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Mountain Lake

Carbon has become a liquid and investable asset class that now trades approximately US$1 billion per day across physical carbon, futures, and options. Carbon has exhibited attractive historical returns and a low correlation with other asset classes, making it potentially attractive within a diversified portfolio.

There is a huge demand market for carbon sinks. For example, airlines around the world have recently begun to monitor their carbon emissions as part of a UN climate deal, which is called the UN “CORSIA” scheme. It is anticipated that CORSIA will mitigate around 2.5 billion tonnes of carbon emissions between 2021 and 2035, which is an annual average of 164 million tonnes of carbon emissions. This is equivalent to the total annual emissions from the Netherlands across all sectors.

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