This top-down look at the financing needs of the energy transition, decarbonization, and the pathway to net zero is essential when assessing the opportunities for the private sector funding component of the largest investment opportunity of our lifetime.
ITMOs are offsets that count toward a country’s Nationally Determined Contributions (NDCs) and support the overall mitigation of global emissions (for Article 6.4). Being issued by the Senegal government, the credits are of high quality and will demand a significant premium on many existing issues. We discuss the $20m investment going into the National Integrated Waste Management Company of Senegal, which will enable the development of waste management infrastructure at a time when many African governments are budget constrained.
This session dives deeply into the outlook for compliance markets in 2023 and focuses on the challenges facing compliance carbon pricing, such as European energy dislocations, climate policy changes in the United States and the effectiveness of a spluttering Chinese compliance market.
When a prospective buyer approached a group that restores Myanmar’s endangered
mangroves about purchasing the credits used by companies to offset their carbon
emissions, they were told the tokens had sold out.
Spiking gas prices across Europe. Complaints from middle-class families from Madrid to the Midlands. Editorials are written about Europe's over-reliance on Russian gas, yet it flows unabated despite a slew of geopolitical concerns.
The potential size of carbon markets is enormous with McKinsey estimating carbon credits could be worth in excess of $50 billion by 2030 and continue to grow through to 2050 as countries and companies strive to achieve their net-zero goals.
It's possible to support climate projects for their own sake, without offsetting emissions. In everyday language, ‘buying carbon credits’ and ‘offsetting’ are used interchangeably. But they are not the same. To stop greenwashing while increasing funding for climate projects, there is an urgent need to separate the unit, a carbon credit, from the activity, making a climate claim.
While Singapore’s recent announcement that the carbon tax was increasing fivefold understandably gained attention, the acceptance of carbon credits as payment could prove a key next stage in the evolution of these still nascent markets and help drive international investment in the sector.