Demand for carbon offset credits is set to soar in the coming decades as companies look to deliver on their net zero targets and governments seek to encourage investment in natural carbon sinks and negative emission technologies.
Prices of carbon offsets have ticked upwards over the past year, as corporates have sought to snap up credits from credible projects to help deliver on their net zero targets.
“If done correctly, their patience could be rewarded with a market valued at more than $550bn by mid-century,” he said.
The report models the prospects for the carbon offset market under three scenarios: a voluntary market scenario, an SBTI scenario and a hybrid scenario.
In contrast, the SBTI scenario would limits the supply of credits to removal offsets like reforestation and nascent technologies such as direct air capture.