Should You Invest With Hedonova’s Carbon Credit Strategy: Performance Review

How about an industry producing top-notch quality equipment but using older practices for these processes? Well, unless and until it meets customer quality standards, everything works fine, but there are restrictions about the Carbon Dioxide emissions for it.

Here's where Carbon Credits are allotted to them. However, such industries fall short of credits while some provide Carbon Offsets. Carbon Credit Investments Hedonova bridges this gap.

If you were reading about rounds of it on the internet, you would wonder how it will benefit you! Here's where I have covered you all.

What is Carbon Credit Strategy Investment?

Carbon credits refer to pay slips that companies get to emit a unit of carbon dioxide in the air. These credits reduce with time as the motive is to enforce strategies on companies that help them reduce carbon dioxide. To be precise, the unit is one ton.

Besides, older companies or those using older practices emit more significant Carbon dioxide, and it is challenging to emit it only using credits. Hence, they face difficulty, creating more investment opportunities, and carbon credits are traded in the markets.

The following are the ways you can invest in Carbon credits:

• Carbon Credit ETFs: These are funds through which you can track carbon market performance. Using these, investors can know when the carbon credit price fluctuates and can accordingly choose to invest.
• Carbon-Credit Futures: There's an option for Carbon contracts that lets you buy credits in the future at a specified price/date. These are available for trade on selected platforms, and you can restrict price modifications.
• Carbon Offset Companies: You can invest in companies that create carbon credits by beginning emission reduction projects. These are known as Carbon Offsets, and firms sell geese to those who need it. As an investor, you can invest in their projects via Hedonova.

This new way of investing in Carbon credits would help you diversify your portfolio, align investments with better ROI, and combat climate change.

But as compared to conventional investment in stocks and bonds, this is a bit tricky for everyone to understand its trade. Here's where you can invest in Hedonova's Carbon credits strategy.

What is Hedonova’s Carbon Credit Strategy?

Hedonova, an SEC-regulated fund offers diversified investment options not confined to only stocks and bonds. One such aspect is the Carbon Credit Strategy, which, though anyone else can also provide, this platform aces with grace.

Hedonova first assesses how its carbon credit investments are performing using the following indicators:

1] Net Internal Rate of Return (Net IRR)

The Net IRR parameter demonstrates Hedonova's annual earnings from Carbon Credit investments after fees.

2] Alpha

Alpha refers to the extra returns the Carbon credits would return compared to the S&P 500. This parameter reveals how Hedonova adds value to Carbon Credit Investment.

3] Compound Annual Growth Rate (CAGR)

CAGR is the rate of Hedonova's carbon credit portfolio growth yearly on average.

4] Emission Reductions

Emission reductions refer to the amount of greenhouse gases Hedonova's Carbon Offset projects eliminate from the air.

Evaluating these parameters for Hedonova's Carbon Credit Investment of FY 2022-2023, the following are the statistics obtained:

Parameter	Amount
Net IRR	18.5%
Alpha	8.7%
CAGR	16.2%
Emission Reduction	12.4 million tons

The figures are proof that Hedonova's investments were successful. It performed pretty well in other markets as well.

So, let's compare it with other investments:

• S&P 500: This is the standard stock market measure that evaluates the performance of top 500 US companies across different fields. According to this, Hedonova performed exceptionally well regarding growth and extra returns.
• Voluntary Carbon Market Index: It is a market that tracks Carbon Credit prices. According to this, Hedonova outshined and performed better in this market.
• Average of Other Investment Managers: On comparing Hedonova's performance with other Investment Managers who deal with varied assets, it stood out as competitive.

These statistics reveal that Hedonova's investment strategies are top-notch in other assets. But you might be wondering whether investors have benefited from Carbon Credits or not, how much they succeed in its projects! The following section has covered you all with it!

How Has Hedonova's Carbon Credit Strategy Performed: A Case Study

Over time, Hedonova has invested a lot in Carbon credit projects, which turned out well.

Some of the remarkable ventures include:

1] Alto Mayo Protected Forest (Peru)

Project Brief: The project aimed to preserve and restore the Amazon rainforest. The aim was to help more than 240,000 locals and to protect endangered plants, animals, and other species.

Investment: Hedonova invested $10 million in it in 2018.

Performance: Hedonova earned $15 million in Carbon Credits up to 2022. Further, it prevented 4.2 million tons of carbon dioxide emissions, protecting the community.

2] Bundled Wind Power (India)

Project Brief: Reduce fossil fuel usage and create the scope of green jobs by setting up 200 Wind turbines.

Investment: Hedonova invested $20 million in 2019.

Performance: Hedonova earned $25 million in Carbon Credits in 2022. Further, it reduced 2.7 million tons of Carbon dioxide emissions. All of it significantly improved the country's Energy reserves.

3] Landfill Gas To Energy (Brazil)

Project Brief: The project aimed to convert Landfill Methane gas into electricity, thereby enhancing Sanitation and reducing hazards.

Investment: Hedonova had invested $15 million in 2020.

Performance: In this project, Hedonova earned $18 million in Carbon Credits in 2022. Plus, it reduced 5.5 million tons of emissions and even supplied clean power to the community.

These case studies specify how it strategically generated profits in its Carbon Credit investments. Apart from economic benefits, the projects have proved to be an asset to the population as well. The firm's expert team doesn't invest in any random project but carefully evaluates the profits and risk rate.

Why Invest in Hedonova's Carbon Credit Strategy?

You would wonder why you should invest in a Carbon Credit Strategy via Hedonova. It's apparent to think of the benefits when you invest in your assets.

There are various reasons why we think it would be a wiser choice:

1] Significant Returns

Hedonovas Carbon Credit investments have generated a 130% ROI, and hence, there is a potential scope in this sector.

2] Expert Market Approach

Hedonova's team uses significant strategies to unleash enemies from market prices. It evaluates the demand and difference in Carbon Credits and Offsets. Thus, it takes wiser decisions about which project they should invest in. This presents significant trading options.

3] Success and Profits

Hedonova has invested in projects like reducing greenhouse gas emissions from rice cultivation in Vietnam. This generated 18.04% profits upon selling these Carbon Credits in Europe.

4] Low Investment Options Available

You can begin investment with lower amounts as well and earn returns. Thus, you get a safe platform to invest in Carbon Credits.

5] Environmental Impact

When you invest with Hedonova, you also support green initiatives that help combat climate change. Hedonova invests in projects that reduce, avoid, and eliminate greenhouse gas emissions, especially Carbon Dioxide. These align well with the Paris Agreement.

Thus, investing in Carbon Credits is beneficial and provides financial benefits.

The Bottom Line

If you were looking to invest in Carbon Credit investments with Hedonova, then you would have got your answer! When you invest in Hedonova beneath the Carbon credits portfolio, you indirectly invest in its projects with a good environmental impact. Through these projects, Hedonova earns Carbon credits and, upon its sale, earns significant returns.

Through better ROI, a positive environmental impact, and helping industrial activities, Hedonova has stood competitive and profitable for its investors.

(This article is part of IndiaDotCom Pvt Ltd’s Consumer Connect Initiative, a paid publication programme. IDPL claims no editorial involvement and assumes no responsibility, liability or claims for any errors or omissions in the content of the article. The IDPL Editorial team is not responsible for this content.)