Top 4 Carbon Stocks To Watch In 2024 – CarbonCredits.com

Analysis of Carbon-Related Equities and Their Contribution to Sustainable Development Goals

Following a significant price surge in 2021, carbon markets experienced a moderation in 2022, adjusting the valuations of companies operating within this sector. Corporate commitments to decarbonization, in line with global climate objectives, continue to drive the strategic importance of carbon-related investments. These investments are instrumental in advancing the United Nations Sustainable Development Goals (SDGs), particularly SDG 13 (Climate Action).

Numerous corporations, from large technology firms like Apple and Microsoft to industrial leaders, are establishing ambitious net-zero emission targets. These initiatives rely heavily on carbon credits, offsetting, and sequestration projects, creating a robust demand for services and financial instruments that support these climate goals. This report examines several publicly traded companies whose business models are aligned with facilitating the transition to a low-carbon economy and contributing to various SDGs.

Company Profiles in the Carbon Market

Carbon Streaming Corporation (NETZ.NEO, OFSTF.OTC)

Carbon Streaming Corporation operates as a streaming and royalty company, providing upfront financing to carbon offset projects in exchange for a portion of the resulting carbon credits. This model finances critical climate action projects and supports global sustainability efforts.

• Business Model: Provides capital for project development, mitigating risk for investors while securing a supply of high-quality carbon credits. This approach fosters innovation and infrastructure for climate solutions, aligning with SDG 9 (Industry, Innovation, and Infrastructure).
• Global Portfolio: The company’s portfolio includes 21 projects across 12 countries, demonstrating a commitment to SDG 17 (Partnerships for the Goals) by collaborating with international partners to achieve climate targets.
• Flagship Project and SDG Impact: The Rimba Raya Biodiversity Project in Indonesia is a premier REDD+ (Reducing Emissions from Deforestation and Forest Degradation) initiative that formally addresses all 17 UN SDGs. It makes significant contributions to SDG 15 (Life on Land) by protecting vital ecosystems and SDG 8 (Decent Work and Economic Growth) through local community engagement, in addition to its primary focus on SDG 13 (Climate Action).

Operational Highlights:

1. Anticipates carbon credit issuance from ten or more projects by the end of 2023.
2. Led by a management team with extensive experience in streaming agreements and carbon markets.
3. Projects a significant growth trajectory, targeting an annual volume of nearly 20 million credits by 2027.

DevvStream (DESG.NEO)

DevvStream finances green projects in exchange for carbon credit rights, leveraging a proprietary blockchain-based platform for the management and verification of these credits. This technological approach enhances transparency and accountability in the carbon market.

• Technology-Driven Model: Utilizes the DevvESG blockchain platform, developed by its parent company Devvio, for transparent and efficient management of carbon credits. The platform’s low energy consumption and high scalability represent a significant innovation, contributing to SDG 9 (Industry, Innovation, and Infrastructure).
• ESG and Market Growth: The company operates at the intersection of ESG investing and the rapidly expanding carbon market. Its platform supports corporations in achieving regulatory compliance and ESG reporting, which aligns with SDG 12 (Responsible Consumption and Production).
• Strategic Partnerships: DevvStream benefits from access to Devvio’s corporate client base and a partnership with Xpansiv, the world’s largest voluntary carbon credit marketplace. These collaborations exemplify SDG 17 (Partnerships for the Goals) by creating an ecosystem that connects credit generation with market demand.

Base Carbon (BCBN.NEO)

Base Carbon focuses on financing projects that generate voluntary carbon credits, with a portfolio concentrated on initiatives with direct social and environmental co-benefits.

