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illuminem summarizes for you the essential news of the day. Read the full piece on Carbon Credits or enjoy below:
🗞️ Driving the news: The global carbon credit market, valued at $1.4 billion in 2024, struggled with stagnant demand and falling prices, averaging $4.8 per ton
• Despite these challenges, growing corporate climate commitments and new regulatory frameworks hint at significant market expansion
• Projections suggest the market could grow to $7–$35 billion by 2030 and up to $250 billion by 2050
🔭 The context: Carbon credits, representing one ton of CO2 reduced or removed, have been crucial for achieving climate targets, yet the market faces criticism over quality and transparency
• In 2024, over 6,200 projects issued 305 million credits, though retirements plateaued at 180 million
• Concerns about fraud and the credibility of some credits have hindered immediate growth
🌍 Why it matters for the planet: A well-functioning carbon credit market can help bridge the gap between corporate emissions and net-zero goals
• High-quality carbon removal projects are increasingly recognized as essential to limiting global warming
• Advancing market integrity and boosting trust will be critical in making carbon credits a reliable tool in climate action
⏭️ What's next: In 2025, rising demand from sectors like aviation and stricter standards under frameworks such as the Paris Agreement’s Article 6 may boost the market
• Policies like the U.S. transparency laws and the EU’s Green Claims Directive aim to enhance credibility
• By 2050, a majority of the market value could shift to engineered solutions like direct air capture, reflecting technological advancements and increased corporate reliance on offsets
💬 One quote: “As 2030 approaches, the demand for high-quality credits is likely to rise, thawing the frozen market and creating new opportunities for businesses and investors alike.” – Jennifer L
📈 One stat: By 2024, over 2.1 billion carbon credits had been issued globally since the 2016 Paris Agreement, but only 180 million were retired last year
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