Lazard, Inc. · NYSE:LAZ
Lazard — Investor Presentation (September 2022)
12 slides from Lazard's investor presentation, September 2022
Slide 1: A Framework for Developing the Carbon Offsets Market
SEPTEMBER 2022 L A Z A R D C L I M AT E C E N T E R A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET Authors Support Joseph Aldy Zachery Halem Tamsin Nottage Quinn Pitcher Lazard Senior Advisor, Director of the Summer Analyst, Associate, Professor of the Practice of Public Policy Lazard Climate
Slide 2: Executive Summary
A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET Executive Summary • The Lazard Climate Center has issued a working paper entitled “The Evolving Role of Greenhouse Gas Emission Offsets in Combating Climate Change,” which explores the role of offsets in regulatory compliance, as an incentive for
Slide 3: What is an Offset?
A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET What is an Offset? Carbon offsets represent the estimated emission reduction (or removal from the atmosphere) from a project or activity that may be sold to a purchaser – typically corporations – to offset emissions within its corporate footprint
Slide 4: How Does an Offset Get Produced?
A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET How Does an Offset Get Produced? The process to initiate, verify, list, and sell carbon offsets from a project can be time- and resource-intensive. Once a purchaser acquires an offset, there often remains the question of the monitoring of the offs
Slide 5: Growth in the Voluntary Offsets Market
A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET Growth in the Voluntary Offsets Market The voluntary offsets market has seen rapid growth since the start of 2017, tripling in size (in terms of millions of metric tons of CO2 equivalent), and is expected to continue its rapid growth given the mag
Slide 6: What Kinds of Projects Comprise Voluntary Offsets?
A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET What Kinds of Projects Comprise Voluntary Offsets? Offsets projects vary markedly based on the type of marketplace; renewable energy and forestry-related projects comprise over 80% of the voluntary market. Voluntary Market Registries, 2020 Califor
Slide 7: Limitations of the Current Offsets Market
A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET Limitations of the Current Offsets Market The heterogeneity in offset prices by verification standard, geography, type of project, and buyer reflect considerable uncertainty – and variation in methods attempting to reduce uncertainty – about the e
Slide 8: Limitations of the Current Offsets Market (cont'd)
A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET Limitations of the Current Offsets Market (cont’d) Offset prices are characterized by significant heterogeneity across regions and registries, indicative of the challenges surrounding accurately pricing the emissions reductions generated by offset
Slide 9: Toward a More Robust Offsets Market
A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET Toward a More Robust Offsets Market With the objective of improving liquidity, demand, and efficiency within the voluntary offsets market, several factors must be taken into consideration. Topic Overview • In employing financial categorization tec
Slide 10: Policy Implications
A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET Policy Implications Voluntary carbon markets could influence the future development of public policy and future regulatory actions could influence the further evolution of emission offsetting activities and the voluntary market more generally Tran
Slide 11: The Future of Offsets Regulation and Implications for Companies
A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET The Future of Offsets Regulation and Implications for Companies The SEC’s proposed climate disclosure rules, if implemented as proposed, would increase the degree of transparency around corporate usage of offsets that will likely impact how corpor
Slide 12: Disclaimer
A FRAMEWORK FOR DEVELOPING THE CARBON OFFSETS MARKET Disclaimer These materials have been prepared by Lazard for general informational purposes only and they are not intended to be, and should not be construed as, financial, legal or other advice. In preparing these materials, Lazard has assumed and