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Why voluntary carbon markets for nature are needed right now

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on World Economic Forum or enjoy below

🗞️ Driving the news: The voluntary carbon market has been recognized as a pivotal instrument for companies to address emissions, annually channeling billions in private finance

🔭 The context: While the voluntary carbon market represents a significant financing mechanism, over the past three years, it has tapped into merely 1.2% of the potential of nature-based solutions (NbS)
• The misleading view of carbon credits as an 'either/or' choice limits their potential, implying companies must pick between them or direct decarbonization efforts

🌎 Why does it matter for the planet: Addressing the dual challenges of nature loss and climate change necessitates a multi-faceted approach
• The planet's urgent state requires companies to adopt a dual strategy, focusing on both internal emission reductions and NbS credit investments, rather than choosing one over the other

⏭️ What's next: Companies are embracing a holistic approach, with those purchasing carbon credits achieving quicker emission cuts
• Meanwhile, organizations like the Integrity Council are bolstering the voluntary carbon market's transparency and consistency

📈 One stat: In 2021, the global voluntary carbon market's value surpassed $1 billion, with predictions pointing to an annual worth of between $5-30 billion by 2030

Click for more news covering the latest on carbon

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