Carbon Offset Credits - What are they and should pension schemes invest in them?

A significant development that resulted from COP26 in Glasgow was a set of rules known as Article 6, which set out a clear framework for the standardisation of international trading of carbon credits. This development will help reduce greenhouse-gas emissions but the reasons for this are often not well understood.

In this note Simeon Willis, our Chief Investment Officer, explores the role that carbon credits can play in emission reduction and the opportunities this might create for pension scheme investors.