HomeCarbon CreditsCarbon Credit Market to Reach $100 Billion a Year By 2050

Carbon Credit Market to Reach $100 Billion a Year By 2050

The Institute of International Finance’s CEO believes voluntary carbon credits have great upside potential and projects the market may be worth up to $100 billion per year by 2050.

Governments and corporate leaders are under increasing pressure to deliver on pledges made as part of the historic Paris Agreement in advance of this year’s COP26, which will be hosted in Scotland, in early November.

The Taskforce on Scaling Voluntary Carbon Markets (TSVCM) released the second phase of its roadmap for developing a large-scale and transparent carbon credit trading market recently.

According to the TSVCM, it will enable more companies to put their net-zero promises into action by investing in emissions-reduction projects, where they believe it would have the greatest impact.

The private-sector-led project, established last year by former Bank of England governor Mark Carney, believes a broad-based carbon market is “essential” to limiting global temperature rise to 1.5 degrees Celsius above pre-industrial levels – the global aim outlined in the Paris Agreement.

Carbon credits are permits that allow a corporation to emit a specified quantity of greenhouse emissions. They are intended to provide a financial incentive for high-polluting businesses to reduce their pollution.

The voluntary carbon offset market is distinct from cap-and-trade programs such as Europe’s flagship Emissions Trading System (ETS), which has a finite carbon budget and allows emitters to sell allowances.

Companies in the voluntary market, on the other hand, are more likely to be attempting to reach internal targets to decrease their carbon footprint.

The TSVCM had previously stated that in order to fulfil the Paris climate objectives, the voluntary carbon market would need to increase 15-fold and might be valued up to $50 Billion by the end of the decade.

SourceCNBC
Most Popular
LATEST CARBON NEWS

Humanity is on Thin Ice Says UN Climate Report

The UN Intergovernmental Panel on Climate Change (IPCC) released its 6th Assessment Report with a key message that the planet is running out of...

Will Big Oil Be Forced to Pay for Climate Damages

The U.S. Department of Justice sided with Colorado's local governments, which is the most recent case of a growing wave of governments pushing for...

The EU Net-Zero Industry Act Explained

The European Commission (EC) proposed the Net-Zero Industry Act to ramp up manufacturing of clean technologies in the EU and make the bloc prepared...

Carbon Credits from Efficient Railways

EKI Energy Services Ltd. (EKI) has made a deal to provide consultancy service contracts for the carbon credits project of Kochi Metro Rail Limited...
CARBON INVESTOR EDUCATION

What are Renewable Energy Credits vs. Carbon Credits

Also known as green tag, the use of renewable energy credits (RECs) have been on the rise as entities are looking for ways to...

Wood Vault: a Carbon Storage System to lock CO2 away

Removing carbon dioxide through dead trees and storing it for thousands of years underground is a mission that seems to attract nobody. But a...

How Do Carbon Offsetting Projects Work?

All companies will have to take responsibility for their carbon footprint and carbon offsetting projects are becoming their strong ally.  A business may have already...

Inside Carbon Markets: Problems, Causes, and Potential Solutions

The recent scandals in the carbon markets show that just like other markets with contested reputations, rules are needed that go beyond certification. There should...