The Carbon Market
A multi-billion dollar market has developed across the world for carbon emission permits and reduction credits, offering companies that reduce GHGs the opportunity to earn additional revenues.
In recent years, the voluntary carbon market has taken off because more and more companies are seeking carbon neutrality. Corporations large and small are looking for high-quality carbon offsets, but only if they meet strict criteria. However, the market has become more complicated, which presents challenges and opportunities.
That’s where Carbonomics comes in. We help companies with GHG-lowering technologies navigate the complexity of bringing their projects to the carbon market. We work closely with all of the main registries that issue carbon offsets, which are also eligible under certain compliance programs, such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
While the overall value of the Voluntary Carbon Market has remained flat in 2023 and 2024 at about $1.4 billion, according to MSCI Carbon Markets, the number of buyers continues to grow, as shown below in Allied Offsets VCM 2024 Review.
In addition, MSCI states that “by 2050, many companies will be up against, or past, their net-zero deadlines, and the same factors — urgent corporate demand and the shift to higher-quality credits — could send the value of the market up into new territory. The greater the length of a forecast, the greater the uncertainty, but if commitments are maintained, we estimate that the market could be worth between USD 45 and USD 250 billion (at 2024 prices).”
Article 6.4
The potential increase in carbon pricing will come from the continued convergence of voluntary and compliance carbon markets. And that is where Article 6.4 of the Paris Agreement comes in. Carbonomics staff operated extensively under the Kyoto Protocol’s Clean Development Mechanism, and Article 6.4 will work in a similar manner, with a UN Supervisory Body overseeing new methodology development, project registration and credit issuance. Carbonomics is taking the lead in helping companies implement the best potential Article 6 strategy. Article 6 credits will no doubt be worth more than conventional offsets, and we can help you maximize that value by navigating this complex process. Contact us if you are seeking to develop an Article 6.4 methodology.
Focus on CDR
Carbonomics has helped numerous clients navigate Carbon Dioxide Removal (CDR) credits, particularly as it relates to the new registries. We are developing biochar projects and have advised clients on quantification and monitoring around direct air capture, enhanced rock weathering and CO2 absorption into carbonated materials. Carbonomics can help your potential CDR technology generate high-value carbon offsets.