Carbon Credits International is expected to float onto the UK AIM market within the next two months at around 45p and some analysts believe the company has potential to offer significant capital growth to investors over the medium term. Recent interest in green investment has seen a rise in the number of green funds looking for ethical, environmentally friendly companies to back. The ratification of the Kyoto Protocol in February 2005 has forced all major polluting companies to factor carbon credits trading into their business practices and the market has grown from less than 25Mt in 2001 to 397Mt in 2005 (according to Point Carbon, a Norwegian consultancy and analysis company). Last year’s figure equates to US$11.3bn worth of carbon traded with experts estimating a market value of up to US$100bn over the next decade.
So far AIM has seen two companies raise money in this sector, namely Ecosecurities and Climate Exchange both of which have performed very well since completing an IPO. Cornhill Asset Management views Carbon Credits as a rare opportunity of gaining exposure to this market one stage prior to IPO.