London Stock Exchange Launches First Fund Under New Market for Carbon Credits
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London Stock Exchange Launches First Fund Under New Market for Carbon Credits

Foresight Sustainable Forestry, a U.K.-based investment fund that develops commercial forestland, is the first company to take part in the new voluntary carbon market

By KRISTIN BROUGHTON
Tue, Dec 13, 2022 8:48amGrey Clock 3 min

The London Stock Exchange Group PLC on Monday launched the first fund under its new market for carbon credits, which aims to provide capital to green projects and transparency in an opaque area of sustainable finance.

The new market offers a way for companies and investors to purchase carbon credits to offset emissions and meet net-zero commitments. Developers can raise funds through the exchange and use the money on projects to reduce greenhouse gasses. Companies and shareholders, in return for their investments, can receive carbon credits in lieu of cash dividends.

Companies can currently purchase carbon credits through brokers and private-market intermediaries. However, some companies find it difficult to get information about project developers and can struggle to identify specific projects—in areas such as forest protection or renewable energy—that fit their preferences, environmental lawyers said.

By launching the market the London Stock Exchange hopes to make it easier for companies and investors to access information about the projects that generate carbon credits, said Claire Dorrian, head of sustainable finance for the exchange’s capital markets and post-trade divisions. “I think the overarching principle behind all of this is transparency through disclosure,” Ms. Dorrian said.

Demand for credits in voluntary carbon markets is on the rise as more companies make net-zero commitments and position themselves as taking steps to improve the environment. Just under $2 billion in carbon credits were sold in 2021, up from $520 million a year earlier, according to Ecosystem Marketplace, which tracks data on environmental finance. By contrast, mandatory carbon markets in Europe and elsewhere force major polluters to limit their emissions.

Foresight Sustainable Forestry Co. PLC, a London-based investment firm, is the first company to take part in the new voluntary carbon market, the London Stock Exchange said Monday. Foresight invests in developing land for commercial forests, primarily in the U.K.

The company, which listed on the public markets in 2021, expects to raise additional funds in the year ahead using its Voluntary Carbon Market, or VCM, designation, meaning shareholders could elect to receive carbon credits in lieu of a cash dividend, said Richard Kelly, co-head of Foresight. “We’d be looking to attract companies, and ideally companies with science-based, net-zero pledges, to join us as shareholders,” Mr. Kelly said.

For the new market, developers must disclose the percentage of their total assets invested in eligible climate-change mitigation projects. They must also disclose the industry standards they use to certify their projects. Operating companies or investment funds on the exchange are eligible for the voluntary carbon market and must meet all other requirements for the market on which they are listed. London Stock Exchange Group also operates the FTSE 100 and FTSE 250 indexes and provides financial data.

Companies are facing increasing pressure to disclose climate-related information from regulators and standard-setters across the globe. Finance departments, in particular, are taking on a bigger role when it comes to allocating capital toward carbon offsets and reporting on pollution. “It is becoming more of a financing function, more of a treasury responsibility,” Ms. Dorrian said.

Still, the new market could come with challenges for companies looking to invest. For instance, those interested in crafting a particular narrative about their green investments may find it hard to do so if the credits they receive are tied to several underlying projects, lawyers said.

Underlying demand among companies for purchasing credits through the exchange also remains an open question. “It’s maybe a question of, ‘If you build it, they will come,’” said Chris Staples, a partner at the law firm Linklaters LLP.

Ms. Dorrian, the London Stock Exchange’s head of sustainable finance, declined to provide a specific figure on the number of companies and funds the stock exchange expects to launch on the voluntary carbon market in the coming year. The new market represents a change in how companies currently buy carbon credits, and it takes time for funds and companies to raise new funds, she said.

“It’s going to take, I think, a little bit of time for the market to digest,” Ms. Dorrian said.



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High-voltage outlets, smart chargers, money-saving utility programs: what to know about charging EVs at home

By JOANNA STERN
Thu, Mar 28, 2024 4 min

Things I miss about my local gas station:

That’s it. That’s the list. OK, fine, I did enjoy the communal squeegees.

This week marks six months since the grand opening of my home electric-vehicle charging station. Congrats to the whole team! (Me and my electrician.) Located between my garage door and recycling bin, it’s hard to beat for the convenience. And also the price.

If you’ve followed my ad-EV-ntures, you’re aware of my feelings about the hell that is public EV charging , at least before Tesla started sharing its Superchargers with its rivals. Truth is, I rarely go to those public spots. The vast majority of EV owners—83%—regularly charge at home, according to data-analytics company J.D. Power.

