BloombergNEF, a strategic research provider, released its inaugural Long-Term Carbon Offset Outlook 2022, an annual analysis that will update the global carbon offsetting market trends and forecasts.
In the outlook, carbon offset costs could rise to an average of US$47 per tonne in 2050, if attempts to improve the quality of carbon credits are not sufficient. Double-counting, programs that do not genuinely yield additional carbon reduction or preventive benefits are issues yet to be resolved. Moreover, projects are faced with increasing risks caused by extreme weather.
In this scenario, drivers behind offsetting are corporations, rather than countries, with high-emitting and difficult-to-abate industries like heavy industry and aviation leading the way. BNEF projected that supply will be four times larger than demand in 2030, with many other corporations unwilling to invest in offsetting.
