Today, sustainability advisory firm ERM announced the launch of ERM Climate Markets, a new business focused on assisting companies in investing in carbon credits to address their ongoing greenhouse gas emissions and achieve decarbonization goals. The demand for carbon offset projects and credits is expected to grow significantly in the coming years as more companies set net zero ambitions and utilize offsets to balance challenging emissions reduction efforts.
Despite the growing market for carbon offsets, there are challenges present, such as difficulty for market participants to distinguish between high and low-quality projects, as well as insufficient data to assess project effectiveness. Alex Cox, Head of Climate Markets at ERM, emphasized the importance of carbon markets in achieving global net zero goals by 2050 while also acknowledging the need for increased scrutiny on the quality and impact of investments.
ERM Climate Markets aims to help companies and investors access high-quality carbon credit portfolios aligned with their decarbonization actions. The new business line will also work with project developers to provide clients with opportunities for high-quality carbon projects that deliver positive climate, community, and ecosystem outcomes. Additionally, the Climate Markets team will offer enhanced due diligence to help clients de-risk their investments.
With the growing momentum behind carbon credit strategies, ERM intends to meet the evolving needs of its clients by introducing ERM Climate Markets. The firm already works with clients at every stage of their decarbonization journeys and sees the new business as a way to further support their efforts in achieving sustainability goals.