Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: You're listening to Bloomberg Business Week with Carol Masser and
Speaker 2: tim Stenoveek on Bloomberg Radio. Well.
Speaker 3: According to Bloomberg NAF New Energy Finance, the global carbon
Speaker 3: market is already substantial. It's valued at eight hundred billion
Speaker 3: dollars in twenty twenty three in project and projects. Excuse me,
Speaker 3: a potential for the market to grow significantly. We're talking
Speaker 3: about maybe one trillion dollars annually by mid century. This
Speaker 3: growth depends on factors like the resolution of credibility issues
Speaker 3: and the scaling of carbon removal and nature based solutions
Speaker 3: Harmon Credits. By the way, one of the discussions going
Speaker 3: on here at Millcoon with Morris Olivia Alberch's the CEO
Speaker 3: and founder of Art to Meter, and she is also
Speaker 3: I want to wink out prior to this from the
Speaker 3: CEO at Aspiration of a Climate finance and oak Tree
Speaker 3: portfolio company offerings SUS stateability solutions for consumers, businesses and investors.
Speaker 2: Before that, she's spent a.
Speaker 3: Decade at Pimco, most recently has had VSD business strategy.
Speaker 1: I mean, you are just all in.
Speaker 3: It feels like from a lot of different perspectives. How
Speaker 3: would you today? What's all about milk and is the
Speaker 3: intersection of finance and everything in our world, So how
Speaker 3: would you describe the intersection of financial climate right now?
Speaker 2: Absolutely? Look, as you mentioned, the carbon markets really are
Speaker 2: that intersection of climate and capital markets, and we really
Speaker 2: believe that they can be part of the solution to
Speaker 2: help us decarbonize and transition the global economy to a
Speaker 2: low carbon economy with energy dominance that's focused on clean energy.
Speaker 2: So carbon markets are really at that epicenter. As you mentioned,
Speaker 2: it's almost a trillion dollars today. This is not a
Speaker 2: small asset class. It is not a small market, but
Speaker 2: a lot of people focus their effort and energy on
Speaker 2: the voluntary markets, which today is one point five billion dollars,
Speaker 2: so fraction of the total carbon marketplace at artimeter where
Speaker 2: carbon investment managers at our core, we're focused on applying
Speaker 2: capital market savvy and experienced play US science and integrity
Speaker 2: to help create a solution to the amount of carbon
Speaker 2: that we have in the atmosphere, which is just fundamentally
Speaker 2: out of balance.
Speaker 1: It's the interest still there because there's been a lot
Speaker 1: of talk about the US's commitment to climate chain goals
Speaker 1: and the idea that governments start to pull back from
Speaker 1: some of these goals and there might be less incentive
Speaker 1: for investors which also to pursue those type of investments.
Speaker 2: These are the exact topics that the market is wrestling
Speaker 2: with today. We need to see clear demand signals for
Speaker 2: carbon assets in the compliance markets, which make up the
Speaker 2: bulk of the hundreds of billions of dollars of assets
Speaker 2: in this space. They're clear demand signals because they're obligatory.
Speaker 2: They're compliance markets where there's an obligation from those entities
Speaker 2: operating in those jurisdictions like the California Cap and trade
Speaker 2: system for example, where we haven't seen that same demand
Speaker 2: function is coming in the voluntary markets. And I like
Speaker 2: the kid, but it starts with the name. It's voluntary
Speaker 2: carbon markets. It's voluntary. What do we need to see
Speaker 2: more compliance, regulated, required activity?
Speaker 3: Well, good luck with that, because you have a president
Speaker 3: who has taken us away from the Paris Climate Agreement.
Speaker 3: So how do we get there?
Speaker 2: Well, it's interesting. The first speaker at Milkin on Monday
Speaker 2: morning was Scott Besson, the US Secretary Treasury, and he's
Speaker 2: talked about the idea of a carbon border adjustment mechanism
Speaker 2: to match the competitiveness and leveling the playing field for
Speaker 2: our US companies here in the US compared to the
Speaker 2: European Sea BAM that has an export. Anytime you export
Speaker 2: into the European markets, you're gonna have to pay a
Speaker 2: carbon tax. Do you want to send as a US company?
Speaker 2: Do you want to send your tax dollars to Brussels?
Speaker 2: Or do you want to fund the government activity at
Speaker 2: the US government? So I do think that there are
Speaker 2: parts of the US administration today who are serious about
Speaker 2: carbon as being part of a tariff plan and program.
Speaker 1: So do you think you'll seek to renewed interest? I mean,
Speaker 1: Bloomberg had a great story last week about how a
Speaker 1: lot of financial cards have actually scaled back to the
Speaker 1: SG departments. So I sort of saying that they over
Speaker 1: hire given where we are now. But is this just
Speaker 1: sort of kind of almost cyclical to a certain extent,
Speaker 1: and then at some point, I know, if we're talking
Speaker 1: to you two years from now, it'll just be a
Speaker 1: totally different story.
Speaker 2: I think that you're consistently hearing in sustainable finance. So
Speaker 2: carbon is being an offshoot of this concept of sustainable
Speaker 2: finance and sustainable investing. I think you've got clear kind
Speaker 2: of consensus among institutional investors that climate, carbon other sustainability
Speaker 2: factors are just a core part of your research function.
Speaker 2: If you're not focusing on those factors and you're ensuring
Speaker 2: homes in California, you're missing the vote, You're not doing
Speaker 2: your job right. So these factors are critical as part
Speaker 2: of the research function. Absolutely, But I do think you're
Speaker 2: seeing a step back, particularly in the venture markets. I
Speaker 2: think you're starting to see real interest, deep interest in
Speaker 2: infrastructure project finance, where you're starting to see the technology
Speaker 2: risk has passed and now you need to deploy and scale.
Speaker 2: And I think you're seeing billions of dollars being deployed
Speaker 2: into infrastructure project finance related activities.
Speaker 1: Starting call theres so Long War Ago.
Speaker 2: Olivia Albrick.
Speaker 1: She's the CEO and founder of Arta Meter