– As part of the global transition to clean energy, most companies around the world will be required to achieve net zero carbon emissions by 2050.
Heath, who is also the CEO of Metalla Royalty & Streaming and Non-Executive Chairman of Nova Royalty, discussed the carbon credit market with Michelle Makori, Lead Anchor and Editor-in-Chief of Kitco News, on the sidelines of the BMO Global Metals & Mining Conference in Hollywood, Florida.
Heath explained how carbon credits work-if companies cannot reach net zero carbon emissions they can buy the rights in public markets for those credits.
The government has done this by putting pressure on the largest public and private corporations around the world to adopt and follow these carbon neutral mandates,” he continued.
Heath broke down the carbon credit market by explaining there are many different types of projects like technology, renewable energy and nature-based solutions.
In discussing how the carbon credit market is being regulated, Heath disclosed that there are only a few third-party registration groups that do the verification.
The coke you drink, the clothes you buy, or the nice restaurant that you frequent, eventually those businesses will pass the costs on to you,” he stressed.
In terms of pricing-one carbon credit which eliminates one ton of carbon dioxide from the environment, Heath revealed that the voluntary prices are in a $11 to $14 range.
Speaking about Carbon Neutral Royalty, Heath said, “Coming from the background of royalty and the streaming business, we wanted to use that approach again.
The reason is that blue carbons or mangroves are the largest carbon sinks in the world,” he stated.
“We partnered with Worldview International Foundation, because we wanted to help them fast track their goals.