A total surplus of 1.2 billion metric tons of carbon credits might flood the carbon market at short notice, according to an analyst from London-based Trove Research.
The analyst pointed out that there is a market surplus of 600 million tonnes of carbon credit. These credits have been issued but not yet retired and are enough to match market demand for roughly 3.5 years.
On top of the existing 600 million tonnes of supply, there are also 600 million tonnes of credits in the accounts of carbon project creators. These credits aren't registered in emissions databases yet but might flood the voluntary market if prices rise.
