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illuminem summarizes for you the essential news of the day. Read the full piece on FinTech Global or enjoy below:
🗞️ Driving the news: The voluntary carbon market (VCM) is expected to hit a milestone, with projections suggesting it could reach a $3bn valuation in 2024
• BeZero Carbon, a carbon ratings agency, forecasts over 250 million carbon credits may be retired this year, indicating a significant market growth and a shift towards higher quality carbon credits
🔭 The context: After a period of stagnation since 2021, the VCM is showing signs of a robust recovery, driven by the implementation of CORSIA's initial phase and the development of the IC-VCM's Core Carbon Principles
• The market's valuation currently stands at about $2bn annually, with the use of ratings expected to further enhance its growth
🌍 Why it matters for the planet: The expansion of the VCM is crucial for financing climate transition efforts
• The increasing demand for high-quality carbon credits, demonstrated by a preference for credits rated BBB or above, reflects a maturing market that prioritizes effective and verifiable climate action
⏭️ What's next: The VCM's trajectory towards growth highlights its potential to become a multi-billion-dollar market
• This resurgence is pivotal for channeling capital towards impactful climate solutions, with BeZero Carbon's ratings system playing a key role in guiding investment decisions within the market
💬 One quote: "Scaling carbon markets is crucial to help finance the climate transition, and our ratings are having their desired effect — helping market participants to make decisions about how to direct capital to where it can have the greatest impact," said Sebastien Cross, co-founder and Chief Innovation Officer at BeZero Carbon
📈 One stat: The VCM could see over 250 million carbon credits retired in 2024, potentially elevating its value to $3bn
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