Currently, companies are limited to purchasing removals, yet projections suggest a booming market by 2050, exceeding $884 billion annually, with prices reaching $172 per ton. With current pricing averaging around $12 per ton, there is a substantial investment opportunity.
The voluntary carbon credits market has witnessed remarkable growth, with predictions indicating a surge from approximately $2 billion in 2020 to around $250 billion by 2050, according to Morgan Stanley. These projections are echoed by industry thought leaders such as Bain, Barclays, Bloomberg, BCG, McKinsey, Morgan Stanley, Nomura, Norway sovereign wealth fund, Shell, Sustainable Capital, The Times, The World Bank and University of Oxford.
''Carbon Offset Market Could Reach $1 Trillion With Right Rules''
The total value of carbon credits produced and sold to help companies and individuals meet their de-carbonization goals could approach $1 trillion as soon as 2037, BloombergNEF finds in a new research report.
''The Voluntary Carbon Market is Thriving''
In 2021, the voluntary carbon market grew at a record pace, reaching $2 billion—four times its value in 2020—and the pace of purchases is still accelerating in 2022. By 2030, the market is expected to reach between $10 billion and $40 billion.
''A Blueprint for Scaling Voluntary Carbon Markets to Meet the Climate Challenge''
Demand for carbon credits could increase by a factor of 15 or more by 2030 and by a factor of up to 100 by 2050. Overall, the market for carbon credits could be worth upward of $50 billion in 2030.
''Where the Carbon Offset Market is Poised to Surge''
The voluntary carbon-offset market is expected to grow from $2 billion in 2020 to around $250 billion by 2050.
''ESG NOW! Carbon Markets Panel Sees Huge Opportunity for Carbon Offset Funds''
The voluntary carbon-offset market is expected to grow from $2 billion in 2020 to around $250 billion by 2050.
''Norway wealth fund posts record $213 bln profit, driven by tech stocks''
Norway's $1.6 trillion sovereign wealth fund, the world's largest, reported on Tuesday a record profit of 2.22 trillion crowns ($213 billion) in 2023, driven by strong returns on its investments in technology stocks.
''Shell and BCG’s new report shows accelerated growth in carbon markets''
In 2022, use of carbon credits continued to grow, with nearly 166 million tonnes of retirements – a record number of retirements. By 2030, the value of the voluntary market is expected to be five times bigger.
''We need $3.5 trillion a year to combat climate change, says former BP boss''
Global governments and private investors will need to plough $3.5 trillion a year into sustainable financing over the next decade to limit the global rise in temperatures to 2 degrees Celsius, a former boss of BP has said.
''Global Carbon Pricing Generates Record $84 Billion in Revenue''
''Oxford Principles for Net Zero Aligned Carbon Offsetting (revised 2024)''
As part of their net zero climate strategies, many companies, organisations, cities, regions, and financial institutions are relying on carbon credits (abbreviated to “credits” throughout) to offset their residual emissions.
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