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According to Bloomberg NAF New Energy Finance, the global carbon market is already substantial. It's valued at eight hundred billion dollars in twenty twenty three in project and projects. Excuse me, a potential for the market to grow significantly. We're talking about maybe one trillion dollars annually by mid century. This growth depends on factors like the resolution of credibility issues and the scaling of carbon removal and nature based solutions
Harmon Credits. By the way, one of the discussions going on here at Millcoon with Morris Olivia Alberch's the CEO and founder of Art to Meter, and she is also I want to wink out prior to this from the CEO at Aspiration of a Climate finance and oak Tree portfolio company offerings SUS stateability solutions for consumers, businesses and investors.
Before that, she's spent a.
Decade at Pimco, most recently has had VSD business strategy.
I mean, you are just all in.
It feels like from a lot of different perspectives. How would you today? What's all about milk and is the intersection of finance and everything in our world, So how would you describe the intersection of financial climate right now?
Absolutely? Look, as you mentioned, the carbon markets really are that intersection of climate and capital markets, and we really believe that they can be part of the solution to help us decarbonize and transition the global economy to a low carbon economy with energy dominance that's focused on clean energy. So carbon markets are really at that epicenter. As you mentioned, it's almost a trillion dollars today. This is not a
small asset class. It is not a small market, but a lot of people focus their effort and energy on the voluntary markets, which today is one point five billion dollars, so fraction of the total carbon marketplace at artimeter where carbon investment managers at our core, we're focused on applying capital market savvy and experienced play US science and integrity to help create a solution to the amount of carbon that we have in the atmosphere, which is just fundamentally out of balance.
It's the interest still there because there's been a lot of talk about the US's commitment to climate chain goals and the idea that governments start to pull back from some of these goals and there might be less incentive for investors which also to pursue those type of investments.
These are the exact topics that the market is wrestling with today. We need to see clear demand signals for carbon assets in the compliance markets, which make up the bulk of the hundreds of billions of dollars of assets in this space. They're clear demand signals because they're obligatory. They're compliance markets where there's an obligation from those entities operating in those jurisdictions like the California Cap and trade system for example, where we haven't seen that same demand
function is coming in the voluntary markets. And I like the kid, but it starts with the name. It's voluntary carbon markets. It's voluntary. What do we need to see more compliance, regulated, required activity?
Well, good luck with that, because you have a president who has taken us away from the Paris Climate Agreement. So how do we get there?
Well, it's interesting. The first speaker at Milkin on Monday morning was Scott Besson, the US Secretary Treasury, and he's talked about the idea of a carbon border adjustment mechanism to match the competitiveness and leveling the playing field for our US companies here in the US compared to the European Sea BAM that has an export. Anytime you export into the European markets, you're gonna have to pay a carbon tax. Do you want to send as a US company?
Do you want to send your tax dollars to Brussels? Or do you want to fund the government activity at the US government? So I do think that there are parts of the US administration today who are serious about carbon as being part of a tariff plan and program.
So do you think you'll seek to renewed interest? I mean, Bloomberg had a great story last week about how a lot of financial cards have actually scaled back to the SG departments. So I sort of saying that they over hire given where we are now. But is this just sort of kind of almost cyclical to a certain extent, and then at some point, I know, if we're talking to you two years from now, it'll just be a totally different story.
I think that you're consistently hearing in sustainable finance. So carbon is being an offshoot of this concept of sustainable finance and sustainable investing. I think you've got clear kind of consensus among institutional investors that climate, carbon other sustainability factors are just a core part of your research function. If you're not focusing on those factors and you're ensuring homes in California, you're missing the vote, You're not doing
your job right. So these factors are critical as part of the research function. Absolutely, But I do think you're seeing a step back, particularly in the venture markets. I think you're starting to see real interest, deep interest in infrastructure project finance, where you're starting to see the technology risk has passed and now you need to deploy and scale. And I think you're seeing billions of dollars being deployed into infrastructure project finance related activities.
Starting call theres so Long War Ago.
Olivia Albrick.
She's the CEO and founder of Arta Meter