💥What’s happening in the Voluntary Carbon Market (#VCM)?💥

South Pole, a project developer and provider of global climate solutions, recently published an analysis of the evolving VCM. Let’s take a look at some of their key findings:

What is the current state of the VCM?

💼 Demand has been steadily growing in the past five years and we’re seeing a significant share of new buyers entering the market, accounting for 57% of retirement in 2022.

🎯This growing demand is being driven largely by voluntary climate targets rather than compliance.

⚡️The top sectors of carbon credit buyers globally in 2022 were energy, telecom and real estate.

What are some of the key developments that could affect carbon dioxide removal (#CDR) in 2023?

🏭Demand for carbon removal projects is projected to see a significant increase. For example, the #NextGen CDR Facility is planning to procure over one million tonnes of ICROA-certified CDRs over the next two years, which would more than double the total amount of CDRs that have been purchased to date.

0️⃣ In the past year, there has been a marked shift from climate neutral claims to a focus on net zero. The shift has been driven in part by stricter regulation of non-compliance (for example in France).

💻#Digitisation has much to offer for monitoring, reporting, and verification (#MRV) regimes. Digitising MRV (#dMRV) can increase transparency and accountability, save costs for project developers, and provide verifiable data for buyers. This is exactly what we at Carbonfuture are working on.

Overall, the shift from climate-neutral claims to net zero and market entry by new buyers could drive increased demand for the VCM, especially CDR.

Read the full report here: https://lnkd.in/dxW6heqJ

What do you think? What trends do you see in the VCM?