Carbon markets are the ‘net in net zero.’ They are a vital component in delivering the call to action Antonio Guterres, UN Secretary General, demanded at the launch of the IPCC Sixth Assessment report in March: “Our world needs climate action on all fronts: everything, everywhere, all at once.”
Research is now proving the vital role of carbon credits in transitioning to a zero carbon economy. Earlier this year, separate studies from Trove Research and Sylvera showed that companies using offsets are more likely to have already started on their internal decarbonisation than their peers who do not use offsets. And earlier this month, Ecosystem Marketplace released research (here) to back up those findings, concluding that those engaged in the voluntary carbon market are almost twice as likely to be on the path to net zero.
Despite the weight of research, there are still many credit deniers who have created confusion and doubt. That is why we’ve partnered with Bloomberg to create a whitepaper aimed at the ‘carbon curious.’ Our goal is to show the importance of carbon credits in the transition to a net zero economy and make it clear just how easy it is for organisations – particularly in hard-to-abate sectors – to use offsets as part of their journey to net zero.
The key takeaways from the report – which you can download here – are:
- Global temperatures are on track for 3C of warming this century (https://unfccc.int/documents/631600). More action, more quickly, from governments, businesses and NGOs is required to limit global warming to 1.5C
- Carbon markets are endorsed by the United Nations as an essential part of achieving the world’s climate targets; and ‘voluntary’ carbon markets are expected to scale by at least 100x over the next decade (TSVCM et al)
- Carbon prices will rise dramatically as ambitious emissions reduction commitments are met, and disparate markets converge
- Accessing carbon credits has never been easier either as an investor or for use as offsets. New safeguards are being put in place to bolster confidence in the carbon market
- Investors – including some of the world’s largest asset managers, family offices and High Net Worth Individuals – are taking steps to enter the carbon market
- Early adoption is the key to success: organisations who take a ‘wait and see’ approach will face significantly increased carbon prices, higher risk and lower returns
Now is the time: carbon markets are cleared for take-off.
