The Financial Times reported that, according to S&P Global Platts, the price of a tonne of carbon on the voluntary market rose from 4 to 12 US dollars since June last year (FT 6-1-’22). This is the result of a soaring demand from companies who scramble to buy the credits in order to compensate for their emissions and fulfil their net zero emission pledges.
Interest in the market was fuelled by last year’s COP26 UN climate summit in Glasgow. Expectations are that the voluntary carbon market will grow this year into a space potentially worth billions. In order to achieve this and keep up investors’ confidence, further standardization of the largely unregulated voluntary carbon market is critical.