Achieving the goals of the Paris Agreement is critical, yet national climate pledges fall short.
To reach net-zero by 2050, immediate action and $9.2 trillion in annual investment is required, or about 7-9% of global GDP. This would be $3.5 trillion annually more than today, which in 2020 was equal to roughly:
This infographic sponsored by Carbon Streaming Corporation shows how carbon credits can help accelerate a net-zero future by funding climate action.
Carbon credits play a vital role in channelling finance to help close this funding gap. Here are some ways in which carbon credits can be used:
Thanks to a growing number of initiatives listed below, 2023 is anticipated to bring greater credibility and transparency to the carbon credit market.
Identifying high-quality carbon credits is important because not every type of credit offers the same scope of benefits. Carbon credit buyers look for credits that offer tangible benefits that go beyond CO₂ reduction or removal, such as:
Often, credits that offer these types of benefits command a price premium.
At the same time, demand for carbon credits is expected to increase. Within the decade, the value of the voluntary carbon market could grow from $2 billion up to $50 billion.
Voluntary carbon markets refer to the transactions in which carbon credits are purchased by corporate and other buyers that voluntarily (not required by a regulatory act) want to compensate for their emissions or advance sustainability goals.
Source: Ecosystem Marketplace, McKinsey, UNFCCC
Today, over 8,300 corporate, 1,100 municipal, and 52 regional net-zero commitments are set to drive market growth.
Carbon Streaming is a publicly listed company that invests capital in high integrity carbon credit projects on a global scale. It uses the proven, flexible streaming model to create long-term partnerships.
This model aligns interests to benefit all stakeholders.
Carbon Streaming’s growing portfolio of carbon credits includes over 20 projects across six different project types in 12 countries that aim to accelerate a net-zero future.
By the end of 2023, carbon credits are expected to be issued from 10 or more projects.
Importantly, all of Carbon Streaming’s carbon projects aim to advance multiple UN Sustainable Development Goals. Carbon Streaming intends to continue growing and diversifying its portfolio while selling carbon credits received to maximize value for all stakeholders.
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