Exotic

AMC on Blue Economy Carbon Assets

Note: GenTwo is a platform provider for structured products. This information is intended for professional investors only.

What is this product?

An actively managed certificate (AMC) providing institutional investors with exposure to investment-grade blue economy carbon credits. These are assets that are generated from ocean and coastal ecosystem projects addressing the least-funded UN Sustainable Development Goal. SDG14 Life below water, whilst least funded, is of the highest socio-economic and geopolitical significance. An estimated investment of USD $175 billion is needed annually for the maritime economy to become sustainable and inclusive, with stronger cooperation of the private sector, governments, intergovernmental organisations, and civil society urgently required.

How does it work?

The certificate tracks a curated portfolio of investment-grade blue carbon credits (institutionally Rated A or above) acquired through four strategies: spot purchases, forward contracts at discounts up to 60%, Article 6 sovereign agreements, and deeply discounted rights issuances (discounts up to 80%) - all held in a blockchain-enabled regulated digital custodian with complete ‘source-to-sale’ transparency. The structure provides institutional investors with access via a fully regulated architecture to this high-growth, uncorrelated asset class while eliminating the project risk that has historically kept pension funds and asset managers from direct participation. It is designed to drive the volume and velocity of institutional capital required into a carbon market expected to grow collectively from USD $933 billion in 2025 to approximately USD $16.4 trillion by 2034, at a compound annual growth rate (CAGR) of greater than 37%.

What's the underlying asset?

Blue carbon credits represent verified emissions reduction reductions, removal or avoidance from ocean and coastal ecosystem projects such as mangroves, seagrass, and marine conservation. These credits command premium prices due to their dual impact on climate and marine biodiversity. The AMC focuses exclusively on the highest-integrity credits: those with ex-post institutional ratings of A or above by agencies like BeZero, Sylvera, or Calyx Global, sourced from compliance markets (Article 6, EU ETS) and top-tier voluntary programs (Verra, Gold Standard). Blockchain technology provides unprecedented transparency through digital custody at SECDEX, where every asset's provenance, attributes, and movement are permanently recorded - eliminating the risks of double-counting and greenwashing that have plagued carbon markets.

The AMC has already acquired the world’s first highest integrity and certified Blue Mediterranean Blue Credits registered to the French Government’s Label Bas Carbone (LBC), from the Elyx Foundation – a renowned premium international asset.

Blue economy projects need $175 billion annually to meet 2030 targets but currently receive only $5-10 billion, while carbon credit prices are forecast to surge from $7-20 today to $150-160 per ton by 2030—a growth opportunity at its very beginning with 650% increase in climate action frameworks since 2000 despite political headwinds.

Who's behind it?

Strategy manager Shire Capital (South Africa, FSCA-regulated) actively manages the portfolio. The AMC was developed by Professor Lisa Wilson, a climate science and blockchain specialist, in partnership with Orpheus Capital. The product is issued through Calliope SPC with InCore Bank AG as paying agent and SECDEX providing blockchain-enabled digital custody for complete asset transparency.

What kind of instrument is this?

An Actively Managed Certificate (AMC) is a structured product where the issuer actively selects, adjusts, and rebalances the underlying assets based on market conditions and strategy. Investors gain exposure to this managed portfolio through a certificate rather than owning the underlying assets directly.