Investment Trends and Outcomes in the Global Carbon-Credit Market-2024
In an update to last year’s report, we present an analysis of capital flows in the global voluntary carbon-credit market, taking into consideration both publicly announced raises and commitments of capital and capital expenditure at a project level.
Key findings include:
Capital expenditure: Between 2013 and 2023, almost USD 42 billion was spent on the origination and development of almost 12,000 registered and pre-registered carbon-credit projects globally, with nature-based projects accounting for more than half of the total spend.
Capital raised and commitments: Between 2021 and Q3 2024, around USD 43 billion has been committed or directly raised to invest in carbon-credit activities, with the majority going into carbon-removal projects, including nature and engineered projects, as highlighted in the exhibit. 2024 looks set to be a record year, with USD 14 billion having already been raised or committed by the end of Q3 2024.
Carbon-credit projects come with multiple benefits. While they can naturally help protect the climate, nature and biodiversity, many of these projects also support the UN’s other sustainable development goals such as affordable clean energy, sanitation and economic growth. They also support jobs — our analysis of REDD+ and ARR projects shows that on average each of these projects created jobs for around 100 people, with some larger projects reporting new employment into the thousands.
Data as of Sept. 30, 2024. Source: MSCI Carbon Markets
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State of Integrity in the Global Carbon-Credit Market
This report describes the methodology of the MSCI Carbon Project Ratings and finds that of the more than 4,000 projects assessed, fewer than 10% are rated in the AAA-A band. There are, however, some encouraging signs of a trend to increasing integrity.
Nature-Based Offtake Deals: Something Is Stirring in Voluntary Carbon Markets
The trend of companies engaging in offtakes for carbon credits may well continue, given a greater certainty for buyers and project developers than the traditional spot market. We look at some of the plusses and minuses behind this trend.
Investment Trends and Outcomes in the Global Carbon-Credit Market (2023 edition)
Although USD 18 billion was raised for carbon credit projects in the last two and a half years alone, the current rate of investment is only one-third of the level needed to deliver the volume of credits required by 2030 under the agreed upon 1.5°C goal.
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