EMITTER A
EMITTER B
Offset Credits
CARBON
MARKET
Transactions among emitters & participants
Auctions and sales by mutual agreement
Real
GHG emissions
Real
GHG emissions
Excess
GHG emissions
Reduced
GHG emissions
Allocated GHG emission units
PURCHASE
SALE
Cap-and-Trade System
An overall emissions cap is set and permits are allocated or traded among participants
The Carbon Market
Carbon Tide.
VISION
Why Invest in Carbon?
Our demand on nature exceeds the Earth’s annual biological capacity to regenerate. Humanity's Ecological Footprint is 2.6 global hectares per person, of which 60% is carbon Footprint. Investing in carbon projects provides an economic incentive for investors and environmentalists to protect our planet and its people.
Food Security
Pollution & Climate Change
Key Statistics
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75% of the earth’s land surface has been significantly altered by human actions
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1 million species threatened with extinction
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1.9 million km2 natural habitat lost since 2000
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80% of all threatened species are impacted by food, land & ocean use, extractives & energy
Source: Global Footprint Network 2023
Deforestation & Loss of Habitat
Global carbon markets value hit record $949 bln in 2023 -Reuters
The IMF and WTO are advocating for an international carbon pricing floor.
Annual global demand for carbon credits could reach 1,500-2,000 million tonnes of CO2 equivalent by 2030 - McKinsey
Carbon Credits Are Necessary
BloombergNEF estimates that the carbon footprint of the 820 largest companies with net-zero goals totals 20.8 billion tons of carbon dioxide equivalent (GtCO2e). Scope 3 emissions make up a whopping 83% (17.2GtCO2e) of that footprint (Figure 2).
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BloombergNEF estimates that the carbon footprint of the 820 largest companies with net-zero goals totals 20.8 billion tons of carbon dioxide equivalent (GtCO2e). Scope 3 emissions make up a whopping 83% (17.2GtCO2e) of that footprint (Figure 2).
By 2050 the Voluntary Carbon Market could reach $1.1.trn USD
"BNEF: Annual demand for these offsets [VCS] could reach 5.9 billion tons, prices could peak at $243 per ton and annual value could top $1.1 trillion (Figure 1).
The Carbon Market Opportunity
Carbon Tide
Carbon Market Mechanism
Entities can invest in projects that reduce emissions or remove carbon from the atmosphere, genrating carbon credits
Carbon Offsetting
Investments in emission reduction projects in devoloping countries
Certificate obtained for payment of carbon offsets
Carbon offsets, including tree planting & renewables projects
Companies/Goverments needing to meet their emission targets
NUMBERS
Carbon Credit Price Trends
$949B+
Global Carbon Market Value in 2023
2B Tons
Annual Carbon Credit Demand by 2030
$1.1T
Projected Market Value of the Voluntary Carbon Market by 2050
83%
Scope 3 Emissions of the Largest Companies' Total Carbon Footprint
BloombergNEF estimates that the carbon footprint of the 820 largest companies with net-zero goals totals 20.8 billion tons of carbon dioxide equivalent (GtCO2e). Scope 3 emissions make up a whopping 83% (17.2GtCO2e) of that footprint (Figure 2).
“Demand for carbon credits could increase by a factor of 15 or more by 2030 and by a factor of up to 100 by 2050. Overall, the market for carbon credits could be worth upward of $50 billion in 2030.”
“Prices for carbon could rise to a central estimate of US$80-$150 per tonne by 2035 (in real 2020 dollars). In comparison, prices are currently US$25 per tonne today”
“In the Removal scenario, prices reach an impressive $146/ton in 2030 and $172/ton in 2050. This market would have an annual value exceeding $884 billion in 2050, showcasing the importance of righting the ship in the voluntary carbon market and keeping demand strong.”
Carbon Credit Current Pricing
Source: Abatable. Data as of August 2022. References to minimum, median and maximum carbon prices are illustrative only and reflect indicative prices observed by the Abatable team during the procurement activities on behalf of its clients. Reference benchmarks provided by CBL Xpansiv, S&P Platts, CME, Allied Offsets have also been considered, as well as prices from other carbon offsetting marketplaces monitored by Abatable. Prices are based on estimates and are not representative of past or future performance.
Emission reductions must be additional to what would have occurred in the absence of the project.
Additionality
Emissions reductions must be measurable and verifiable by independent third parties using robust methodologies.
Verifiability
An accurate assessment of what emissions would be without the project, to ensure proper calculation of reductions.
Strong Baseline
Carbon reductions or removals should be long-lasting and not easily reversible.
Permanence
High-quality projects provide additional environmental or social benefits such as biodiversity protection or community development.
Co-benefits
Ongoing monitoring to ensure the project continues to deliver the promised carbon reductions over time.
Monitoring & Verification