I already discovered many EV virtues , but I didn’t quite grasp the cost savings until I tallied up half a year of home-charging data. In that time, I spent roughly $125 on electricity to drive just under 2,500 miles. In my old car, that would have cost me more than twice as much—assuming gas held steady at around $3.25 a gallon . And I was charging through the winter, when electricity doesn’t stretch as far in an EV.

Rebates and programs from my state and utility company sweeten the deal. So I will be able to take advantage of discounted electricity, and offset the cost of my charger. The same may be available to you.

But first, there are technical things to figure out. A 240-volt plug? Kilowatt-hours? Peak and off-peak charging? While other people are in their garages founding world-altering tech companies or hit rock bands, I’m in there finding answers to your home-charging questions.

How to get set up

Sure, you can plug your car into a regular 120-volt wall outlet. (Some cars come with a cable.) And sure, you can also simultaneously watch all of Netflix while it charges. It would take more than two days to fill my Ford Mustang Mach-E’s 290-mile battery via standard plug, known as Level 1 charging.

That’s why you want Level 2, which can charge you up overnight. It requires two components:

• A 240-volt electric outlet. Good news: You might already have one of these higher-powered outlets in your house. Some laundry dryers and other appliances require them. Bad news: It might not be in your garage—assuming you even have a garage. I realise not everybody does.

Since my suburban New Jersey home has an attached garage, the install process wasn’t horrible—or at least that’s what my electrician said. He ran a wire from the breaker panel in the basement to the garage and installed a new box with a NEMA 14-50 outlet. People with older homes or detached garages might face trickier wiring issues—more of a “Finding NEMA” adventure. (I apologise to everyone for that joke.)

My installation cost about $1,000 but the pricing can vary widely.

• A smart charger. Choosing a wall charger for your car is not like choosing one for your phone. These mini computers help you control when to start and stop charging, calculate pricing and more.

“This is not something where you just go to Amazon and sort for lowest to highest price,” said Tom Moloughney, the biggest EV-charging nerd I know. On his website and “State of Charge” YouTube channel , Moloughney has reviewed over 100 home chargers. In addition to technical measurements, he does things like freezing the cords, to see if they can withstand wintry conditions.

“Imagine you are fighting with this frozen garden hose every time you want to charge,” he said.

One of his top picks, the ChargePoint Home Flex , was the same one my dad had bought. So I shelled out about $550 for it.

Just remember, if you want to make use of a charger’s advanced features—remote controls, charging updates, etc.—you’ll also need strong Wi-Fi in your garage.

How to save money

I hear all you money-minded WSJ readers: That’s at least $1,600 after getting the car. How the heck is this saving money? I assumed I’d recoup the charging-equipment investment over time, but then I found ways to get cash back even sooner.

My utility provider, PSE&G, says it will cover up to $1,500 on eligible home-charger installation costs . I just need to submit some paperwork for the rebate. In addition, New Jersey offers a $250 rebate on eligible charger purchases. (Phew! My ChargePoint is on the list.) If all is approved, I’d get back around $1,250. Fingers crossed!

I didn’t know about these programs until I started reporting on this. Nearly half of home-charging EV owners say they, too, are unaware of the programs offered by their electric utility, according to a 2024 study released by J.D. Power . So yes, it’s good to check with your provider. Kelley Blue Book also offers a handy state-by-state breakdown.

How to charge

Now I just plug in, right? Kinda. Even if you have a Level 2 charger, factors affect how many hours a fill-up will take, from the amperage in the wall to the current charge of your battery. Take Lionel Richie’s advice and plan on charging all night long .

It can also save you money to charge during off-peak hours.

Electricity costs are measured in kilowatt-hours. On my basic residential plan, PSE&G charges 18 cents per kWh—just 2 cents above the 2023 national average . My Mustang Mach-E’s 290-mile extended-range battery holds 91 kilowatt-hours.

Translation: A “full tank” costs $16. For most gas-powered cars, that wouldn’t cover half a tank.

And If I’m approved for PSE&G’s residential smart-charging plan, my off-peak charging (10 p.m. to 6 a.m. and weekends) will be discounted by up to 10.5 cents/kWh that I’ll get as a credit the following month. I can set specific charging times in the ChargePoint app.

Electricity prices fluctuate state to state but every expert I spoke to said no matter where in the country you live, home charging should cost less than half what gas would for the same mileage. (See chart above for a cost comparison of electric versus gas.) And as I’ve previously explained , fast charging at public stations will cost much more.

One big question: Am I actually doing anything for the environment if I’m just taxing the grid? Eventually, I’d like to offset the grid dependence—and cost—by powering my fancy little station with solar panels. Then, I’ll just be missing the squeegee.

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11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

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