RECCESSARY and EnergyOMNI co-hosted the “New Energy and Carbon Market Business Forum,” bringing together industry leaders and experts to explore global carbon market trends and industry challenges. (Photo: RECCESSARY)
Carbon market is regaining momentum as it enters the “carbon credit 2.0” era, driven by strengthened quality standards and the accelerated development of carbon removal technologies.
Speaking at the “New Energy and Carbon Market Business Form” co-held by RECCESSARY and EnergyOMNI on June 19, Sherry Hu, carbon market analyst at RECCESSARY, said that the motivation behind corporate carbon credit procurement is gradually shifting from policy and regulatory compliance to asset allocation and long-term net-zero strategies.
Voluntary carbon market rebounds: 5 roles for businesses
Corporate carbon credit procurement falls into two categories: regulatory compliance and supply chain requirements, or companies’ own decarbonization needs.
According to Nadine Lim, international policy analyst at the International Emissions Trading Association (IETA), the number of carbon pricing mechanisms has grown significantly over the past two decades, with carbon taxes and emissions trading system now covering nearly a quarter of the global emissions.
While carbon pricing was initially concentrated in Europe and the U.S., Asia is expected to become a key growth driver in the coming years, as more countries consider implementing carbon taxes or emissions trading schemes.
Although the voluntary carbon market saw a decline in both trading volume and value following the carbon credit quality controversies in 2021, it has begun to regain momentum since last year and is expected to recover further, said Hu, cited a report by the Ecosystem Marketplace. Moreover, global demand for carbon credits remains resilient, with usage reaching 182 million metric tons in 2024.
