BeZero: Voluntary Carbon Market Could Reach $3B Value In 2024

BeZero: Voluntary Carbon Market Could Reach $3B Value In 2024 - Carbon Herald

Carbon ratings agency BeZero Carbon published new research projecting a record year of growth in the voluntary carbon market (VCM), with a potential 250 million carbon credit retirements made in 2024. 

With the market currently estimated to be worth around $2bn a year, this growth trajectory could see the VCM reach a possible $3bn value this year. 

Following a challenging two years in which market growth has stagnated, this research suggests that the market could make a return to its pre-2022 growth levels. 

It is anticipated that the scaling of the market will be supported by the launch of the first phase of CORSIA, and the ongoing work on the IC-VCM’s Core Carbon Principles — as well as by the widespread and continued adoption of ratings across the market. 

BeZero Carbon rates carbon credits on an eight-point scale to determine the likelihood that they will remove or avoid a tonne of carbon. 

This research supports work published earlier this year, which found that a correlation between price and quality was developing in the market, with higher quality credits commanding higher prices.

Relevant: Bezero Carbon And General Index Partner To Marry Carbon Credit Quality With Price

Today’s paper also reveals that credits rated BBB or above (at the higher end of BeZero Carbon’s rating scale) are for the first time being retired at a greater scale than those with a BB and lower rating. 

This further suggests that ratings are continuing to drive up demand for higher quality projects, and that quality is a crucial factor influencing investment decisions across the market. 

Sebastien Cross, co-founder and Chief Innovation Officer at BeZero Carbon, said: “It’s encouraging to see the return of growth to the voluntary carbon market — if the rest of 2024 continues on this trajectory the market will be back on track to realise its multi-billion-dollar potential. 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.”

Read more: BeZero: Higher Quality Carbon Credits Command Greater Price Premiums

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