Carbon Credits Offer Fantastic Real Estate Investment Opportunity in Costa Rica
At a time when so many are looking for an investment opportunity outside of the stock market, carbon credits offer what could potentially be the biggest market
Currently (6/2009) in Bonn Germany the world leaders are meeting in a pre-conference to discuss the basic agenda for the upcoming meeting in December 2009 where they will focus on new legislation for the new Global Climate Treaty. If they set up a mandatory carbon emissions limit and with a trading system with actual dollar amounts we will see a massive demand for carbon offsets that people can buy worldwide.
We now know that it is a priority of the Executive and Legislative branches to enter the US into a carbon cap-and-trade system similar to the Kyoto Protocol. This should dramatically increase demand for carbon credits and therefore the value of those credits.
The political rhetoric in the US and around the world indicates that the successor agreement(s) to the Kyoto Protocol should be much more ambitious in its carbon reduction targets. Again, more ambitious targets will increase the demand for carbon credits and therefore the value of those credits.
What does all of this mean to an investor? According to a 2006 UK study, just 1.5+/- acres of tropical forest land could be worth as much as $25,000 in carbon credits at a CO2 price of $35 to $50 per ton.(The EU market price in May 2009 was $39)
The ecological and environmental aspects of the property will have dynamically increasing values in the future particularly with the upcoming demands for carbon credits worldwide. According to the World Bank – Global trade in carbon credits valued at 64 Billion dollars in 2007 compared to 31 billion dollars in 2006. Forbes Magazine reported last year that traders bought and sold in excess of 60 billion dollars worth of emissions allowances mostly in Europe and Japan where governments regulate greenhouse gases. If anticipated regulation comes to the US the country’s carbon-trading market is expected to be worth 1 Trillion dollars – annually by 2020.
Purchasing oxygen properties in Costa Rica for carbon credits can be a solution to carbon emissions and also a business of the future, leasing these properties with carbon credits to those companies that need to offset their carbon emissions to reduce global warming and comply with the anticipated new World Climate Treaty. These properties will be taken out of development and set aside as oxygen carbon credit properties.
WindStarRealEstate is a carbon and oxygen property specialist offering carbon and oxygen properties and has a team of specialists to assist you with your investment of carbon and oxygen properties.