Why All Carbon Credits Aren’t Created Equal
The market needs improved transparency about how successful projects really are in curbing emissions.
The market for voluntary carbon credits needs to improve its transpacency.
Photographer: Jeff J Mitchell/Getty Images EuropeThe market for voluntary carbon credits has been on a roll. In 2021, it grew to $2 billion, quadrupling in a year. Boston Consulting Group, a management consulting firm, expects it to be worth somewhere between $10 billion and $40 billion by 2030. Carbon credits offer an easy way for businesses to amp up their green credentials and funnel much-needed finance into environmental projects, often in developing nations.
But prices and volume have fallen since the start of the year. Nature-based carbon offsets are now trading at $1.84, having fallen 60% since the start of the year. A tough macroeconomic environment has been blamed, as well as increased public and media scrutiny.