Carbon is one of the world’s most mispriced assets. At today’s market rate of just a few dollars per tonne in the voluntary market, exponential growth is bound to happen in the next few years in order for prices to drive the behaviour to meet net zero goals. This is not just supposition; it is the carefully considered opinion of some of the world’s leading institutions, including the World Bank.
We are seeing the early signs of that, driven by two factors. Firstly, there are systemic changes afoot as the voluntary carbon market converges with the compliance market.
Secondly, we are seeing demand at both government and company levels starting to accelerate. This is evidenced by large credit auctions in the Middle East and Singapore last week and the introduction of carbon taxes, and cap and trade schemes on an almost weekly basis. We are also seeing increased net zero commitments registered on SBTi and other corporate climate registries….
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