'Growing pains': BNEF warns carbon offset market faces uncertain long term outlook

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. But uncertainties around the supply of credible credits and the regulatory regime for the sector are making it hard to predict how the market will evolve.

That is the conclusion of a new report this week from influential research firm BloombergNEF, which details how carbon offset prices could reach as high as $120/ton or as low as $47/ton by 2050.

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. Project developers have struggled to meet increased demand given the inherently long planning and development cycles for most nature-based emission reduction projects.


Keep reading this article on Business Green - Incisive Business Media (IP).

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