DeepMarkit Blog

2023 is off to a strong start in the world of Nature Based Finance and the scaling of carbon credit markets. In this blog post we highlight three articles published in the first week of 2023, lending further confidence that the world of climate finance is alive and well.

The $2 billion Voluntary Carbon Market, which has grown 3x since 2019, is expected to balloon to $40 billion, according to carbon market intelligence firm, Sylvera (Source: Sylvera "Carbon Credit Crunch Report 2022") Bringing this rapidly growing asset class to the blockchain to improve market transparency, has become a globally critical discussion. To unlock growth and drive capital to regenerative projects around the world, transparency and security in the trading of voluntary carbon offsets must improve, and blockchain is becoming recognized as the de facto solution.

WEF Launches Coalition To Investigate how Web3 and Blockchain Tools can be Utilised to Achieve Positive Climate Action.

Carbon-Tech Draws Record Venture Funding as Investors Hunt for Impact Investments in carbon startups hit $1.4 billion in Q2 Demand for carbon-tech comes despite broader market decline

Morgan Stanley: "The thesis is that the path to disruption will start at a niche segment of the high-end market." "If the trading volume over these marketplaces grows to meet the increasing demands of buyers looking to meet net-zero targets, it is likely that the service layers of tokenization and the marketplace itself will likely become valuable entities."

Rapid growth is expected in the voluntary market, where companies purchase credits from carbon reduction initiatives that are not necessarily linked to regulatory regimes. The recent COP26 global climate change conference adjourned with a first-ever multinational agreement on trading standards. Carbon reduction activities with local co-benefits (job creation, biodiversity preservation) are likely to be well embraced by local stakeholders. This can lead to greater permanence and legitimacy and help minimize external threats.

Flowcarbon raises $70 million from Andreesen Horowitz, Samsung, token sale

Nearly a dozen startups are planning to list on Canadian exchanges to raise funds to finance carbon-credit purchases or invest in ventures that generate credits.

Carbon markets turn CO2 emissions into a commodity or tradable asset by giving it a price. Blockchain and smart contracts will improve those markets.

The push toward Net Zero 2050 is well underway.

Widely followed ‘fin-fluencer’ Jay Martin of Cambridge House is weighing in on the carbon credit sector.