ESG & Investing
Morgan Stanley Sees Tipping Point in CO2 Credits as Prices Sink
- Market in wait-and-see mode amid efforts to aid VCM integrity
- Millions of offsets are now being treated as stranded assets
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The market for carbon offsets is approaching a “material tipping point” following months of bad news that’s spooked investors, according to an analysis by Morgan Stanley.
The voluntary carbon market (VCM) has been gripped by a steady stream of scandals, leading to wild price swings and even collapsing valuations. That has implications for firms trading such credits, which have been saddled with vast piles of stranded assets, as well as for the companies using them to underpin green claims to customers and regulators.