carbon market woos speculators as asset manager piles in - BNN Bloomberg

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A carbon market in oil-rich Alberta is getting an injection of speculative money from an asset manager jockeying to become a top investor on a platform dominated by energy firms.

Durum Capital Inc. agreed to boost its holdings of carbon credits to more than 400,000 from 22,000 via two limited partnerships, according to Spencer Gordon, vice president of the Calgary-based firm. The purchased credits, to be delivered by the second quarter of next year, may put Durum among the 15 largest holders in the market, he said. The deal is funded with a $15 million private sale by Wellington-Altus Private Wealth Inc. and $6 million from other investors.

Durum’s purchase marks a major shift for a 15-year-old market that is mostly the domain of a few dozen large industrial greenhouse gas emitters. An increase of investors speculating on the opaque market could improve liquidity and boost prices for the environmental credits traded on the Alberta platform.

Sales on the Alberta market are private and prices aren’t publicly listed, though ClearBlue Markets said credits trade at about $47.50 a metric ton -- a $2.50 discount to the carbon price. The discount may reflect that most credits are bought to meet short-term obligations by industrial emitters rather than being held long term as an investment, Gordon said.

 

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If it possible to purchases carbon credits to bank for future use? If the CC is $50 now and rising to $170 in 7 yrs. Is there an open market for CC. Invest exaggerated earnings now. if this is the new game with the Feds, might as well make it work in your advantage

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