{"id":2266,"date":"2024-12-30T18:42:27","date_gmt":"2024-12-30T18:42:27","guid":{"rendered":"http:\/\/www.forealis.com\/?page_id=2266"},"modified":"2024-12-31T15:45:28","modified_gmt":"2024-12-31T15:45:28","slug":"voluntary","status":"publish","type":"page","link":"https:\/\/www.forealis.com\/index.php\/voluntary\/","title":{"rendered":"Voluntary carbon markets – current problems and emerging solutions"},"content":{"rendered":"\n

Total cost estimates for 2050 net-zero targets vary a lot – between $110-$240 trillion – but there is clear consensus that public sector alone cannot deliver this. More than 2\/3 must come from private sector. 1<\/a><\/sup> While most adjustment are hoped to come from emission reductions, rapid, forced transitions are always inefficient. Furthermore, in certain sectors total net-zero is simply not possible. Therefore a well-functioning private carbon offset market is critical for the net-zero target, and it can mobilize tens of billions of dollars annually for efficient carbon removal programs.<\/p>\n\n\n\n

Now, while it has vast potential, today the Voluntary Carbon Market (VCM) is at best around $ 2-3 billion – a number several magnitudes too small. 2<\/a><\/sup> The simple reason is that this \u201cmarket\u201d simply does not function \u2013 it is not a credible marketplace.<\/p>\n\n\n\n

Today\u2019s carbon offset platforms are unregulated, highly fragmented, and merely arrange transactions by appointment, rather than acting as a marketplace. This means that today\u2019s carbon credits have highly<\/em> varying quality, their prices are opaque and volatile, and most buyers remain unwilling to commit due to concerns about quality, credibility and legitimacy.<\/p>\n\n\n\n

Therefore, as with all markets, what is needed is standardization and good governance. IN carbon credits this is particularly important as the underlying is intangible and very hard to measure.<\/p>\n\n\n\n

First requirement is on the demand side: standardize emission measurements, reduction targets and their communication<\/strong>.<\/p>\n\n\n\n

Second requirement is on the supply side: <\/p>\n","protected":false},"excerpt":{"rendered":"

Total cost estimates for 2050 net-zero targets vary a lot – between $110-$240 trillion – but there is clear consensus that public sector alone cannot deliver this. More than 2\/3 must come from private sector. While most adjustment are hoped to come from emission reductions, rapid, forced transitions are always inefficient. Furthermore, in certain sectors … <\/p>\n

Continue reading “Voluntary carbon markets – current problems and emerging solutions”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":"[{\"content\":\"USD trillion total by 2050: Energy Transition Commission: 109, World Economic Forum: 125, BloombergNEF:182, McKinsey:239. \",\"id\":\"61d6bf9e-7ee0-47db-a03d-89902393126c\"},{\"content\":\" 2021 market estimates: Boston Consulting Group: $2 billion, Morgan Stanley: $ 2 billion, Ecosystem Marketplace: $ 2.7 billion. Climate Focus $ 3.5 billion. \",\"id\":\"8f9bf380-02af-45b6-9dcc-f376f5011a9b\"}]"},"folder":[30],"class_list":["post-2266","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.forealis.com\/index.php\/wp-json\/wp\/v2\/pages\/2266","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.forealis.com\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.forealis.com\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.forealis.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.forealis.com\/index.php\/wp-json\/wp\/v2\/comments?post=2266"}],"version-history":[{"count":22,"href":"https:\/\/www.forealis.com\/index.php\/wp-json\/wp\/v2\/pages\/2266\/revisions"}],"predecessor-version":[{"id":2325,"href":"https:\/\/www.forealis.com\/index.php\/wp-json\/wp\/v2\/pages\/2266\/revisions\/2325"}],"wp:attachment":[{"href":"https:\/\/www.forealis.com\/index.php\/wp-json\/wp\/v2\/media?parent=2266"}],"wp:term":[{"taxonomy":"folder","embeddable":true,"href":"https:\/\/www.forealis.com\/index.php\/wp-json\/wp\/v2\/folder?post=2266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}