Octopus Investments has introduced a new Natural Capital Strategy to acquire UK land-based assets to generate carbon removal credits and other revenue streams.
This move marks Octopus Investments’ entry into the voluntary carbon market, aligning with its focus on nature-based solutions.
Mike Toft, senior fund manager at Octopus Investments, stated that the Natural Capital Strategy represents the next phase in the firm’s ambition to increase its assets under management from £13 billion to £50 billion by 2030.
This move into natural capital follows the successful launch of the Octopus Sustainable Infrastructure Fund and Octopus Affordable Housing Fund.
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“Climate change is the biggest challenge of our time and while reducing carbon emissions to reach net zero targets is key to addressing this challenge, we will not reach this goal by decarbonisation alone,” said Toft.
“We know that more high-quality carbon credits need to be generated to help offset carbon and accelerate our net zero efforts,” he added.
This development occurs during increased scrutiny on the voluntary carbon market, driven by concerns about selling ineffective ‘junk’ carbon credits that do not deliver the promised emissions reductions or removals.
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Nevertheless, supporters of the sector contend that high-integrity carbon credits can indeed achieve emissions savings and are crucial for attracting investment into nature restoration and carbon removal projects.
Various standards bodies, such as the Integrity Council for the Voluntary Carbon Market, are actively working to enhance standards and transparency within the sector to instill greater confidence in the ability of projects to deliver on their emissions reduction commitments.