TORONTO, ONTARIO, November 16, 2021 – Carbon Streaming Corporation (NEO: NETZ) (FSE: M2Q) (“Carbon Streaming” or the “Company”) is pleased to comment on the existing carbon streaming investments in our portfolio and the strong demand and surging prices in the voluntary carbon markets for REDD+ (Reducing Emissions from Deforestation and forest Degradation) carbon credits. In addition, the Company would like to congratulate the almost 200 countries that came together for the 26th UN Climate Change Conference of the Parties (“COP26”) that reinforced a global commitment to adaptation, mitigation, finance mobility and collaboration, all key actions to address climate change.
Commercial Highlights - Carbon Streaming expects to receive up to 7 million Verra registered REDD+ carbon credits in the first half of 2022 (“1H22”) from our existing carbon credit streaming investments into the Rimba Raya and Cerrado Biome projects.
- The Company has been experiencing strong demand at premium prices for the credits the Company expects to receive in 1H22.
- REDD+ 2021 vintage carbon credits are currently trading for an average of US$13.72/credit (as seen on www.carboncredits.com). REDD+ credits have approximately doubled in price since Carbon Streaming invested in both Rimba Raya and Cerrado Biome projects.
- REDD+ carbon credit prices are rising in a market that is rapidly expanding. According to Forest Trends’ EcoSystem Marketplace Initiative, transactions of REDD+ credits have grown 280% between September 2020 and September 2021. This year the voluntary carbon credit market has exceeded US$1 billion as of November 9, 2021.
- Carbon credits with co-benefits such as support for community wellbeing and biodiversity exemplified by our project streams in Rimba Raya and Cerrado Biome command premium market pricing for the carbon credits these projects produce.
COP26 Highlights: - After 6 years, an agreement on Article 6 of the Paris Agreement, the rules governing global trading in offsets, has been reached. This is expected to bring greater transparency, rigor and buyer confidence to the voluntary carbon markets.
- Over 100 nations agreed to a non-binding pact to end deforestation by 2030.
- A declaration was signed by 23 parties on International Aviation Climate Ambition seeking to ensure maximum efficacy of CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).
“In conjunction with global talks on climate change at COP26, significant upward momentum in prices and the exponential growth of the voluntary carbon markets, we are seeing incredibly strong interest in our portfolio of high-quality nature-based carbon offsets,” stated Justin Cochrane, Carbon Streaming’s CEO. “It’s important to remind investors that we’re expecting the issuance of up to 7 million REDD+ credits in the first half of 2022 from our current carbon credit streaming investments.”
Mr. Cochrane continued: “With current prices in the US$13-$14/credit range for REDD+ carbon credits and the strong upward pricing momentum we are seeing, Carbon Streaming expects the credits delivered under these streams to benefit from increasing price and demand which should, in turn, generate substantial cash flow to the Company and our strategic partners.”
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