ESG Focus

Credit Suisse and Morgan Stanley provided Article 6 summaries in their recent COP26 updates, and noted that voluntary carbon markets could direct US$1 Trillion a year of transition capital towards developing countries by 2050.

The Carbon Market Is Experiencing Significant Growth

Increased pressure on corporations to implement environmental, social & governance (ESG) policies has resulted in rapidly growing demand for carbon offset markets. Due to these changes, the total value of global carbon markets grew five times since 2017, hitting a record $261 billion in 2020 (compliance & voluntary markets combined.)

With more government regulations to curb emissions, increased societal pressure meet carbon targets, and increasing costs of emission reduction projects, these prices are expected to continue to rise through 2050.

"The cost of offsetting corporate carbon emissions is expected to surge tenfold over the next decade as growing numbers of businesses adopt net zero targets, with carbon credit prices tipped to reach between $20 and $50 a metric ton of CO2 by 2030"

Trove Research

July 2021

Credit Suisse and Morgan Stanley provided Article 6 summaries in their recent COP26 updates; noting voluntary carbon markets could direct US$1 Trillion / year of transition capital towards developing countries by 2050.

Morgan Stanley

December 2021