Carbon Credits

I'll be looking seriously at a company called Base Carbon that should IPO in the next month or so. Especially if there are warrants available to buy since those can provide some leverage and don't tend to be inflated after IPO.

Base Carbon

And it will probably only trade on Canadian exchanges so if your broker doesn't offer that Interactive Brokers does. It's the best for buying international stocks.

I know someone who has acres up for carbon credits. Total scam. They’re just replanting trees after clear cutting. They’ll cut those down too in about 20-30 years when fully mature. In the meantime they’re getting a few grand for “carbon offsets.”

I don’t hate them for it but just another example of the scams around esg.

Was your bad experience anything beyond NCX not accepting your bid for available credits? My bid for this most recent cycle was higher than what they ultimately accepted ($8/credit). I don’t plan to cut for awhile, so really anything is a bonus. That said, I’d expect as more people enter in with same mindset as I, the price for credits will be driven down to a value that’s inconsequential to participate.

No. I knew the bids would be about $8/credit. The $/credit is meaningless. The assessment of harvest deferral credit is what matters. I did not enter the auction after receiving their harvest deferral credit (HDC) assessment.

I have merchantable timber. From their credit assessment and at $8/credit, I’m below 1% rate. I’d be better off cutting the timber now and investing the proceeds. Admittedly, I won’t, but this highlights that their algorithm for HDC assessment is badly flawed, at least for my acreage.

They can keep their pittance and I’ll keep telling my Honda Fit driving coworkers that my redneck’s carbon footprint is lower than theirs.

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Also a good cause

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It's a way for government to control companies and their production rates without nationalizing them. It also creates a whole new market for politicians and their insider friends to profit off of government regulations. I guess they were milking wetlands credits and emission purchases as much as they could and needed something new.

I would argue that ESG hasn’t really caught on yet full scale in the US. In Europe and many parts of Asia, ESG regulations are already established. Whether you agree with the politics or not, it’s coming and fast to the US and companies will be forced to play ball.