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Can sustainable investing generate carbon credits?

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  • João Zambujal-Oliveira

Abstract

In a world where greenhouse gases (GHG) carry a price, organisations can create financial instruments that are tradable on the carbon market by investing in projects that reduce GHG emissions. The purpose of this study is to critically analyse an investment project from EcoSecurities to mitigate the emissions of methane from a coalmine located in China's Sichuan province. This project generates carbon credits that are later sold to governments and organisations under the Kyoto Protocol. In order to evaluate this investment, we conducted an analysis centred in its net present value, and we take into consideration a set of external variables and the financial and economic situation of EcoSecurities. This study concludes that EcoSecurities project investment, since project's net present value is positive, it has a relevant impact on EcoSecurities strategy and improves the company's financial situation as it increases revenues and improves assets using efficiency.

Suggested Citation

  • João Zambujal-Oliveira, 2012. "Can sustainable investing generate carbon credits?," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 14(1/2), pages 5-29.
    • Handle: RePEc:ids:gbusec:v:14:y:2012:i:1/2:p:5-29
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    References listed on IDEAS

    as
    1. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2007," World Bank Publications - Reports 13407, The World Bank Group.
    2. Josef Janssen, 2000. "Implementing the Kyoto Mechanisms: Potential Contributions by Banks and Insurance Companies," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 25(4), pages 602-618, October.
    3. repec:wbk:wboper:13406 is not listed on IDEAS
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