A bunch of readers have asked me about the latest Marin Katusa pitch about decarbonization and a new carbon-credit economy, so we’ll dig into that a little bit today.
Marin Katusa has talked up carbon credits and taxes before, I recall… back when he was still Doug Casey’s mining newsletter guy, a decade ago, he was certain that President Obama would be implementing a carbon tax. And I guess that was the last heyday for carbon credit investing ideas, before the current surge in interest.
This new “presentation” is quite different, though, cheerleading the profit potential for investors who can benefit from this move to cut carbon emissions and “green” the planet. The ad I saw appears to be built mostly on top of an interview that Katusa did with his old Casey colleague Olivier Garret at Mauldin’s Strategic Investment Conference a couple weeks ago (there are notes here from one of the conference attendees, if you’re curious, I didn’t go to this confab).
He makes some good arguments for the future value of carbon credits in the pitch, essentially arguing that we’re finally reaching the tipping point where companies are beginning to invest heavily and make real climate plans, and where consumers and governments are pushing for faster movement to meet the Paris Climate Accord limits on emissions and whatever other “ratcheting up” of emission limits we agree to next.
I’d generally agree, though I don’t know specifically what the best plan or technique for helping us reduce emissions is. My general thinking is that the clearest path to getting to lower emissions is to engage global capitalism by putting a much higher price on emissions… and therefore heavily incentivizing the next generation of businesses, inventors and entrepreneurs to develop new ways to reduce atmospheric carbon or otherwise clean up the planet. Self interest and profit tend to drive change a lot faster than big-picture thinking and the impulse to “do good.”
But I digress… there must be an investment idea in here somewhere, right?
Here’s a little taste of the ad, which is selling subscriptions to Katusa Resource Opportunities (currently $2,500/yr, limited partial refund policy):
“The Global Race to Net Zero is Just Getting Started:
“If You Missed Amazon in 2012… or Bitcoin in 2017… DO NOT Miss Being Early in This Sector….
“We’re on the brink of an all-out, no-holds-barred, Global War on Carbon Emissions.
“Relive the Dotcom Boom Play by Play by Investing in a Whole New Global Economy…
“World War III begins in November 2021…
“With a conference called ‘COP 26’.”
Perfect for a newsletter tease… you get the big picture FOMO (don’t miss Bitcoin in 2017!), and you get to throw in a deadline with that November 2021 “World War III” reference. FOMO and urgency are what drive speculation, and that’s not wasted on the best ad copywriters. And yes, the next UN Climate Summit, called COP26 (“COP” is “Conference Of the Parties,”) will be in Glasgow in November.
More from Katusa, to give a little context:
“The Paris Agreement is the Geneva Convention of the 21st century. Only instead of protecting soldiers… it’s protecting the planet.
“And countries that violate the agreement will be met with similarly harsh penalties.
“Two things are going to happen at the conference that is a global first.
“It’s the first ‘global’ for the Paris Agreement. Every member state will have to re-evaluate their progress against their commitments.
“Current estimates are that they’ll find out they’re not even on track to limit global heating to 3 degrees Celsius (but you already knew that).
“Bottom line: Most countries are in a war against time.”
And he paints a dire picture for those who aren’t prepared:
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“Countries that fall behind will be unable to catch up… so like all other major wars, this one will completely change the shape of the globe.
“Entire countries will rise and fall based on the rise and fall of their carbon emissions.
“This isn’t a race to the top… it’s a race to the bottom.
“Every country in the world will fight with whatever it takes to be the first to ‘net zero.'”
So… what’s he teasing? We get very few clues, but the idea is basically that he has found a “Carbon Reduction Royalty” company, here’s how he puts it:
“Well, I’ve discovered a company in the net-zero space that’s like a royalty and a streaming company… on steroids….
“Back in 2007, I participated in the financing of Sandstorm Gold (another royalty company I was among the first to publish on).
“Within five years, the company returned over 1,800% to early shareholders.
“The royalty business is a proven model that routinely hands early investors 2x, 5x, and even 10x long-term gains.
“And no one else but the company I’ve identified is doing it in this market.
“As the company CEO said…
‘There’s Nobody Playing in Our Sandbox Yet'”
Katusa also says that “I’m putting a significant amount of my own money into this particular play.R