Regulatory Authorities Provide Warning to Investors in the Carbon Market
Regulator provides warning advice to investors about the carbon market, but a bit lacking in detail according to Mark Skeels.
“Guidance Note welcome, but they could have helped investors further!”
The current financial crisis has lead investors to look towards alternative investments at a time when traditional asset classes such as stocks, bonds and cash are not delivering the returns required by investors.
One of the alternative investment areas that has seen significant growth is Carbon Credits. In the UK alone there has been over 100 carbon brokerage houses set up in the last year or two.
Mark Skeels, the owner of www.alternativeinvestmentsinfo.com was quoted as saying: “I think the carbon market is currently one of the best markets to invest in. I have recently banked a 30% return in 12 months in the carbon market, but the key to making good returns in this market is to ensure you buy at the right price and only invest with a reputable broker.”
Skeels went on to say “ Unfortunately there are a number of carbon brokers in the market who are ripping off their investors and are only interested in making money and not looking after the investors’ interests. I have been offered a lot of projects over the last 12 months where the prices offered to me where, in my opinion, scandalous.”
When asked what could be done about this he said: “The FSA are starting to crack down on brokers and have already closed some down. They have also provided a guidance note to investors looking at this market, but in my opinion the guidance is not sufficiently detailed.”
When asked what advice would he give investors before investing in carbon credits he mentioned 9 things which an investor should consider before investing:
- Is the company regulated by the country’s financial authorities?
- What Price are the Credits being offered for sale at? Can the broker provide an exit strategy?
- What is the recommended holding period in this market?
- What projects typically see good returns?
- Who would take funds for the trade; the custodian or consultant?
- What markets are best to invest in? The regulated or the voluntary market?
- What registry are the credits being held on?
- Is there a demand from corporate customers for the project the investor is being recommended so there is the opportunity to sell on at a profit to investors.
Skeels was asked whether, if an investor followed this checklist, would they be better protected? He said: “These questions would help investors get better information to make an informed decision, but where possible you should use a broker who was personally recommended by somebody you trust. If you don’t know anybody, I am happy to recommend my broker who I feel act in an ethical way and want to build a long term client base and deliver good solid returns over the medium term.”
That is great for new investors, but what can be done for investors who have been ripped off in the past by those companies that have now been closed down? Mark said: “I have had a lobbied my broker to put together a service to help investors liquidate positions or to average down the cost of their holdings. If there are any investors thinking How do I Sell My Carbon Credits, get in contact and I can put you in touch with my carbon broker. They most likely to have a solution to your problem.”
If you would like to find out more about Alternative Investments or investing in carbon credits you can contact Mark Skeels at the address below.
5 Wordsworth Way
Clacton on Sea
+44 845 519 9162
- Contact Information
- Mark Skeels
- AAA Business Consulting Ltd
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