Carbon Streaming’s investment strategy is to build a diverse portfolio of carbon credits by investing in both the compliance and voluntary carbon markets. The Company intends to purchase compliance credits principally for long-term price appreciation. Carbon Streaming will diversify its exposure by participating in compliance markets covering different geographical areas with an initial focus on North America and Europe. The Company also intends to create streaming arrangements with individuals, companies and governments to stream carbon offsets from their assets or property. Direct interests may also be acquired in a limited amount of carbon offset projects.
“We anticipate significantly higher carbon prices over the next decade as governments and corporations around the world commit to fighting climate change and utilize carbon markets as an essential tool to meet these climate commitments.”Anthony Milewski
What is a Stream?
A carbon credit stream is a contractual agreement whereby Carbon Streaming makes an upfront payment in return for the right to receive a portion of future carbon credits generated by the project. An additional per-carbon credit delivery payment may be paid to the project owner when it delivers the carbon credits.
How Streaming Works
Carbon Streaming proposes to make an upfront payment plus ongoing delivery payments for a fixed percentage of future carbon credits generated over the life of the project.
The stream agreement provides Carbon Streaming with exposure to carbon credits and potential price appreciation upside without taking on the operating responsibility and risk of managing a carbon offset project.
There are a number of benefits of streams to the project owner as well:
- Upfront and annual income for decades
- Potential funding of initial program costs and management of registration and ongoing verification process
- Ability to register a project and monetize carbon credits that may otherwise be unavailable
- Positive feeling about being socially responsible by helping to reduce climate change