Negotiating Royalties and Carbon Credits

Royalty negotiations and carbon credit pricing have become complex for investors and companies managing risks, leading to diversification in portfolios. Countries have recognized the value of their natural assets in reducing carbon emissions at lower prices compared to the West, as seen in the Paris agreement's Article six encouraging cooperation. However, some markets have been nationalized, with governments imposing regulations to claim a significant percentage of carbon credits. This has increased investment risks and project development complexities. The market is currently grappling with determining the willingness to pay for voluntary credits and the types of credits deemed acceptable for corporate claims.