The Future of the Carbon Markets Explained for Risk Professionals

Hear from Mike Azlen, Founder and CEO of Carbon Cap Management, as we explore the ever-changing carbon markets and the future of emissions trading.

The carbon markets can be very confusing. Between offsets, credits, permits, and allowances, it can be hard to understand the many ways emissions can be traded, as well as the different mechanisms for pricing them. Furthermore, as these markets and their participants mature, different strategies are emerging for how firms can transition to net-zero in a safe and responsible way.

In today’s episode, we’ll explain the fundamentals of the compliance and voluntary carbon markets, but also explore some key emerging trends, including:

• The proliferation of emissions trading schemes across the world;
• How firms are navigating the challenges of the voluntary carbon market; and
• The advent of carbon as a fully-fledged asset class.

To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: https://www.garp.org/scr

For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: https://www.garp.org/sustainability-climate

If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: climateriskpodcast@garp.com

Links from today’s discussion:

• Carbon Cap Management’s (CCM) World Carbon Fund 
  - https://www.carbon-cap.com/world-carbon-fund
• CCM’s research paper - Carbon as an Emerging Asset Class - https://www.cfainstitute.org/-/media/documents/article/industry-research/climate-change-analyis.ashx#page=36
• CCM’s educational videos on carbon markets, carbon trading, and climate change 
  - https://www.carbon-cap.com/educational-videos
• International Carbon Action Partnership (ICAP) ETS Map 
  - https://icapcarbonaction.com/en/ets
• Climeworks’ direct air capture technology 
  - https://climeworks.com/direct-air-capture
• JP Morgan’s recent purchase of carbon removal credits 
  - https://www.reuters.com/sustainability/jpmorgan-chase-spend-200-mln-carbon-dioxide-removals-2023-05-23/

Speaker’s Bio

Mike Azlen, Founder and CEO, Carbon Cap Management

Mike is a senior investment professional with 25 years of industry experience. After a 15-year career spanning two Canadian banks and several alternative asset management companies, Mike founded Frontier Investment Management in 2005 and grew the business to profitability before selling the business to a public company in 2013 and completing his earnout in 2016.

Mike formed Carbon Cap Management LLP in 2018 as an environmental asset manager focused on climate change and launched the World Carbon Fund in February 2020. The fund invests into multiple liquid and regulated carbon markets and aims to generate strong uncorrelated returns and a direct impact on carbon emissions. Carbon Cap’s mission is to raise awareness about climate change and to provide solutions directly related to the capping and reduction of carbon dioxide emissions.

Mike holds a Sloan Masters Degree in Leadership and Strategy from London Business School and is a Chartered Alternative Investment Analyst (CAIA) and has completed the LSE’s Economics and Governance of Climate Change course. Mike is a regular speaker at investment conferences and has been a guest lecturer on the graduate degree programs at London Business School for more than 15 years.