What’s next for carbon markets?
The carbon markets are experiencing rapid growth. The voluntary markets are expanding due to unprecedented demand from corporate buyers and a related boom in issuing new credits. The compliance markets are growing via increased allowance prices and soon also through the emerging Paris Agreement market. All the while, the two markets are increasingly converging, and the voluntary market is bound to go through substantial changes. Will there be a competition between voluntary and compliance buyers for the same credits? The next years will show. Eventually, the carbon markets will become carbon removal markets.