If you believe you were mis-sold carbon credits, you’re certainly not alone. With many carbon credit investments falling far short of expectations, pension savers all over the UK have lost their hard-earned money.
Here we take a look at what exactly carbon credits are, how to avoid carbon credit trading scams and what to do if you are affected by mis-sold carbon credits.
What is a carbon credits SIPP?
Carbon credits were designed to reduce the emission of greenhouse gasses into the atmosphere. The environmentally-friendly approach allowed high-pollutant companies to sell credits in exchange for an emission allowance, meaning they were only permitted to emit a certain amount of greenhouse gases into the atmosphere. At first glance, it’s easy to see why many investors were attracted to the scheme.
Carbon credit trading scams explained
This climate-friendly approach to investing was favoured by many pension investors who were promised large returns on their investment in time. However, the scheme fell flat after carbon credits rapidly decreased in value, and many companies abused the scheme. Carbon credits were designed to be traded for money, but many investors soon found they couldn’t sell or trade their credits and could therefore make no profit.
One of the largest traders offering carbon credits, Worldwide Commodity Partners, claimed they would make the world a better place by changing the way the corporate world works. However, the company actually sold carbon credits at inflated prices, which ultimately resulted in the company entering liquidation in 2014.
Worldwide Commodity Partners were just one of 13 similar companies that were closed down at the same time, leaving many investors without the money they invested – and zero returns.
How do I know if I was mis-sold carbon credits?
Such carbon credits were considered a high-risk investment and are not regulated by the FCA, meaning they shouldn’t have been offered out to casual, inexperienced investors (like most pension investors). However, as we know, that was certainly not the case.
You may have also been mis-sold your carbon credits SIPP if you felt pressured into the scheme, were not made aware of any fees beforehand or the risks were never adequately explained to you.
Getting started with your carbon credits claim
Don’t worry if you were affected by carbon credits; our friendly and professional team are here to help. Whatever amount you invested into a carbon credits scheme, it is likely you are eligible for compensation.
To get started with your claim, please fill out a quick assessment form on our homepage to assess your eligibility. We’ll then send you a simple claims form to get the process started. From here, we’ll take care of the rest. We’ll contact your SIPP provider on your behalf, putting forward your mis-selling case. If necessary, we will even escalate the case to the Financial Ombudsman.
If you have any questions in the meantime, please do not hesitate to get in touch. Our team is here to help with any queries you might have. If you prefer, you can call us directly on 0800 849 5078 or 0161 968 0768.
