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In June, Taiwan's Carbon Exchange launched its first batch of blue carbon credits from a mangrove restoration project in Myanmar, certified by international body Verra. This initiative is part of a broader plan to promote high-quality, nature-based carbon credits, a type favored by global corporations like Apple and Microsoft.
With a wide array of carbon credit types and price ranges in the market, how can businesses evaluate the benefits and risks of these instruments? This report delves into the evolving dynamics of the voluntary carbon market.
Global voluntary carbon market: Decline in trading volumes
Despite the growing focus on emissions reduction, the 2023 Global Voluntary Carbon Market Report reveals a contraction of at least 60% in market value, down to $723 million. This decline stems from increasing scrutiny of carbon credit quality and widespread greenwashing scandals.
As a result, many businesses and investors have opted to monitor market developments while waiting for stricter and more credible standards. This cautious approach has led to decreases in both trading volumes and total transaction value (see Figure 1).