Nasdaq has just published a report titled ‘2024 Global Net Zero Pulse’, which demonstrates some of the major changes that the voluntary carbon market (VCM) has undergone in the last year.
This report examines the results of a survey primarily focused on corporate carbon credit buyers.
It delves into how the market for durable carbon removal credits has evolved over the past year and the role these credits play in net zero strategies. The aim is to bridge knowledge gaps and provide valuable insights to stakeholders in the carbon market.
Carbon removal credits take center stage
Carbon dioxide removal (CDR) remains an essential tool in corporate net zero initiatives. To effectively leverage the VCM as a financing mechanism for CDR, a thorough understanding of buying preferences is crucial.
Building upon last year’s Nasdaq Global Net Zero Pulse survey, this year’s report explores how the VCM has changed in the past 12 months.
Relevant: Nasdaq Launches New Digital Carbon Credits Service
Key themes analyzed include corporate net zero alignment, carbon credit purchase strategies, and carbon market dynamics.
Key Findings:
- Demand for Durable CDR: Despite market uncertainties, there’s a clear need for durable CDR to achieve net zero goals.
- Carbon Credit Integration: Respondents view carbon removal credits as integral to their net zero strategies. A significant majority (57%) plan to invest in nature-based and technology-based carbon removal solutions.
- Strategic Procurement: Companies are developing carbon credit strategies aligned with their sustainability goals and targets.
- Rigorous Evaluation: Corporate buyers are concerned about greenwashing and prioritize MRV, cost, and permanence when evaluating carbon removal credits.
- Regulatory Impact: The evolving regulatory landscape is influencing corporate approaches to carbon credit procurement.
- Education Gap: Familiarity with carbon removal credit types varies, highlighting a need for corporate education, particularly in ocean-based CDR.
Overall, the report underscores the growing importance of carbon removal credits in achieving net zero goals while emphasizing the need for informed decision-making and a robust regulatory framework.
Read more: 30% Of VCM Projects Ineligible For ICVCM High Integrity Label