• Project Focus and SDG Alignment: The company has committed $29.6 million to two key projects.
  • Vietnam Household Devices Project: Funds the distribution of 850,000 fuel-efficient cookstoves and 364,000 water purifiers. This project directly advances SDG 7 (Affordable and Clean Energy), SDG 3 (Good Health and Well-being) by reducing indoor pollution, and SDG 6 (Clean Water and Sanitation).
  • Rwanda Cookstoves Project: Facilitates the distribution of 250,000 fuel-efficient cookstoves, reducing wood consumption and deforestation. This contributes to SDG 7, SDG 3, and SDG 15 (Life on Land).
• Strategic Initiatives: A partnership with the Danish Red Cross to develop blue carbon projects in Southeast Asia demonstrates a commitment to marine ecosystem preservation, directly supporting SDG 14 (Life Below Water).

Brookfield Renewable Partners (BEP)

Brookfield Renewable Partners is one of the world’s largest publicly traded, pure-play renewable power companies. Its core business is the generation of clean energy, which is fundamental to global decarbonization efforts.

• Pure-Play Renewable Portfolio: BEP’s entire portfolio consists of renewable assets, including hydroelectric, wind, and solar facilities. This directly contributes to the global expansion of clean energy, a primary target of SDG 7 (Affordable and Clean Energy).
• Global Decarbonization Impact: With 24 gigawatts of existing capacity and a development pipeline set to add another 11 GW, BEP plays a significant role in reducing global greenhouse gas emissions, making a substantial impact on SDG 13 (Climate Action).
• Enabling Corporate Net-Zero Goals: By providing 100% carbon-free electricity, BEP enables other corporations to reduce their Scope 2 emissions and meet their net-zero targets, thereby facilitating broader progress on SDG 12 (Responsible Consumption and Production).

Market Outlook and SDG Implications

The increasing number of public companies establishing net-zero ambitions is channeling significant capital into renewable energy and carbon offsetting solutions. This trend is expected to accelerate as the 2030 and 2050 target dates approach. Investments in carbon-related stocks represent a direct mechanism for financing projects that yield measurable progress on the UN Sustainable Development Goals. These companies are not only positioned to benefit from market growth but are also integral to building a sustainable, low-carbon global economy.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on carbon stocks and related investments touches upon several Sustainable Development Goals (SDGs). The primary focus is on climate action, but the specific projects and corporate strategies mentioned create direct and indirect links to numerous other goals. The following SDGs are addressed:

• SDG 3: Good Health and Well-being: The article mentions projects aimed at replacing inefficient cookstoves, which directly addresses health issues caused by indoor air pollution.
• SDG 6: Clean Water and Sanitation: A specific project funded by Base Carbon involves the distribution of water purifiers in Vietnam.
• SDG 7: Affordable and Clean Energy: The discussion revolves around transitioning to a low-carbon economy, investing in renewable energy companies like Brookfield Renewable Partners, and providing cleaner energy solutions like fuel-efficient cookstoves.
• SDG 9: Industry, Innovation, and Infrastructure: The article highlights innovative financing models (streaming and royalty companies), technological advancements (blockchain for ESG tracking), and the development of sustainable infrastructure (renewable energy plants).
• SDG 12: Responsible Consumption and Production: It details how major corporations are adopting sustainable practices by setting net-zero targets and disclosing their carbon footprints.
• SDG 13: Climate Action: This is the central theme of the article. Every aspect, from carbon credits and net-zero targets to renewable energy investments, is a measure to combat climate change and its impacts.
• SDG 15: Life on Land: The article explicitly mentions the Rimba Raya Biodiversity Project, a REDD+ (Reducing emissions from deforestation and forest degradation) initiative aimed at protecting forests.
• SDG 17: Partnerships for the Goals: The entire carbon market ecosystem described relies on partnerships between investors, project developers, corporations, and technology providers to achieve climate and sustainability objectives.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the activities and projects described, several specific SDG targets can be identified:

