HomeCarbon NewsCarbon Prices to reach $360 by 2030

Carbon Prices to reach $360 by 2030

According to a report by Getting to Zero Coalition, carbon prices might reach $360 per tonne by the 2030s.

The Getting to Zero Coalition is a collaboration of the Global Maritime Forum, Friends of Ocean Action, and the World Economic Forum.

Carbon dioxide currently accounts for 98 % of shipping GHG emissions.

The addition of LNG-powered tankers may cause carbon credit prices to soar even further.

LNG produces methane gas which has 25 times the emissions as carbon dioxide.  So one metric ton of Methane is equivalent to 25 carbon credits.

The 25x is conservative and based on a 20-year time frame. Over a 100-year timeline, methane can have over 80 times the equivalent emissions as CO2.

The report analyzes two scenarios in which emissions are lowered by 50% or 100% by 2050.

In each case, a carbon price is implemented beginning in 2025, with GHG emissions peaking in 2030.

To achieve a 50% decrease in GHG emissions by 2050, the carbon price level should average $173/tonne CO2.

In the event of complete decarbonization, the average carbon price would be roughly $191/tonne CO2.

In both scenarios, the price level begins at $11/tonne CO2 when introduced in 2025 and ramps up to around $100/tonne CO2 in the early 2030s, at which point emissions begin to decline.

The carbon price subsequently rises to $264/tonne CO2 in the -50% scenario and $360/tonne CO2 in the -100% scenario.

Last year, the Intergovernmental Panel on Climate Change, a body of scientists and others from 195 countries, warned that methane was a crucial component of LNG and that it needed to be reduced if the Paris targets of keeping global warming to 1.5 degrees Celsius or less were to be fulfilled.

 

Most Popular
LATEST CARBON NEWS

What Does the U.S. Need to Triple Its Nuclear Capacity by 2050? DOE Explains…

To hit its 2050 decarbonization targets, the U.S. is focused on tripling its nuclear power, adding over 200 GW of new capacity. Net-zero models...

The Net Zero Game: Are Hotels and Restaurants Truly Committed to Reducing Carbon Emissions?

With their substantial energy consumption and carbon emissions, hotel and restaurant chains are becoming key targets for reducing greenhouse gas (GHG) emissions through improved...

U.S. DOE Invests $1.5 Billion to Bolster the Electricity Grid with Clean Energy

The U.S. Department of Energy (DOE) is taking major steps to boost the nation’s power grid, aligning with the Biden-Harris Administration’s Investing in America...

Google Speaks: Why Nuclear Energy Could be The Big Tech’s Next Bet

Google is considering nuclear energy as a potential solution to meet its ambitious 2030 net-zero emissions goals, according to CEO Sundar Pichai. In a...
CARBON INVESTOR EDUCATION

Carbon Credits vs. Carbon Offsets

Carbon Credits vs. Carbon Offsets: What's the Difference? At their core, both carbon credits and carbon offsets are accounting mechanisms. They provide a way to...

Who Verifies Carbon Credits?

Carbon credit verification is a rigorous process that involves various steps to ensure the legitimacy of the credits.

The Ultimate Guide to Understanding Carbon Credits

Everything you need to know about carbon credits, voluntary and compulsory carbon markets, and carbon investment...

Top 4 Carbon Stocks To Watch In 2024

Carbon stocks, credits and capture technology are getting a lot of interest from investors. Companies will attract even more capital in 2023.