The global carbon market is expected to reach $22T by 2050 as more companies and investors look for ways to reduce their emissions.
The Paris Agreement is partially responsible for this boom. However, calls for action by world leaders and increased awareness are fueling interest too.
With the UN issuing a ‘code red’ warning and leaders across the globe recommitting to do more for the environment, carbon credits and offsets are a viable solution. The industry combats climate change by reducing greenhouse gases and can help spark economic development around the world.
CBL – Xpansiv is the largest global exchange platform for energy and environmental commodity products, such as carbon, renewable energy, water, and natural gas. And, according to an Ecosystem Marketplace survey that was just released, business is booming.
70.6 million tons of carbon were traded on CBL through August of this year – an increase of 27% from last year. Their market share is currently up 15% from 2020 and 9.4% in 2019.
A record monthly volume of 15,113,044 tons was transacted in August, which is 14% higher than their previous record set in March and 812% higher than transactions in August of 2020. Year-to-date carbon volumes through August totaled 70,623,218 tons (up 291% compared to last year)!
In addition, the adoption of CBL’s GEO and N-GEO VCM benchmarks has grown exponentially, with total volume increasing 29% (2,810,693 tons) in August alone.
Since the beginning of August, both have surged in price, with the GEO rallying from $3.50 to a record high of $7.75 and the N-GEO rising from $5.45 to a record of $8.00.
As carbon markets and projects continue to grow, companies like Xpansiv have shown a dedication to transparent markets, seamless transactions, and high-quality products. With verifications in place and data continuously refined for accuracy, these figures show that the carbon market has real promise and potential.