1. Target 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.
   • Explanation: The Base Carbon project in Rwanda aims to address “negative health impacts” resulting from households relying on biomass for cooking. By providing fuel-efficient cookstoves, the project reduces exposure to harmful indoor air pollution.
2. Target 6.1: By 2030, achieve universal and equitable access to safe and affordable drinking water for all.
   • Explanation: The article states that Base Carbon’s project in Vietnam includes the distribution of “364,000 safe-drinking water purifiers to families in rural areas.”
3. Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services.
   • Explanation: The projects in Vietnam and Rwanda that distribute fuel-efficient cookstoves are a direct effort to provide modern and less polluting energy services for cooking, replacing “solid fuel combusted within open fires or inefficient cookstoves.”
4. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • Explanation: The profile of Brookfield Renewable Partners (BEP) highlights its status as “one of the world’s largest publicly traded renewable energy companies” with a portfolio consisting solely of renewable sources like hydroelectric, wind, and solar power.
5. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable…and greater adoption of clean and environmentally sound technologies and processes.
   • Explanation: The article discusses DevvStream’s use of a “proprietary blockchain-based ESG platform” for transparent and efficient management of carbon credits, representing an adoption of clean technology. The overall theme of investing in a “low-carbon economy” supports this target.
6. Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.
   • Explanation: The article explicitly notes that companies from “Amazon to Netflix and Xerox…are releasing plans to disclose and reduce their carbon footprint,” which is a direct reflection of this target.
7. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • Explanation: While the article focuses on corporate strategy, the actions of major companies like Apple and Microsoft committing to “net zero by 2030” represent the integration of climate change measures into their core business strategies, a private-sector parallel to national planning. The existence of compliance and voluntary carbon markets, which these companies operate in, is a result of overarching climate policies.
8. Target 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests…
   • Explanation: Carbon Streaming’s flagship Rimba Raya project is described as “one of the world’s largest REDD+ projects,” which are designed specifically to halt deforestation and promote sustainable forest management.
9. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships…
   • Explanation: The article is replete with examples of such partnerships. DevvStream partners with its parent company Devvio and the marketplace Xpansiv. Base Carbon partners with the Danish Red Cross. The entire business model of “streaming and royalty companies” is based on forming financial partnerships to develop green projects.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article provides several quantitative and qualitative indicators that can be used to measure progress towards the identified targets:

• Number of households receiving clean energy/water solutions: The article specifies “850,000 fuel-efficient cookstoves and 364,000 safe-drinking water purifiers” for the Vietnam project and “250,000 fuel-efficient cookstoves” for the Rwanda project. These are direct progress indicators for Targets 6.1, 7.1, and 3.9.
• Reduction in traditional fuel consumption: The Rwanda project aims to reduce “consumption of wood by at least 71%,” a clear indicator for Target 7.1.
• Volume of carbon credits generated: Progress can be measured by the amount of carbon credits produced. The article mentions Base Carbon’s projects are “estimated to generate a total of 34 million carbon credits” and Carbon Streaming expects to peak near “20 million credits per year by 2027.” This is an indicator for Targets 13.2 and 9.4.
• Renewable energy capacity: Brookfield Renewable Partners’ capacity is a key indicator for Target 7.2. The article states it “owns 24 gigawatts of power generating assets” and has a development pipeline to increase this by “46% over the next three years.”
• Number of companies with net-zero commitments: The article names several companies (Apple, Microsoft, Amazon, Shell, etc.) that have made net-zero pledges, serving as a qualitative indicator for Target 12.6. The target years (2030, 2050) provide further detail.
• Financial investment in sustainable projects: The article mentions Base Carbon has “committed USD$29.6 million for projects in Rwanda and Vietnam,” which is a financial indicator for mobilizing resources towards SDG-related activities (relevant to Targets 15.B and 17.3).
• Growth of ESG and Carbon Markets: The article notes that ESG assets are estimated to hit “$41 trillion” and that “carbon markets are set to grow between 15x and 100x by 2030.” These market-level statistics are macro-indicators of progress towards SDGs 12, 13, and 17.

4. Summary Table of SDGs, Targets, and Indicators

Source: carboncredits.com